Challenges of the balanced score card in strategy implementation in Ernst & Young, Kenya
Strategy implementation: - Strategy implementation is ‘where the action is’ and is a process concerned with allocating resources to support the chosen strategies. This process includes the various management activities that are necessary to put strategy in motion, institute strategic controls that monitor progress, and ultimately achieve organizational goals. To effectively direct and control the use of the firm's resources, mechanisms such as organizational structure, information systems, leadership styles, assignment of key managers, budgeting, rewards, and control systems are essential strategy implementation ingredients. It is important to set up strategic controls to deal with the important steering function during the implementation process. The balance score card approach is essential in integrating strategic and operational control. The balance score card: - The balance score card is an approach linking operational and strategic control, developed by Harvard Business School professors Robert Kaplan and David Norton. It is a performance management tool that enables an organization to translate its vision and strategy into a tangible set of performance measures. However, it is more than a measuring device. The scorecard provides an enterprise view of an organization’s overall performance by integrating financial measures with other key performance indicators around customer perspectives, internal business processes, and organizational growth, learning and innovation. Ernst & Young-Kenya: - Ernst & Young, is one of the big four auditing firms both worldwide and in Kenya. Auditing firms in Kenya are consultancy organizations managed and run by Certified Public Accountants of Kenya. The research project focused on the challenges of the balanced score card in strategy implementation and was a case study on Ernst & Young-Kenya, an auditing and consultancy firm. Challenges of balanced score card in strategy implementation: The ability to implement strategies successfully is important to any organization. Despite the importance of the implementation process within strategic management, this is an area of study often overshadowed by a focus on the strategy formulation process. The implementation of the balanced score card do pose some challenges to organizations including leadership, managerial style and bias, poor organizational structures and communication challenges. The study aimed at finding out how Ernst & Young-Kenya, has applied the balanced score card in strategy implementation across the business and the challenges faced in the application of the balanced score card. The study was presented in five chapters and sections through which the researcher has tried to discuss the above issues. Data collection instrument was an interview guide and observation. 40 respondents were drawn from all levels and functions of the organization. Out of the 40 only 25 were interviewed and responses analysed by using content analysis. The study established that Ernst & Young-Kenya has used the balanced score card to implement its strategies. From the study, a number of challenges were established. The findings of the study should be understood and evaluated in light of the limitations of the study. This study is especially helpful to Ernst & Young-Kenya, Ernst & Young Global and other similar organizations. Institutional policy and practice recommendations to overcome the challenges of strategy implementation using the balanced score card are highlighted. Suggestions for further research are also given.