Challenges And Prospects Of Balanced Scorecard Implementation In The Development Bank Of Ethiopia

BSC is one of the management tools that help an organization to achieve its vision byrnaligning the organization’s strategic goals to every employee’s activity. As one ofrngovernmental financial institutions, DBE has implemented BSC in 2010. While implementingrnBSC, the Bank has faced a number of challenges. This study focused on investigating thernchallenges and prospects that DBE faces in general and the credit process in particular. Torncollect data interview and questionnaire have been used and the method used is descriptivernmethod. The questionnaires are prepared for 51 credit process employees and 110 bank’srncredit customers. The interview is for the top management official of the bank who works inrncredit area and support credit area. Out of the administered questionnaire, only 23rnemployees and 50 customers managed to return. The results that come out of thernquestionnaires and interview is analyzed using descriptive method of analysis and presentedrnin the form of tables and graphs. The finding shows that the major challenges that DBE facesrnis emanated from lack of commitment of top management officials , lack of understanding ofrnthe tool, early cascading and considering the tool more as a tool of measurement rather thanrna tool for strategic management. However; the tool is also helps the organization byrnincreasing the organization performance, by communicating the organization mission, visionrnand strategic objective to employees, by creating team spirit and others. So to avoid thernchallenges it is recommended that the Bank should give training about the tool, the Bankrnshould define the measurements, and after being sure that the metrics measure the activitiesrnof the business units and the selected measure is easily quantifiable then attaching it withrnbenefits will be wise in order to achieve what is set in the future

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