Implementation of the balanced scorecard as a strategic management tool at Insurance Company of East Africa
Strategic management is the art, science and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives and then allocating resources to implement the policies, and plans, projects and programs.The BSC is designed to give companies the information they need to effectively manage their business strategy tactically. The scorecard is similar to a dashboard in a car. As you drive you can glance at the dashboard to obtain real-time information such as how much fuel remains, the speed you are traveling, the distance you have traveled, etc. The study design was a case study aimed at getting detailed information regarding the process of balanced scorecard implementation and challenges the Insurance Company of East Africa had encountered. Primary data was collected from the company staff by use of interview guides .The completed interview guides were edited for completeness and consistency before processing the responses. Being a case study, content analysis was quite useful. The study found out that ICEA had used balanced scorecard as strategic management tool, which was implemented by senior managers, all employees, entire management, human resource managers, section heads, line managers and management at all levels. The study also found that there were key stages used in the implementation of balance scorecard at ICEA. The study further found the implementation of BSC at ICEA encountered challenges resistance to change, lack of information and limited resources. The study recommends use of management strategies such as offering performance pegged rewards, job rotation and training among others. This would help in overcome challenges in integrating the balanced scorecard. Some of the limitations of the study included lack of adequate time for intense exposure with the phenomenon as the case study methodology requires.