CHALLENGES AND PROSPECTS OF BALANCED SCORECARD IMPLEMENTATION IN PUBLIC SECTORS ORGANIZATIONS: THE CASE OF KAFFA ZONE, SOUTHERN REGION

Abstract

The main purpose of this study is to assess the challenges and prospects of balanced scorecard implementation in the public sectors organizations: The case of Kaffa zone southern region. To achieve this objective, the study employed descriptive survey design. In order to select samples, multistage and purposive sampling techniques were used. Data were collected using questionnaire, interview and different document review. The Data was analyzed using both quantitative and qualitative analysis methods. Quantitative data was analyzed using frequency, percentage, mean and standard deviation with the help of SPSS (Statistical Package for Social Sciences) version 21. Data obtained from open ended questions and key informant interview was analyzed by narration and triangulation method in order to substantiate the quantitative data.The analysis of the data disclosed that balanced scorecard was not properly implemented in the public sectors of Kaffa zone. Balanced scorecard concept clarity, level of executive leadership, education and training, planning and communication, perception of employees, employee participation, balanced scorecard automation, performance monitoring and evaluation were identified as the challenges for weak implementation of balanced scorecard system. Lack of proper awareness on BSC among the stakeholders; lack commitment from heads and political leaders; lack of confidence and reliance on the advantages and effectiveness of BSC; lack of control from government and immediate leadership; considering BSC as political agenda than scientific approach to a business; lack of evidence based performance evaluation are causes for the challenges identified. On the other hand, Balanced scorecard implementation in the study area could be enhanced due to prior institutionalization of business process reengineering, internalization of performance necessity among employees for reform are some of the prospects for balanced scorecard implementation. It was concluded that balanced scorecard was not properly implemented in the public sectors of the study area due to different challenges. Thus, the researcher recommended that stakeholders and leadership need to work hard in order to institutionalize balanced scorecard in the public sectors of Kaffa Zone.