Challenges Facing State Corporations in Implementing Balanced Score Card: a Case of Kenya Revenue Authority

Abstract

This paper is based on the challenges facing state corporations in implementing Balanced Score Card with reference to Kenya Revenue Authority. A case study research design was adopted for the study. Primary data was collected from 10 senior managers, one from each of the 10 departments of KRA, using an interview guide. Content analysis was used to analyse the data. It is established that Kenya Revenue Authority has a well-founded strategic planning system. The authority had the strategic plan (2013-2018) based on balance score card approach. The use of the balanced score card was to align the day to day activities of the authority to the vision and mission. The balanced score card had four perspectives of financial; learning and growth; internal business process; and customer perspectives driving the future financial performance. The implementation of the balanced score card has challenges which included but not limited to rigid organizational structure, lack of resources, complaisant organization culture and lack of top management support. The study concludes that the balance score card has been implemented to a moderate extent in KRA. The study also concludes that KRA face challenges in the implementation of BSC. The study recommends that a flexible organizational structure aligned with strategy, increased resource allocation for BSC implementation, adoption of a performance culture and increased management support. A similar study is recommended in a different sector like manufacturing