The Balanced Scorecard and Strategy Implementation Challenges at the Nairobi City County Government

Abstract

Organizations formulate strategic plans but only a few are able to successfully implement these plans. Currently counties are competing in a complex and challenging context that is being transformed by many factors from globalization, rapid change in technology, aggressive competitors and political interference and hence to maintain a competitive gain they must develop and implement strategic plans. The purpose of this research was to identify the challenges faced in strategy implementation using the balanced scorecard in Nairobi City County Government. The findings from this study may particularly be useful in providing additional knowledge to the Nairobi City County Government and other counties on using the balanced scorecard as a strategy implementation tool. The research design used in this study was case study. Primary data was collected using interview guide while secondary data was obtained from the County records. The researcher interviewed nine (9) top management staff from the different sectors of the Nairobi City County Government. The researcher used content analysis to analyze the data. It was established that strategy implementation at Nairobi City County Government is done through development of planning and control systems. Each sector does this differently depending on the areas concerned. The study revealed that challenges faced during the implementation process were employee involvement, communication, organization culture & structure, political interference & transition. The findings of the study should be understood and valuated in light of the limitations of the study. The study is especially useful to Nairobi City County Government. The study has also stated recommendations to overcome the challenges of strategy implementation using balanced scorecard as well as suggestions for further studies. The study recommended that there is need to have an improved information systems, better leadership styles, timely assignment of key managers, effective budgeting for the implementation process, reinforcement of the core values as stipulated in the strategic plan, merging of the performance contract and the BSC. The BSC should be used both as a performance measurement tool as well as a strategy implementation tool to achieve maximum benefit. The study also recommended that during strategy formulation more consultation and involvement should be embraced to allow all cadres of staff to participate. Finally, the employees should also be rewarded for successful implementation of the strategy