Balanced scorecard application in strategic management at Flashcom limited
Organisations face many challenges in their quest for survival and growth hence the need for the adoption of a strategic management approach. There are many tools and techniques that have been developed to assist executives in strategic management. These include Total Quality Management (TQM), Kaizen, Six Sigma and Balance Scorecard (BSC). Of these tools andtechniques, the balanced scorecard seems to be gaining popularity. Theobjective of the study was to establish how balanced scorecard has been applied at Flashcom which is a relatively new company in the telecommunications sector. The research design was a case study as it required an in-depth understanding of the subject matter. Primary data was used in this study and it was collected through interviews with managers at Flashcom. The interviews were guided by an interview guide which consisted of open ended questions.The study found that the main reasons for the implementation of balanced scorecard was alignment of the activities of the company and individuals with the vision and mission, enhancement of team work, improvement on performance management and creation of focus on results rather than activities. Balanced scorecard has had an overall positive impact on the performance of Flashcom. Flashcom primarily uses balanced scorecard as a strategy implementation and performance management tool. The study also found that a number of challenges had been experienced. These include difficulties in objective setting, abrupt transition from the previous strategic management system to balanced scorecard, resistance to change, lack of linkage between training sessions for management and the rest of staff and non recognition of the role of 3rd parties in achieving some objectives. One of the limitations of the study was it was an in-depth study of how balanced scorecard has been applied at Flashcom. Therefore the findings may not apply to other companies. Another limitation is that the case study methodology requires intense exposure to the phenomenon being studied which sometimes can bias the study. Further study is required in certain areas as the balanced scorecard is a multifaceted tool with various applications in strategic management. These include, how balanced scorecard has been applied in other companies, performance analysis of organisations that have implemented balanced scorecard and balanced scorecard perspectives & measures that are relevant to various industries.