The Process and Experience of Implementing the Balanced Scorecard Technique: a Case Study of Stanbic Bank Ltd, Nairobi

Abstract

This study aims at establishing how the Balanced Scorecard as a Performance Measurement tool was implemented at Stanbic Bank, Kenya. The Balanced Scorecard is a new Management technique for measuring business performance by applying the financial as well as non-financial performance measures. It is an improvement over the traditional performance measurement technique, which only recognised the financial measures. However, in Kenya the concept is still new and most organizations still don't even know about it, while most of those who have heard about it still do not have adequate information on how it can be implemented and its effects. The study reported here was conducted in the months of August and September 2002 using a case study ofStanbic Bank Kenya. The objectives of the study were to find out- • How the Balanced Scorecard technique was communicated to the employees of Stanbic Bank, Kenya. • The process (key activities) and strategies used by the Bank to implement the Balanced Scorecard System and • The experiences and the perception of the employees on the implementation of the Balanced Scorecard System. The data was collected through two sets of questionnaires (one completed by the leader of the implementation team and the other completed by the unionisable staff representative). A structured interview schedule was also used. The data was then analyzed through content analysis, comparing the data from the three data collection instruments. A summary and conclusion was then drawn after discussing the research findings. From the study, it was established that Stanbic Bank had systematically undertaken specific steps in implementing the system. Effective communication of the concept to the employees was a key activity in the pre-implementation stage. It was also established that at the initial stages of implementing the system, most of the Bank's employees were skeptical about the system. The Bank has in this respect put in place certain strategies in order to positively change the attitude, increase awareness and facilitate acceptance of the system among the employees. Such strategies include; training and coaching, creating commitment at the top, linking the new systems with effective compensation or reward program, and breaking down of organizational barriers. In his conclusion, the researcher outlines recommendations for effective implementation of the system. The researcher also recognizes the limitations of the study and suggests areas of further research.