Challenges and prospects of Balanced Scorecard Implementation in the Development Bank of Ethiopia
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Date
2014-06
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Addis Ababa University
Abstract
BSC is one of the management tools that help an organization to achieve its vision by
aligning the organization’s strategic goals to every employee’s activity. As one of
governmental financial institutions, DBE has implemented BSC in 2010. While implementing
BSC, the Bank has faced a number of challenges. This study focused on investigating the
challenges and prospects that DBE faces in general and the credit process in particular. To
collect data interview and questionnaire have been used and the method used is descriptive
method. The questionnaires are prepared for 51 credit process employees and 110 bank’s
credit customers. The interview is for the top management official of the bank who works in
credit area and support credit area. Out of the administered questionnaire, only 23
employees and 50 customers managed to return. The results that come out of the
questionnaires and interview is analyzed using descriptive method of analysis and presented
in the form of tables and graphs. The finding shows that the major challenges that DBE faces
is emanated from lack of commitment of top management officials , lack of understanding of
the tool, early cascading and considering the tool more as a tool of measurement rather than
a tool for strategic management. However; the tool is also helps the organization by
increasing the organization performance, by communicating the organization mission, vision
and strategic objective to employees, by creating team spirit and others. So to avoid the
challenges it is recommended that the Bank should give training about the tool, the Bank
should define the measurements, and after being sure that the metrics measure the activities
of the business units and the selected measure is easily quantifiable then attaching it with
benefits will be wise in order to achieve what is set in the future
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Keywords
Bank of ethiopia, Implementation