PRACTICE OF BALANCED SCORECARD (BSC) IMPLEMENTATION AT COMMERCIAL BANK OF ETHIOPIA

Abstract

The basic purpose of this study is to assessing the practice of CBE on implementation of Balanced Scorecard and challenges faced while implementing the system. The study tried to evaluate performances measurement tools and challenges by providing practical solutions and recommendations so that the banks choose the best option. the study has been conducted by preparing eight semi structured interview questions and other two questions mainly focus on non-financial performance of the bank answered by secondary sources. Qualitative and quantitative (mixed) research methodology has been used by researcher. The total population size of the study was 133s involving managerial and non-managerial staffs and directors of the bank who works on quality department. The study adopted non-probability purposive sampling technique to select 13 interviewee. Key informants who have the working knowledge of the system, from those samples the responses of all interviewee were analyzed using qualitative method and the data from secondary sources analyzed in quantitative way tabular, diagram and tables. In doing so the finding revealed that service delivery has been improved to expected level; after balanced score card implementation financial performance of the bank achievements in banking industry increased, Commercial bank of Ethiopia should engage balanced scorecard as their primary performances measurement tool a factor that will enhance their performance, increase their competitive edge and enhance their customer satisfaction .in contrary individual performance evaluation is carry out without reliable performance data, the bank is not satisfactory to give adequate training on BSC to update skills and improve employees for better performance. Furthermore, the major challenges are lack of effective Information Technology support regarding performance evaluation system and failure to get information on BSC. The study advised CBE to conduct intensive awareness activities; align individual performances to reward system with reliable performance data and carry out bench mark assessments from industry best implantations