The Effectiveness of Balanced Scorecard in Creating Strategy- Focused City Administration (The Case of Bole Sub City Trade Office)

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Addis Ababa University


The main aim of this research paper is to identify the effectiveness of the Balanced Scorecard in creating a strategy focused city Administration by taking the case of Bole Sub City Trade Office. And according to Kaplan and Norton companies that have adopted the Balanced Scorecard, among other things, have been able to create a strategy – focused organization by following five common principles, which they refer to as principles of a strategy – focused organization, these are: translating the strategy to operational terms, align the organization to strategy, making strategy everyone’s every day job, making strategy a continues process, and mobilizing change through executive leadership. Therefore, to evaluate how far the Balanced Scorecard has enabled the office to create a strategy – focused organization, the researcher forwarded five main questions that will help answer whether or not the above stated principles (except principle two, which is applicable to conglomerate type of organization), are at work. And it was possible to conclude that, there are some indications of the Balanced Scorecard’s effectiveness in making the Bole Sub City Trade Office a strategy – focused organization. However, a very significant proportion of the key indicators or principles of a strategy – focused organization are not at work in the office. Some of the major causes of the challenges the office faced in using the Balanced Scorecard to create a strategy – focused organization are: Lack of skilled man power, man power turnover, lack of resources, politicization of public administration, lack of top management commitment, and lack of adequate knowledge in the subject matter. In line with this, it was recommended that the Bole Sub City Trade Office should acknowledge the system had in design and implementation stage and take corrective measures.


A thesis submitted to the School Of Graduate Studies of Addis Abeba University in Partial fulfillment of the requirements for the Degree of Masters in Public Management and Policy (MPMP) in the Department Of Public Administration And Development Management


Balanced Scorecard, City Administration