Evaluation of the Application of Balanced Scorecard in the Ministry of Foreign Affairs and International Trade in Kenya

Abstract

With an increasingly enlightened and empowered citizenry, the demand on Public Service Organizations to deliver quality services in a cost effective way has never been more pronounced in Kenya than now. Despite most public Sector Organizations developing glossy Strategic Plans, this has not been matched by performance in the, especially in the management of public resources and the delivery of services which is partly attributable to lack of effective strategic Management tools. One of the more popular tools is the Balanced Score Card. This study set out to evaluate the application of the Balanced Scorecard in the Kenyan public Sector. Specifically, the study sought to examine the extent to which the Ministry of Foreign Affairs & International Trade applies the four perspectives of the BSC in its strategic planning and the impact this has on its performance as well as the challenges. Chapter one presents the background of the study and discusses the concept of Balanced Score Card, performance management in Kenya and an overview of the Ministry of Foreign Affairs and International Trade where the research is undertaken. The chapter also sets out the research problem, research objective and outlines the value of the study. Chapter two present both the theoretical and empirical literature. The theoretical foundation of the study discusses the Resource Based Theory and the Stakeholder Theory while the empirical literature focuses on the origins and evolution of the Balanced Scorecard, the Balanced Scorecard perspectives, challenges in the implementation of the Balanced Scorecard and the research gap. Chapter three presents the methodology adopted by the study. The study adopted a case study research design targeting desk officers in charge of Performance Contracting within departments, directorates and units at the Ministry of Foreign Affairs and International Trade. The data was collected using an interview guide and analyzed using content analysis. The study concluded that though the BSC offers a lot of potential for effecting strategic planning, monitoring and evaluation, the Ministry has not optimized assess its strategic planning and generate results that translate into actionable policies. The Ministry of Foreign Affairs and International Trade has been moderately successful in evaluating of customers perspectives, internal processes, learning and growth and financial performance. The study recommends improved understanding of the balanced scorecard across all organizational units, full support of executive on implementation of BSC, more education and training on BSC, adequate IT support, adequate personnel responsible for implantation of BSC, implementation of BSC across all organizational units, employee commitment to performance evaluation.