Factors affecting the implementation of a Balanced Scorecard in a South African financial organisation
Date
2018
Authors
Banjo, Olanrewaju Isimeme
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Abstract
The research carried out in this paper sought to identify the factors that promote or
hinder the implementation of the Balanced Scorecard within the South African
financial industry.
The literature review explained the role of the Balanced Scorecard in mapping out
and implementing corporate strategies via identification, monitoring and
measurement of quantitative and non-quantitative factors that enhance corporate
performance, and thereafter, described ten factors that promote and ten factors that
hinder the successful implementation of the Balanced Scorecard within companies.
The researcher conducted 12 structured interviews of stakeholders of the Balanced
Scorecard in a South African financial organisation for the purpose of extrapolating
evidence used in reaching conclusions contained in this report. A quantitative
analysis of the responses and findings from these interviews was performed and the
themes discovered provided the researcher with better knowledge of the factors that
promote or hinder the successful implementation of the Balanced Scorecard.
The research findings indicate that obtaining effective top management commitment,
agile organisational culture, identification of BSC objectives, effective communication
style of management and linking BSC scores with the reward system are the five
most critical factors that can impact the effectiveness or otherwise of the Balanced
Scorecard to achieve its purpose within financial organisations. Further findings are
explained in the research.
The outcome of this research therefore provides ample evidence to company
directors, managers and other stakeholders of factors that require their focused
efforts to stimulate the successful implementation of the Balanced Scorecard. It
equally indicates other factors that hinder the Balanced Scorecard from fulfilling its
promises of strategy formulation and alignment, as a means of improving overall
corporate performance of South African financial institutions.
Description
MBA Thesis
Keywords
. Organizational effectiveness -- Measurement. Performance -- Measurement. Financial institutions -- South Africa.