Influence of Implementation of Balanced Scorecard on Performance of Public Sector Organizations in Kenya: a Case of Water Resources Management Authority, Nairobi County

Abstract

The BSC is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals. The aim of the study was to explore the role of the Balanced Scorecard in managing performance of Public Sector Organizations in Kenya, the case of Water Resources Management Authority. Specific objectives were to determine the effectiveness of balanced score card on improving performance of public sector organizations in Kenya: a case of water resources management authority, to determine the influence of balanced score card on market share, customer satisfaction, and customer retention of public sector organizations in Kenya: a case of water resources management authority, and to establish the influence of balance score card on financial performance of public sector organizations in Kenya: a case of water resources management authority. This study utilized descriptive research design. The population for this study wa 300 respondents who included the top managers, middle level managers, and lower level managers who are involved in the implementation of balance scorecard and performance of Water Resources Management Authority, Kenya. The study utilized both a questionnaire and an interview schedule. Information obtained from the questionnaires was processed through editing and coding and then entered into a computer for analysis using descriptive statistics with the help of Statistical Package for Social Sciences (SPSS) version 20.The study established that when BSC is co-aligned carefully to corporate strategy, it helps a company‟s strategic focus and increases performance of an organization‟s strategy. The study further found that Balanced Scorecard is a management tool that provides senior executives with a comprehensive set of measures to assess how the organization is progressing towards meeting its strategic goals. The study further concluded that Balanced Scorecard is a management tool that provides senior executives with a comprehensive set of measures to assess how the organization is progressing towards meeting its strategic goals. The study finally concluded that Balanced scorecard is a strategic management technique for communicating and evaluating the achievement of the mission and strategy of the organization. The study recommends that the water resources management authority continuously improves on the balanced scorecard technique in order to remain relevant not only to its own operations but also to the changing macro-environmental dynamics. Some of the inadequacies of the technique have been attributed to lack of sufficient training of staff involved, in order for them to derive from the vision of the bank measures that not only reflect what their day to day work entails, but also ensure that these are SMART. To this end, it is suggested that more training of staff is required.