Effect of Balanced Scorecard on Performance of Kenya Ports Authority

Abstract

The study aimed to determining the effect of balanced scorecard on performance of Kenya Ports Authority and also to establish the challenges faced by Kenya Ports Authority with regard to balanced scorecard and gaps that can be addressed. The study was anchored on balanced scorecard model, resource based view and dynamic capability view. The research design was a case study, because the unit that was analyzed was one organization, Kenya Ports Authority, which was holistically studied in detail. The target group was Kenya Ports Authority heads of departments and their assistants, a population of 93 senior officers. A questionnaire with closed and open ended structure was administered for Research data collection. 69 out of 93 responded (74.19%) to the questionnaire. Descriptive statistics, inferential statistics of regression and correlation was used for analysis. For data keying in and processing statistical package for the social sciences (SPSS) software was used, with the results presented in tabular format. The study revealed that there was no automatic link between perspectives guaranteeing that exemplary performance in one perspective led to superior performance in the other. The study also found out that alignment of initiatives to strategic objectives and setting of realistic targets was key to success. Negative staff attitude and behavior featured as a result of a reward system that was found to be selective and yet the scorecard cut across the entire organization. The researcher’s key recommendation is that, to ensure departments complement one another effectively there is need to have service level agreements between them in order to come up with realistic targets and also need to ensure that the initiatives put in place are relevant to the desired performance outcome. Although the study concluded that there was positive correlation between balanced scorecard and Kenya Ports Authority performance and that balanced scorecard had positive effect on performance in the Authority, further studies need to be undertaken on scorecard perspectives inter-dependability through linkages, structural barriers, timeliness for perspectives complimenting each other and communication.