Balanced Scorecard as a strategy implementation tool at AAR Kenya Ltd
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Date
2012-10Author
Kariuki, Charles
Type
ThesisLanguage
enMetadata
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The balanced scorecard is a strategic planning and management system that is used extensively
in business and industry, government, and nonprofit organizations worldwide to align business
activities to the vision and strategy of the organization, improve internal and external
communications, and monitor organization performance against strategic goals. It was originated
by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance
measurement framework that added strategic non-financial performance measures to traditional
financial metrics to give managers and executives a more 'balanced' view of organizational
performance. For most organization formulating strategy is one of the easiest part but
implementing the strategy is the hardest part. The balanced score card is a tool that was
developed by Kaplan and Norton in the early 1990s to help organization in implementing
strategy. Balanced score can enables organizations to a align the vision and strategy with
activities of each individual employee in the organization. With the use of balanced score card
employees are able to see where they fit in the overall vision of the organization and their
contribution towards realizing the organization strategy. The objective of this study was establish
how AAR Kenya Ltd uses the balanced score card to implement strategy and also find out the
challenges the organization has faced and how it has dealt with those challenges. The study
found out that AAR Kenya Ltd has been using the balanced score card for the last five years and
it has reap immense benefits. The organization according to the study uses all the four
perspectives of the balanced score card; Internal business process, customer perspective,
Financial perspective and learning and growth perspective. When developing the KPIs for each
employee the organization puts a weighting that has a bias on the employees area of operation in
the organization. The study recommended that there is need for further training to employees to
deepen the understating of the balanced score card by all within the organization and what is
expected from each of the employee in contributing to the overall organization goals. The study
also recommended automation of the balanced score card process to ease the tedious process of
employees filling data manually. This will also create more objectivity and avoid chances of
manipulation to achieve better scores.
Citation
MBA Thesis 2012Sponsorhip
University of NairobiPublisher
School of Business, University of Nairobi
Description
Master Thesis