Use of balanced score card in strategy development and implementation: a case study of Safaricom Ltd
The objective of this study was to determine the application of the balanced score card to strategic development and implementation and management of challenges associated with it at the Safaricom Ltd. The company is operating in a capital and competition intensive industry and the study also sought to look at the challenges the firm is facing in strategy development and implementation and how the balanced score card is helping overcome such challenges. The study found that Safaricom Ltd takes in to consideration its strengths and weaknesses as well as external factors and the threats and opportunities such factors present during the process of strategy development and implementation. It was also found that the firm uses the balanced score card for strategy development and implementation. Safari com Ltd uses the four perspectives of the balances score card namely the customer perspective, the financial perspective, the growth and learning perspective and internal processes perspective. The study found some challenges due to lack of a proper understanding and leading to a lack of commitment by some employees. This was manifested in some resistance to change in strategy implementation. The study also found a challenge in maintaining relevance of the firm's strategies in a dynamically changing environment and the regulation in place by the industry regulator which was seen as leading to slow rate of diversification. The study recommended that the strategy development and implementation steering committee conduct company wide training for all members of staff to better understand the strategy development and implementation process and the concept balanced score card to enhance better understanding and buy in. The study concluded that Safari com Ltd does indeed use the balanced score card in strategy development and implementation which has enabled it accrue benefits both in financial performance and customer satisfaction with its products and service offering.