The balanced scorecard as a tool for strategy implementation at chase bank Kenya limited
Abstract
As the organization faces the challenge of strategy implementation, tools to aid this
important task cannot be overlooked. The use of balance scorecard as a tool for strategy
implementation appears to be increasingly important in determining the success of
implementation of strategies. Chase Bank has grown as one of the Small banks build on
relationship banking model to maintain and grow its market share. The Bank has adopted
several strategic management tools to ensure attainment of its strategic. This study thus
sought to evaluate how the Bank has applied balanced scorecard as a strategy
implementation tool. The study adopted a case study research design because the unit of
analysis is one institution which was Chase bank Kenya Limited. The study used primary
data collected by the use of an interview guide. The study targeted 10 senior and middle
level managers at Chase Bank because of their key involvement in both strategy
formulation and implementation. Data obtained from the interview guide was analyzed
using content analysis. The study established that the Chase bank Kenya limited has
applied the balanced score card in strategy implementation and performance
management. The tool was adopted as means to align performance to strategy and
inculcate a performance driven culture and align the individual goals to the overall
organizational goals. It was also established that the use of the balanced score card was
introduced in order to involve employees in performance management since it was
viewed as an objective means of performance appraisal. The study concluded that Chase
bank Kenya limited had successfully applied the balanced scorecard method to
implement strategy and that the balanced score card has been used as a tool to
communicate and clarify strategy and directions within the business, gain consensus and
therefore rally the organizational members in the same direction. It also concludes that
the Balanced Scorecard 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. The study
recommends that the Chase Bank should continuously improve on the balanced scorecard
technique in order to remain relevant not only to its own operations but also to the
changing macro-environmental dynamics. 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.
Publisher
University of Nairobi