Practice And Challenges Of Balanced Scorcard Implementation In Case Of Ethio Telecom, Addis Ababa, Ethiopia

Abstract

This research was conducted on practices and challenges of balanced scorecard implementation in case of ethio telecom, Addis Ababa, Ethiopia. The study has employed descriptive research approach based on questionnaire developed. Census survey was used as a sample technique. 181 questionnaires were distributed to respondents and 178 (98%) questionnaires were returned. But, 175 (96%) were valid and used for analysis. Closed and open ended questionnaires were distributed to the sample respondents. In addition to questionnaire based data collection, 12 managers were interviewed. The data was analyzed using descriptive (mean, frequency and percentage) statistics using SPSS. The findings showed that BSC doesn’t considers lack of resource, fails to identify performance measurements as two-ways process between top-levels and operational levels’ measures, incorporate stakeholders who are not in the BSC such as suppliers and public authorities, and evaluate the significant changes in external conditions and an ineffective to corporate sustainability. Further, interview results identified challenges that the company face while implementing the balanced scorecard and limitations of the current evaluation system at the enterprise division such as limited support of top management members, limited knowledge of employee about strategic issue and its outcome, limited knowledge of performance drivers and performance indicators among staffs, perception problem and lack of alignment with the strategic plan. So, the researcher recommends that strategy and action to support implementation of balanced scorecard, shared with every member of the company, before validating the plan and make cascading to employees, top management has also to check its resources and interfere to assign the needed resources to achieve the target.