Application of Balanced Score Card in Strategy Implementation at Kenya Red Cross

Abstract

The aim of the paper is to conceptualise discussion on application of the balanced scorecard in strategy implementation at the Kenya Red Cross. The Balanced Scorecard is a performance measurement tool that uses a strategy map to connect an organization's day-to-day processes to the organizational goals. It is concerned with creating a strategy to drive future direction, building in cause and effect linkages while simultaneously taking into account both financial and intangible resources that can determine success or failure. Strategy implementation is critical element in organizational functioning, but whereas most organizations have good strategies, successful implementation remains a major challenge. The study is guided by the following objectives; To determine the challenges faced by Kenya Red Cross in strategy implementation; to establish the use of balanced scorecard as a tool in addressing the challenges faced in strategy implementation at Kenya Red Cross; and to determine how the balance scorecard objectives are set to achieve the Kenya Red Cross strategic implementation. The study was conducted using a case study. Primary data collected from management and staff of the KRCS was analysed to draw conclusions. The study found out that strategic implementation at the Kenya Red Cross Society has to address challenges such as lack of funds, inefficiency in governance, poor networking with other NGOs, ineffective communications, limited capacity, unfamiliarity with organizational strategic approaches, disparity in remuneration among NGOs and political interference. In regard to the use of Balanced Scorecard as a tool in addressing the challenges faced in strategy implementation at Kenya Red Cross, the study established Kenya Red Cross Society has a balanced scorecard strategic planning and management system. The study concludes that the Balanced Scorecard at Kenya Red Cross Society (KRCS) clearly stipulates how each objective will be achieved. The society's objectives regarding stakeholders' welfare are to improve livelihoods, increase contribution to national policy, enhance community ownership and access to services. The application of the Balanced Scorecard at the KRCS had resulted in benefits such as improved efficiency of disaster management, and operations, improved provision of health and social services, strengthened organizational capacity for effective and efficient implementation of programmes, improved community livelihood and working relationship between KRCS units. The study recommends that when an organization applies Balanced Scorecard, it need to take a very close look at the organization structure and evaluate if it supports the strategies. The researcher had encountered non-cooperative respondents who don't understand the significance of the research. The researcher explained the importance of the study to them. The study recommends further research on the effectiveness of monitoring and evaluation tools used by the KRCS in monitoring and evaluating the strategic implementation using the BSC. The study also suggests carrying out the same study in other parts of the country to find out whether the same results will be obtained.