Application of Balanced Scorecard in Performance Measurement at Essar Telecom Kenya Limited

Abstract

This research was conducted to establish the application of balanced scorecard at Essar Telecom Kenya Ltd. This was done with the view that the balanced scorecard as a tool used in strategy development and implementation is an emerging concept designed to give managers the information they need to effectively manage their business strategy. The tool is a performance measurement system that considers not only financial measures, but also customer, business process and learning measures. The BSC is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications and monitor organizational performance against strategic goals. The study also looked at the application of the BSC in performance measurement at Essar Telecom Kenya Ltd and the challenges it has been experiencing in the implementation of BSC in its strategic planning and management. The study collected data from the heads of departments of the following departments; Technical, Information Technology, Customer Experience, Finance, Sales, Marketing and Human Resources. The method used was personal interviews using a guide with open ended questions. The data was analyzed using frequencies and percentages values. The study revealed that the company primarily uses balanced scorecard as a strategy implementation and performance measurement tool as part of its strategic management initiatives. In the findings 47.6 % of the respondents agreed to a great extent that the financial, customer, innovation and change performance measures were used in the company, 28.6% were moderate, 21.4 least extent and only 2.4% did not agree at all. Based on the findings of this study, Essar Telecom Ltd should provide enough resources especially for funding further comprehensive sensitization on the importance of balanced scorecard in relation to strategic implementation. There is also need for vigorous capacity building program to improve the appreciation and usage of the BSC to tap on the gains so far made.