Browsing by Author "Tsemru Alemu"

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    Challenges and Prospects of BSC Implementation in Ethiopian Airlines
    (A.A.U, 2024-12-07) Tsemru Alemu; Gemechu Waktola(PhD)
    Originated by Kaplan & Northern in 1990, Balanced Scorecard has become one of the most widely accepted and used performance measurement and Strategic Management and translation tool. BSC is a model with four perspectives having set of measurements for each ones. Its theoretical theme is basically to create a balance between financial and non-financial measures and then to achieve a comprehensive approach to manage the organization in general and its activities in particular. There have been ample of studies conducted on the theoretically sound concepts of BSC and the benefits that an organization could derive from. However, the practical aspects of and challenges encountered in implementing in specific socio-economic environment seems getting insufficient literature coverage. It Would, thus, very interesting to examine the specific challenges a company, like Ethiopian Airlines, actually encounters while deciding to adapt and implementing BSC and look for rooms/ prospect for improvement by making it better applicable. This case study is based on the information gathered from semi-structured interview of three most senior management persons and semi-structured questionnaires disseminated to HR Managers, Operational Directors and Managers of MRO and Ethiopian Aviation Academy. Based on the discussion and the written responds of purposeful non-random samples, the writer of this paper wanted to address the challenges and prospects of Ethiopian Airlines in adapting and implementing Balanced Scorecard. The empirical materials are analyzed in the form of qualitative study using more of interactive approach. Academic literature about Balance Scorecard have been reviewed in theoretical part of this study. Considering it as a system, this study attempted to establish the relationship between a company and Balanced Scorecard system . The empirical study. result revealed that Ethiopian Airlines took longer time than required to actually implement BSC as its performance management and strategic execution tool. It is a way behind mainly because the level of preparation and BSC developmental process in conceptualizing its very essence to all involved were not sufficiently explored to generate the desired positive impact. Based on the BSCs theoretical review and the empirical study result, the writer has concluded that implementation of BSC in Ethiopian Airlines needs to be deeply nurtured so that conceptualizing its core essence would enable those involved to properly and effectively implement it. It also need to strongly work on aligning BSC with long-term strategic implementation process by concretely applying Kaplan and Norton 's four step model of how to manage the company strategy.