Application Of The Balanced Score Card In Performance Measurement By Kajiado County Government

Abstract

Performance measurement systems are important activities as far as improvement of organizational performance is concerned, and a well-developed performance measurement system is can help an organization to develop and improve its environment as well as its decision making processes. The balanced scorecard was developed to give a better measurement of the organization. The research objective of this study was to examine application of the balanced score card in performance measurement by Kajiado County Government, Kenya. Although performance measurement has been researched over the years, most of the studies have been undertaken in the private sector and not in the public sector especially in the County Government system in Kenya. And for the few studies that have investigated performance measurement in Kenya, they have tended to focus on the big organizations and for that matter none of them have investigated the use of performance score card measures in their studies. Therefore, a lot of useful information can be derived by understanding the application of the balance score card in the County Government system. This study was anchored on the balanced score card theory, the resource based view and the stakeholder theory. The researcher used a case study design for the current study. Data was collected from senior managers within the unit of interest which is Kajiado County. Data was analyzed by use of content analysis. The balanced scorecard was essentially used as a tool for strategy implementation and performance management. Strategy formulation was the framework from which the Kajiado County developed its mission and objectives relevant to the achievement of its vision and values. The balanced scorecard had been adopted in various departments that were applying financial, customer, learning and growth, and operational measures. The findings lead to the conclusion that the balanced scorecard has had a positive influence on the county government of Kajiado, and through the use of the balanced scorecard the financial and operational performance indicates tremendous improvement since it was implemented. When the balance scorecard is aligned with strategy formulation and implementation achievement of plans are enhanced. The findings showed that the balanced scorecard improves understanding of strategy and aspects of its formulation and implementation, and as a multifaceted tool, commitment from the leadership is important, but subsequent to that the results of the findings may desire a broader study to get a more convergent and certain appreciation of the value of balanced scorecard in organizations like the Kajiado County Government. The method used in data collection; face to face interview and analysis may also have some challenges due to the extent of subjectivity, and probably a more objective methodology may provide a better acceptance level