Balanced scorecard implementation at CIC Insurance Group.

Abstract

Strategic management is the art, science and craft of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its long-term objectives. It is the process of specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives and then allocating resources to implement the policies, and plans, projects and programs. The main purpose of this study was on balanced scorecard implementation at CIC Insurance Group. This study adopted a descriptive design since it has a variety of research objective or characteristics associated with a subject population. The study targeted CIC Insurance Group. Due to time and costs constraints, the sample size was fixed to 100 respondents using simple random sampling. Primary data was collected by use of a questionnaire. The research is both quantitative and qualitative in nature. This implies that both descriptive statistics and content analysis were employed. The study found that the organization faces challenges in the use of a balance score card as a strategy implementation tool to a great extent. It also found that a successful BSC implementation must involve the whole organization in the implementation process. Support for the linkage of compensation to strategic measures can only occur effectively when it is part of the process of strategy translation in the organization. The study concludes that that all the stakeholders including director’s associates and employees are normally involved in the process of implementation of the BSC. The implementation processes of the balance score card must be efficient to enhance the organization’s performance. On the same line, it can be concluded that the BSC is designed to give companies the information they need to effectively manage their business strategy tactically and that translating company’s plans and strategy into operational goals and activities, linking all the management and specialists’ hierarchy levels between each other (starting with the highest levels (CEO, top management) and finishing with the lowest staff members) are key factors on the use of BSC by organizations. The study recommends that the management should ensure that they employ and deploy qualified and competent individuals in the implementation planning of the balance score card. The study also recommends that CICs should employ monitoring/supervision mechanism, also allocate enough funds to allow BSC project completion. This will go a long way in improving the services to the respective CIC customer by improving its image.