Balanced score card as a tool of strategy implementation and performance of tier one commercial banks in Kenya
This study was founded on the need to establish the application of the balanced score card as a tool of strategy implementation and performance of Tier One Commercial Banks in Kenya. To achieve this objective, the study used a descriptive cross-sectional survey to determine the application of balanced score card as a strategy implementation tool and its influence on the performance of these financial institutions. The target population of the study included all the ten (10) Tier One commercial banks out of the 42 registered commercial banks in Kenya. The study used primary data which was collected by a semi-structured questionnaire. The data was collected from operations managers as well as representatives from the respective CEOs’ offices of the Tier One commercial banks using a drop and pick- later method. Data was analyzed using descriptive statistics and regression analysis. The study found that accurate funding, shareholder value and participation, speeds and results to a good strategy implementation process and availability of finance in these banks contribute to bottom-line strategy improvement. It further established that a unit increase in the customer perspective leads to an increase in the Performance of the Tier One commercial banks. The study also established that a unit increase in business processes perspective leads to an increase in the performance of these commercial banks. It also revealed that employee capabilities and motivation, Information system capabilities, multi skilling and staff empowerment as well as Rewards in performance management systems in the Tier One commercial banks enhances strategy implementation. The study therefore recommends that all commercial banks should continuously emphasize application of the balanced scorecard perspectives in the strategy implementation process in order to remain relevant not only to their own operations but also to the ever-changing macro-environmental dynamics. The findings of the study will serve to enrich the Theory of the Balance Score Card as a tool of strategy implementation by outlining important insights on the underlying principles that were evaluated on, in regard to its application in these Tier One commercial banks. The study suggests that further research studies can be done to determine the role of balanced score card in the strategic management process so as to gain an understanding of the use of the tool not only in the implementation stage but also in the entire process of strategic planning and management.
The following license files are associated with this item: