Application of the balanced scorecard in strategy implementation at Barclay bank of Kenya limited

Abstract

A key challenge in strategic management is strategy implementation. Several organizations come up with excellent strategies that end up never being implemented for one reason or another. When adopted, the balanced scorecard (BSe) can be used by organizations to manage their strategy over their long run as well as implement strategies across their businesses. It can provide a systematic process to implement and obtain feedback about strategy. This study set out to establish how Barclays Bank has used the balanced scorecard to implement strategy across its business. It also ~et out to establish the challenges Barclays has faced in the implementation of its strategy through the use of the balanced scorecard. Fifty respondents drawn from all levels and functions of the organization (senior management, middle management and unionsable staff) were interviewed and their responses analyzed by way of content analysis. Secondary data was obtained from the banks strategic plans, performance development articles and in house journals. 4> The study established that Barclays Bank has used the balanced scorecard framework to provide a connection between strategic business performance and individual employee performance. The bank has extended the balanced scorecard to reward. recognize individual performance, provide incentive compensation plans and align individual objectives towards a common goal. The balanced scorecard has firmly been embedded in everyday work making strategy implementation everybody's business and directing the organization In one direction. The staff of Barclays Bank of Kenya arc dispersed across the entire country thus making it difficult to obtain respondents from upcountry. Most of the respondents were therefore based around Mornbasa and Nairobi. Accessibility to some respondents was also a major limitation to this study as some were either too busy or not readily available. v The balanced scorecard has mainly been adopted amongst multinational and foreign based organizations. More research therefore needs to be carried out on local Kenyan organizations that have adopted the balanced scorecard and how they have used it to implement their strategies.