An understanding of strategic planning is recommended prior to taking this course. The balanced scorecard was devised as a result of the need to incorporate non financial variables to measure performance of an organization. Ethiopia the public sector has undergone several reform initiatives at both federal and regional government levels. Dhba supply chain vision and development path 72 figure 517. The balanced scorecard and strategy implementation. The present paper tries to examine the applicability of bsc as a performance measurementcummanagement system in academic institutions. Evans, cpa, cma, cfm this course provides a stepbystep guide on how to build a balanced scorecard. Ethiopia health sector federal ministry of health case study page 2 of 22 the decision back in ethiopia, minister tedros convinced the ministry leadership that a balanced scorecard was a higher priority for funding than competing initiatives. The balanced scorecard graphic, shown below, is a key deliverable and brings all the strategic elements of strategy formulation and planning together in one simple to understand graphic that becomes the heart of the process of communicating the organizations strategy to all employees. Commercial bank of ethiopia is currently implementing the balanced score card at all districts characterized as a strategic process aimed at the development of an appropriate culture linking people management, service issues, vision and long term goals. This paper intends to outline an academic scorecard that serves as a strategic framework for measuring institutional performance in ethiopia. Bsc for measuring organizational performance amharic version 1997 ec.
Keywords balanced scorecard bsc, higher educational institution hei, performance management system i. Pdf purpose the purpose of this paper is to examine adoption of the balanced. Logistic costs as percentage of turnover total net sales 77 figure 62. The balanced scorecard is a management tool that combines historical financial data with significant qualitative information in nonfinancial areas, to lead a company to future success. Through strategic activities a balanced scorecard makes an organization able to centre its abilities to attain present financial results and create future value. Despite significant improvements in health care services in recent years, inconsistent and unreliable quality of care 1 is very rampant. The basic idea, as introduced by kaplan and norton, is that it views an organization through four different perspectives. Bsc, performance measures, good governance, public sector reform. It can be used in unearthing organizational strategy success and deficiency. The assessment of balanced scorecard implementation in the. A case study on selected public universities in ethiopia. Pdf bsc for measuring organizational performance amharic.
Financial perspective measuring performance out come in terms of reducing administrative costs to both erca and customers and in terms of raising revenue. A critique of the balanced scorecard as a performance. The main objective of this paper is to suggest balanced scorecard techniques to. Subsequent goals include, study and analyse the currentexistingmanual system of balanced scorecard performance evaluation for some selected organizations in ethiopia, determine the thresholds and measurements of the perspectives. The balanced scorecard is a managementthe balanced scorecard is a management tool that provides stakeholders with a comprehensive measure of how theof how the organization is progressing towards the achievement of its strategic goals. The balanced scorecard has emerged as a system that can be relied on to deal effectively with issues faced by organizations. Implementation perspectives of balanced scorecard 2. Bsc balanced scorecard bolsa bureau of labor and social affairs cbo communitybased organizations ccc community care coalition esswa ethiopian society of sociologists, social workers and anthropologists fgd focus group discussion goe government of ethiopia gtp growth and transformation plan. An experience in communication affairs bureau dire dawa administration, ethiopia. The benefits of using balanced scorecard as a strategic management system are linked to the structure of a balanced scorecard process.
Introduced in the early 90s by kaplan and norton, balanced scorecard bsc composed a contemporary framework for the evaluation of a company or an institution. Bsc, performance measures, good governance, public sector. Bsc, balanced score card or the performance scorecard, as performance measuring and management instrument, groups the financial and nonfinancial key. Although the agency can oftentimes perform this mission in wha. To my belief, this work undertaken by hiwot tadesse and. Performance evaluation of selected ethiopian commercial banks. The effect of balanced scorecard on strategy participation. Ethiopia health sector federal ministry of health case study. Masters degree thesis management of the supply chain. Ethiopia has achieved significant improvements in priority areas such as maternal and child health, malnutrition, communicable. Effects of balanced scorecard on performance of firms in the service. Balanced scorecard, performance management systems, social and environmental issues. Balanced scorecard financial measurement of organizational.
Erca has been developing and implementing an enhanced performance management system the balanced scorecard. As the founders of the concept, they promote the concept primarily as a tool that can provide aid in the implementation of strategy. The bsc is useful for successful implementation of the institutes major activities to realize its vision by addressing major public health priority areas in cascaded, sustained and coordinated manner. The objective of the study is to assess the implementation of balanced scorecard in the commercial. In this sense, unless a given organization measures and manages its performance, it is difficult to control its performance. A survey on practice and challenges of balanced score card. Implementing the balanced scorecard in public organization. The rapid expansion in university education has changed the educational sector. My experiences as a balanced scorecard practitioner with a large canadian company taught me that tremendous results are possible with the tool, but to attain. The 2nd bsc based ephis strategic management plan 201516. Introduction performance measurement has been a popular topic for both industrialists and academics.
The bsc breaks strategy into actionable components strategic objectivescontinuous improvement actions linked in a value creation story a strategy map through four distinct perspectives performance lenses. Pdf public sector reforms and balanced scorecard adoption. Balanced scorecard methodology in measuring company performance in. Balanced scorecard bsc as information based strategic management tool is capable of removing the limitation associated with the traditional measures for evaluating the current status of a hei. Adapting the balanced scorecard into the healthcare industry. The balanced scorecard and strategy implementation challenges. Customer value proposition the basis of an organizations. The paper tried to entangle the current puzzle on the implementation of the balanced scorecard, especially within a healthservice provider. Stock costs as percentage of turnover total net sales 78. Ethiopia that is capable of fitting into an enterprise resource planning erp system of organizations. Challenges facing the implementation of the balanced. Balanced scorecard is becoming popular in governmental organizations. A key factor of the fast spread of the balanced scorecard was the possibility of using a measuring system to control the implementation of company vision and strategy.
Balanced scorecard following the implementation of the business process reengineering exercise in erca that resulted in the merging of the ministry of revenue, federal inland revenue authority and the ethiopian customs authority, erca has been developing and implementing an enhanced performance management system the balanced scorecard. The balanced scorecard bsc came to the fore following drawbacks from using financial measures only to measure company performance. Introduction kaplan and norton developed the concept of the balanced scorecard bsc in 1992. About balanced scorecard institute the balanced scorecard institute provides training, certification and consulting services to commercial, government, and nonprofit organizations worldwide. Application of the balanced scorecard in higher education. Balanced scorecard, performance management tools, management control systems 1. Using balance scorecard in educational institutions. Pdf balanced scorecard in higher education institutions. Balanced scorecard is a popular tool for implementation of strategy kaplan and norton 1996a. List and describe the suggestions and features of a good balanced scorecard. Balanced scorecard is a management system that enables organizations to translate the vision and strategy into action. The balanced scorecard is based on theory y assumptions about people, who aspire to selfactualize.
Nine steps to success balanced scorecard institute. Design and implementation of balanced scorecard in. Use of the balanced scorecard for ict performance management. This system provides feedback on internal business processes and external outcomes to continually improve organizational performance and results. First, there is a lot of evidence supporting an argument that a balanced scorecard translates a strategy into operational terms kaplan and norton, 1996. Bpr and balanced scorecard, implementation of the reformed hmis, the fmoh now promotes kaizen, a quality improvement methodology adopted across multiple sectors in the country, as a means of. Managers are using bsc to communicate their strategy, for planning and controlling, for getting feedback and, for performance monitoring. An experience in communication affairs bureau dire dawa administration, ethiopia the balanced scorecard bsc, first created by kaplan and norton in 1992, has been developed over the last 28 years, gaining attention all over the world. Balanced scorecard bsc strategic management tool commercial banks business administration. The balanced scorecard can be effective in the public, if and only if, the current perspectives are rearranged see figure 3. Pdf ethiopia balanced scorecard overview december 2010. Research paper on balanced scorecard strategic management. The growth phase model of the ict organisation is also taken into consideration, given that the way in which performance management is set up strongly depends on the organisations level of maturity. The balanced scorecard includes performance indicators in four perspectives.
We have used balanced scorecard bsc planning and management tool to develop the five years ephis spm. Ethiopian commercial banks should implement the balanced scorecard and. Bsis awardwinning framework for strategic planning and management, nine steps to success, is a disciplined, practical, and tested approach to developing a strategic planning and management system based on the balanced scorecard. Abstract the balanced scorecard bsc, first created by.
A survey on practice and challenges of balanced score card in. For the public sector, the mission perspective must be included in balanced score card to ensure the appropriate measurement of an agency. Balanced scorecard, firm performance, service sector. Adopting the balanced scorecard for managing higher educations. Describe a practical framework for evaluating strategies. This study focuses on the commercial bank of ethiopia. Adapting the balanced scorecard into the healthcare.
It has additional perspectives other than the traditional financial perspective which include customer, internal business and. Designing a balanced scorecard for the evaluation of a local authority organization kladogeni anthoula bsc1, hatzigeorgiou alexandros 2,3 abstract. Ethiopia balanced scorecard overview december 2010 b. The institute applies best practices gained from hundreds of consulting assignments and 5,000 trainees in balanced scorecard, strategic performance. Conceptual foundations of the balanced scorecard 3. Balanced scorecard implementation and its challenges grin. Balanced scorecard in higher education opportunities and challenges an evaluation of balance scorecard implementation at the college of st.
Secondly, the theory of the balanced scorecard is explained. The balanced scorecard approach to strategy evaluation aims to balance longterm with shortterm concerns, to balance financial with nonfinancial concerns, and. First, there is a lot of evidence supporting an argument that a balanced scorecard translates a strategy into operational terms kaplan. Definition and concept an approach to the provision of information to the management to assist with. Kaplan and norton 1996a, 2001a present four barriers they claim the balanced scorecard can overcome. They argue that the main causes of poor strategy implementation are. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. The objective was to overcome the inadequacies of the traditional financialbased performance measurement tools. This study, therefore, aimed at assessing performance of the selected ethiopian commercial banks using balanced scorecard as frame work. It gives organizations a way to connect the dots between the various components of strategic planning, budgeting, operations and management. Introduction there has been a reform in educational policy, as the educational market has become liberalized. The balanced scorecard bsc is a business framework used for tracking and managing an organizations strategy.
The balanced scorecard bsc emerged as a conceptual. The balanced scorecard has become an increasingly popular performance management and measurement framework and regularly comes in the top ten in bain and companys most used annual management tools surveys. Is balanced scorecard a solution to strategy implementation problems. The balanced scorecard was developed in the early 1990s by kaplan and norton and was designed to give companies the information needed to effectively manage their business strategy. The city of charlotte, north carolina is one example from government run organizations to which is widely considered the best example of balanced scorecard success in such bureaus niven 2005. A balanced scorecard developed by robert kaplan and david norton 1992, 1993, 1996, is our research instrument identifying the overall performance in the light of vision and strategy of an. Balanced scorecard implementation and its diplomarbeiten24. In this sense, unless a given organization measures and manages its performance, it. Designing a balanced scorecard for the evaluation of a local. Designing a balanced scorecard for the evaluation of a.
The paper uses the following structure for organizing the origin and subsequent development of the balanced scorecard. Applying balanced scorecard in assessing performance of eth. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align activities to the vision and strategy of the organization, improve. In an increasing competitive world, organizations are faced with issues such as innovation, diversity. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. Ethiopia has achieved significant improvements in priority areas. Robert kaplan and david norton created the balanced scorecard approach in the.
The balanced scorecard approach inspired the european. The balanced score card bsc is one of the most popular public service reform initiatives in ethiopia that tries to translate a companys strategic direction and. The four perspectives of the current version of the balanced scorecard can still be applied in government organizations as long as they are rearranged according to governmental priorities. Bsc balanced scorecard ccsrp comprehensive civil service reform program introduction performance measures are an important aid to improve performance in all aspects of a given organization.
Factors affecting the use of balanced scorecard in. Based on these barriers, i have developed five hypotheses investigating whether balanced scorecard enables more successful strategy. The design of performance measurement of higher education institution he based on balanced scorecard, developed by translating he vision and mission into action in four perspectives namely. The purpose of this study is to assess the implementation of balanced scorecard in the offices of. The study used both quantitative and qualitative research methods to gather data from primary sources structured questionnaires and secondary sources annual reports. The balanced scorecard approach is a strategic management technique developed by robert s. Developed object oriented system for performance evaluation. Examining the outcomes of the balanced scorecard bsc as an. Balanced scorecard approach to strategy egyanagar, oer. Definition the balanced scorecard is defined as a strategic management and measurement system that links strategic. Publicsector reforms and balanced scorecard adoption. Finally, a description is given of how the balanced scorecard can be used for each. The federal government of ethiopia has introduced successive publicsector improvement initiatives in the past few decades. Now, balanced scorecard bsc is considered as a management, communication and measurement tool of addis ababa city administration.
914 1315 1222 717 877 509 522 845 1165 831 1050 158 880 1419 363 1503 374 160 860 1233 446 1479 995 143 1205 928 1532 946 925 342 897 1399 724 1280 94 837 50