Balanced Score Card as a Tool of Strategy Implementation and Performance of Tier One Commercial Banks in Kenya
Abstract
This study was founded on the need to establish the application of the balanced score
card as a tool of strategy implementation and performance of Tier One Commercial
Banks in Kenya. To achieve this objective, the study used a descriptive cross-sectional
survey to determine the application of balanced score card as a strategy implementation
tool and its influence on the performance of these financial institutions. The target
population of the study included all the ten (10) Tier One commercial banks out of the 42
registered commercial banks in Kenya. The study used primary data which was collected
by a semi-structured questionnaire. The data was collected from operations managers as
well as representatives from the respective CEOs’ offices of the Tier One commercial
banks using a drop and pick- later method. Data was analyzed using descriptive statistics
and regression analysis. The study found that accurate funding, shareholder value and
participation, speeds and results to a good strategy implementation process and
availability of finance in these banks contribute to bottom-line strategy improvement. It
further established that a unit increase in the customer perspective leads to an increase in
the Performance of the Tier One commercial banks. The study also established that a unit
increase in business processes perspective leads to an increase in the performance of
these commercial banks. It also revealed that employee capabilities and motivation,
Information system capabilities, multi skilling and staff empowerment as well as
Rewards in performance management systems in the Tier One commercial banks
enhances strategy implementation. The study therefore recommends that all commercial
banks should continuously emphasize application of the balanced scorecard perspectives
in the strategy implementation process in order to remain relevant not only to their own
operations but also to the ever-changing macro-environmental dynamics. The findings of
the study will serve to enrich the Theory of the Balance Score Card as a tool of strategy
implementation by outlining important insights on the underlying principles that were
evaluated on, in regard to its application in these Tier One commercial banks. The study
suggests that further research studies can be done to determine the role of balanced score
card in the strategic management process so as to gain an understanding of the use of the
tool not only in the implementation stage but also in the entire process of strategic
planning and management.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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