Balanced Scorecard as a Tool for Strategy Implementation at the Kenya Private Sector Alliance

Abstract

Strategic management has become a key function in all organizations, they operate in unpredictable environments hence making them to develop strategies that are to help them curb the economic and environmental changes in order to gain competitive advantage in the market. Good strategies that have been well implemented have always been known to boost overall profitability of organizations. The study covered the use of the balanced scorecard at KEPSA as a tool for strategy implementation. Interviews were conducted on the lead officers in the various functional units. Information was also obtained from the organizational work plans and the strategic plan for the current and previous periods. In depth data analysis was done on the data collected and results drawn. The organization extensively incorporates the perspectives of the BSC in its strategy implementation process and also in development of its work plans. The financial perspective assists in recasting the financial position of the organization. Through this, the organization is able to know whether it will be able to implement the strategies developed. The internal business process defines the relationship of activities between the departments the organization has well defined policies and procedures defining activities of each functional unit. The customer perspective defines the relationship of the organization and its customers and what the organization should do to gain competitive advantage in the market. KEPSA has employed a fulltime research analyst who monitors the market changes and advises on any changes in the market appropriately. The Learning and growth perspective helps identify the knowledge gap and ways of filling the gap this helps foster creativity and innovativeness. KEPSA as an organization has adopted the BSC in carrying out its activities. The perspectives of the study have assisted in developing work plans for the organization and also assisted in tracking the strategy implementation process. The organization is able to link the various issues it is dealing with and track thematic issues to ensure that they are fully resolved. There is room for researchers to research further on the benefits and challenges of using the BSC in the organization. Other scholars can also research on corporate governance and strategic management in KEPSA.