A study of the implementation of balanced scorecard as a contituous improvement tool in Kenya Revenue Authority
Mbogo, Olive M
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The study sought to determine the role of management in facilitating Balanced Scorecard (BSC) implementation for improved and successful performance of Kenya Revenue Authority (KRA), establish the success factors in BSC implementation essential for Continuous Improvement (CI) and the benefits of implementation of BSC for CI at KRA, and establish the challenges of BSC as a continuous improvement tool at KRA. Studies have shown that BSC has been effectively applied in strategy implementation. In KRA, the implementation of BSC performance had not fully lead to the desired results. This was partly due to resistance to change from staff and stakeholders, lack of adequate resources and lack of an institutionalized monitoring and evaluation system to monitor implementation. As a consequence, there had been the need to shift emphasis from corporate to operational levels where initiatives can be prioritized and specific and measurable deliverables of the desired goals set. Thus, KRA needed to evaluate how to continuously improve its operations, that is, how to apply BSC to increase revenue collection through continuous improvement of its operations. The first objective findings showed that the role of management in facilitating BSC implementation for improved and successful performance of KRA could be summarized into: creation of strategic awareness on BSC implementation; educating employees on BSC; ensure attainment of organizations objectives, goals and strategy; influence, motivate and direct staff towards the achievement of set goals and communication by enhancing flow of information to staff. The second objective results summarized the main success factors essential in implementation of BSC for CI as training and education; top management support and commitment; ensuring clarity of vision, strategy and overall outcome; creation of strategic awareness of BSC, operations strategy and CI; link BSC to incentives and resources to implement system; and departmental, middle manager and employee participation buy in. The third objective findings established the benefits of implementation of BSC for CI at KRA. These were: delivery of customer focused services; employee co-operation and participation; embraced modern processes and technological advancements; clarity and better understanding of organization’s processes; teamwork-dedicated professional team; and systematic development of organization’s vision and strategy. The final objective was to establish the challenges of BSC as a CI tool at KRA. The findings recognized that KRA’s management challenges include: matching individual qualifications with job work assignments; effectively communicating the balanced scorecard; training and implementation challenges; continuous feedback process; main focus on top management; and lack of participation of all employees. These results confirmed that management should recognize that challenges do exist with any methodology adopted and should therefore be prepared to continuously improve their operations and processes. The study thus revealed that there is need for management to employ more resources in encouraging an effective feedback process. This is important since communication within an organization sets pace for employees’ participation and buy-in hence creation of strategic awareness across all management levels for CI. Further, endeavour to apply and provide a framework in which the success factors can be adopted to facilitate CI through BSC hence address the challenges faced in BSC implementation. In addition, the need to take advantage of all the benefits demonstrated by BSC approach for CI.