Balanced Scorecard and Performance: a Case Study of Co-operative Bank of Kenya

Abstract

The study sought to analyze the use of balanced scorecard as a performance improvement tool at the Co-operative Bank. The specific objectives of the study were to establish the factors affecting implementation of BSC as a performance improvement tool and to determine the impact of BSC on performance at cooperative bank of Kenya. The study used longitudinal analysis/time series analysis. The study also adopted Ex post facto research design. Both primary and secondary data was used. The study used stratified random sampling design. The study analysis was analyzed using quantitative and qualitative analysis. The analysis found that a fifth of the respondents that BSC has triggered increased profits, a fifth indicated it has fueled Increased customer base, a sixth felt that the BSC has been a contributor to advanced technology, a sixth indicated that it has enhanced Professionalism, while a few felt that it has been a key to economic growth a tenth of the population indicated that it enhances Competitive edge. The study found from half of the respondent that there are a number of factors that affect balanced scorecard at cooperative bank of Kenya. The study concluded that balances scorecard is very critical on performances measurement of cooperative bank. The study recommends that: Cooperative bank should integrate framework for describing and translating strategy using linked performance measures in four balanced perspectives: Customer, Internal Processes, Learning and Growth, and Financial. It was recommended that Co-operative Bank of Kenya should engage balanced scorecard as their primary performances measurement tool a factor that will enhance their performance, increase their competitive edge and enhance their customer satisfaction.