The balanced scorecard as a tool for strategy implementation at chase bank Kenya limited

Abstract

As the organization faces the challenge of strategy implementation, tools to aid this important task cannot be overlooked. The use of balance scorecard as a tool for strategy implementation appears to be increasingly important in determining the success of implementation of strategies. Chase Bank has grown as one of the Small banks build on relationship banking model to maintain and grow its market share. The Bank has adopted several strategic management tools to ensure attainment of its strategic. This study thus sought to evaluate how the Bank has applied balanced scorecard as a strategy implementation tool. The study adopted a case study research design because the unit of analysis is one institution which was Chase bank Kenya Limited. The study used primary data collected by the use of an interview guide. The study targeted 10 senior and middle level managers at Chase Bank because of their key involvement in both strategy formulation and implementation. Data obtained from the interview guide was analyzed using content analysis. The study established that the Chase bank Kenya limited has applied the balanced score card in strategy implementation and performance management. The tool was adopted as means to align performance to strategy and inculcate a performance driven culture and align the individual goals to the overall organizational goals. It was also established that the use of the balanced score card was introduced in order to involve employees in performance management since it was viewed as an objective means of performance appraisal. The study concluded that Chase bank Kenya limited had successfully applied the balanced scorecard method to implement strategy and that the balanced score card has been used as a tool to communicate and clarify strategy and directions within the business, gain consensus and therefore rally the organizational members in the same direction. It also concludes that the Balanced Scorecard 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. The study recommends that the Chase Bank should continuously improve on the balanced scorecard technique in order to remain relevant not only to its own operations but also to the changing macro-environmental dynamics. 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.