Challenges of application of the balanced scorecard in strategy implementation at the Kenya Electricity Generating Company
The action phase of the strategic management process is strategy implementation. This is one of the most critical phases of the strategic management process.. However, many organizations fail not necessarily because they have the wrong strategy, but due to poor strategy implementation. Careful thought has to be given to the strategy implementation tool that an organization would like to use. The balanced scorecard is one of the tools of strategy implementation. The balanced scorecard integrates the short term operational concerns of an organization with the long term strategic direction. Alignment of the day to day activities of an organization to the organization's vision and strategy is possible through the use of the balanced scorecard. It is a tremendously strong communication tool of the strategy and vision of an organization. It has three additional perspectives over and above the traditional financial perspective. The other perspectives, that is, learning and growth, internal business processes, and customer perspectives, are the drivers of future financial performance. Although the balanced scorecard has grown in popularity, its implementation posses some challenges. Some of these include; poor leadership, poorly designed scorecards, lack of training, lack of resources for its implementation, and lack of top management support, among others. This study sought to find out how Kenya Electricity Generating Company, (KenGen), has applied the . balanced scorecard in strategy implementation and the challenges faced in its implementation. KenGen is the leading electricity generating company in Kenya. Collection of primary data was through an interview guide and observation; this was to help meet the intent of the research. The respondents were from the departments charged with the task of implementing the balanced scorecard in KenGen. Analysis of the responses was through content analysis. The study established that KenGen uses the balanced scorecard as a strategy implementation tool. Further, the study identified a number of challenges faced in the application of the balanced scorecard in KenGen . Some include; lack of understanding of the scorecard, lack of visibility of the corporate and divisional scorecards, lack of support of the scorecard among many others. The findings of the study should be understood and evaluated in light of the limitations of the study. This study is especially useful to KenGen. The study has also highlighted institutional policy and practice recommendations to overcome the challenges of strategy implementation using the balanced scorecard. Also, provided, are suggestions for further studies.