Application of Balanced Score Card in Strategy Implementation at Kenya Red Cross
Abstract
The aim of the paper is to conceptualise discussion on application of the balanced
scorecard in strategy implementation at the Kenya Red Cross. The Balanced Scorecard is
a performance measurement tool that uses a strategy map to connect an organization's
day-to-day processes to the organizational goals. It is concerned with creating a strategy
to drive future direction, building in cause and effect linkages while simultaneously
taking into account both financial and intangible resources that can determine success or
failure. Strategy implementation is critical element in organizational functioning, but
whereas most organizations have good strategies, successful implementation remains a
major challenge. The study is guided by the following objectives; To determine the
challenges faced by Kenya Red Cross in strategy implementation; to establish the use of
balanced scorecard as a tool in addressing the challenges faced in strategy
implementation at Kenya Red Cross; and to determine how the balance scorecard
objectives are set to achieve the Kenya Red Cross strategic implementation. The study
was conducted using a case study. Primary data collected from management and staff of
the KRCS was analysed to draw conclusions. The study found out that strategic
implementation at the Kenya Red Cross Society has to address challenges such as lack of
funds, inefficiency in governance, poor networking with other NGOs, ineffective
communications, limited capacity, unfamiliarity with organizational strategic approaches,
disparity in remuneration among NGOs and political interference. In regard to the use of
Balanced Scorecard as a tool in addressing the challenges faced in strategy
implementation at Kenya Red Cross, the study established Kenya Red Cross Society has
a balanced scorecard strategic planning and management system. The study concludes
that the Balanced Scorecard at Kenya Red Cross Society (KRCS) clearly stipulates how
each objective will be achieved. The society's objectives regarding stakeholders' welfare
are to improve livelihoods, increase contribution to national policy, enhance community
ownership and access to services. The application of the Balanced Scorecard at the KRCS
had resulted in benefits such as improved efficiency of disaster management, and
operations, improved provision of health and social services, strengthened organizational
capacity for effective and efficient implementation of programmes, improved community
livelihood and working relationship between KRCS units. The study recommends that
when an organization applies Balanced Scorecard, it need to take a very close look at the
organization structure and evaluate if it supports the strategies. The researcher had
encountered non-cooperative respondents who don't understand the significance of the
research. The researcher explained the importance of the study to them. The study
recommends further research on the effectiveness of monitoring and evaluation tools used
by the KRCS in monitoring and evaluating the strategic implementation using the BSC.
The study also suggests carrying out the same study in other parts of the country to find
out whether the same results will be obtained.
Citation
Master Of Business AdministrationPublisher
University of Nairobi