Balanced scorecard and strategy implementation at Britam asset Managers Kenya Ltd
Strategy implementation is made up of four elements including: identification of the general strategic objectives, formulation of specific plans, resource allocation, budgeting and monitoring and control procedures. It is through strategy implementation that an organization is able to translate formulated strategies into guidelines of its daily operations. Strategy implementation is not easy. The use of the balanced scorecard enhances the strategy implementation process. The balanced scorecard in strategy implementation provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. The operating environment for Britam Holdings Ltd group has changed as the group evolved from the previous structure. In order to improve the strategy implementation process, Britam Holdings Ltd group adopted the balanced scorecard in its operations. The study objective is to establish the application of balanced scorecard and strategy implementation at Britam Asset Managers Kenya Ltd a wholly owned subsidiary of Britam Holdings Limited. The study adopted a case study research design because the unit of analysis is one institution. The study used primary data and was collected using an interview guide formulated in line with the objective of the study. Data obtained from the interview guide was analyzed using content analysis. The study found out that strategy at Britam Asset Managers Kenya Ltd was formulated every 3 years and follows the Britam Holdings Limited group strategy formulation plan. Every employee at Britam Asset Managers Kenya Ltd is involved in strategy implementation. The balanced scorecard at Britam Asset Managers Kenya Ltd is developed by the management at a high level headed by the Chief Executive Officer and then cascaded down to the departments. The heads of departments prepare the departmental balanced scorecards which are cascaded down to the supervisors and to the respective employees. The study concludes that the balanced scorecard has assisted the organization in clarifying the vision and mission and translating them into tangible actions for each employee. The company encountered challenges in the use of the balanced scorecard as a tool for strategy implementation, which included limited understanding on the link between the strategy and balanced scorecard, mixing up of operational issues and strategic issues when using balanced scorecard. The study recommends that for successful strategy implementation using the balanced score card everyone must fully understand the overall organizational objectives and there is need for further training to deepen the understanding of the balanced scorecard and the role that each employee plays in overall achievement of the organization goals. The limitations of the study include the time factor, and the risk of subjectivity and bias in drawing inferences. These limitations however did not invalidate the research. For further research the study suggests conducting a similar study on other Business Units within the Britam Holdings Ltd group to establish if the results of the study can be generalized. Further the study recommends carrying out studies on the use of balanced scorecard by other asset management companies in Kenya for strategy implementation as well as the customization of the balanced scorecard in different organizations to suit the strategy implementation needs.
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