Balanced Scorecard as an Effective Strategy Implementation Tool by the Nairobi City County Government in Kenya

Abstract

The purpose of this study was to investigate effectiveness of balanced scorecard as applied in strategy implementation at the Nairobi City County government in Kenya. The study sought to find out if practices adopted by Nairobi City County government were in conformity with balanced scorecard best practices for nonprofit organizations and governments. The aim of the study was further to find out the challenges faced by Nairobi City County government in the use of balanced scorecard tool in strategy implementation. The findings from this study will enrich knowledge in the field of strategy implementation as it contributes to policy formulation and practice in county government management. A case study at Nairobi City County government was carried out where both primary and secondary data was obtained. Primary data was collected using semi structured interview guide where in depth probing was employed. Secondary data was obtained from management published reports and internet. The data was analyzed as per the objective of the study using content analysis. The findings from the study indicate that a number of best practices of the balanced scorecard is in application at the Nairobi City County government during strategy implementation. Strategic objectives of the county cascade well down to departments and individual employees. This has been achieved through strategy framework that dissects strategic objectives into seven key performance areas with respective key focus areas. Appropriate measurement tools, key performance indicators, track strategy implementation progress. The study also identified challenges of balanced scorecard implementation and suggested solutions to address the challenges. The findings from this study is expected to assist management at Nairobi City County government to exercise control designing policies, training and development for future needs. Better communications tools are expected to be employed to build consensus on strategy throughout the entire county government. The study will too contribute to body of knowledge of resource based and dynamic capability theories of strategic management as resource availability and how it is organized in achievement of strategic objectives is explored. Study findings is expected to act as benchmark for other counties from which policies framework and practices about strategy implementation using scorecard tool will be anchored. Other organizations may get a better understanding of balanced scorecard as a tool of strategy implementation, its effects and challenges.