EVALUATING IMPLEMENTATION OF BALANCED SCORECARD APPROACH: A CASE STUDY ON DEVELOPMENT BANK OF ETHIOPIA

Abstract

The purpose of the study is on evaluating the practices on the building and implementation of the Balanced Scorecard system in Development Bank of Ethiopia. The study basically pin points on identifying the preparation activities performed prior to the commencement of the implementation process, how the implementation process was handled and indentifying the status at which DBE is in the process of implementation. In addition to this, it focuses on whether DBE follows the essential steps in developing and implementing the BSC. Also it tries to identify the challenges faced and the achievements obtained as a result of implementing BSC in DBE. To achieve this, descriptive survey research design has been deployed. The study employs simple random sampling technique based on which 75 respondents were selected for gathering data through self developed questionnaire, which is the main data collection instrument. The results of the questionnaire were compiled by using SPSS. Descriptive statistics method was used for analyzing data obtained through questionnaire. While the data obtained from interview was analyzed thematically. The outcomes of the analysis were presented using tables and graphs. All in all, the findings of the study reveal that DBE has fully implemented the Balanced Scorecard System. In doing so, it has been observed that employees’ involvement in the building process was neglected, gap has also been observed with regard to the development of realistic performance measures understanding the measures and difficulty in applying them. Having these facts at hand, the researcher concluded that DBE has handled the building and implementation of BSC in a very good way. In order to fill the gaps cited above, recommendations forwarded were to improve the level of employee participation at different position, reevaluate and clarify the performance measures in consultation with operational employees, , and finally, to seriously evaluate and monitor the system periodically. V