Challenges of Balanced Scorecard Measurement, Cascading and Evaluation in the Case of INSA
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Date
2015-02
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Addis Ababa University
Abstract
This study assessed the challenges faced while implementing the balanced scorecard system
particularly in measurement, cascading and evaluation tasks in the case of Information Network
SecurityAgency (INSA). The study tries to evaluate the challenges faced by the Agency in
implementing the tasks as compared to the standard literatures of the system. The study adopted
descriptive research with a primary purpose of assessing challenges faced by the Agency in
implementing the balanced scorecard as their performance and strategic management system. In
order to assess the implementation status, the study has been conducted by designing five-point
likert scale questionnaires and semi-structured interview questions.
The total sample size of the questionnaires is 286 involving team managers and permanent non-
management employees of the Agency. In this case the study adopted probability sampling
particularly stratified random sampling technique based on size of positions held (middle
management and non-management) in each department (as strata) to select 286 sample
size,where as in the case of semi structured interview the study adopted purposive sampling
technique to select 5 respondents who have the working knowledge of the system.
Accordingly the study identified the challenges such as insufficient KPI to measure objectives,
deficiency in assignment of measurement data validation body, boss influence on evaluation,
absence of clear attachment between high performance and reward, and lack of continuous
communication on changes of the middle level scorecard to lower level as the challenges in the
study.
Based on the findings the study proposes to the Agency to conduct intensive awareness creation
on how to produce relevant and sufficient KPI so as to capture full spectrum of the objectives, to
assign measurement data validation body to each measurement so as to reduces and- bagging
or data gamming, to communicate clearly changes in higher tiers scorecard to lower tiers and
further more to attach visibly the reward-system with performance result to effectively take
advantage of the Balanced Scorecard system.
Key words: Balanced scorecard, Performance measurement, Cascading, Evaluation
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Keywords
Balanced scorecard, Performance measurement, Cascading, Evaluation