Challenges of the Implementation of Balanced Score Card in Ethiopian Insurance Corporation

Organizations compete in a very complex and challenging context that is as a result many
factors from globalization, aggressive competitors and rapid change in technology among
others. For organizations to gain and maintain a competitive edge they must be able to
develop and execute strategic plans with precision. One of the major tools that help
achieve this is the balanced score card. The balanced score card was developed in early
1990’s by Kalpan and Norton and was designed to give companies the information
needed to effectively manage their business strategy. It has additional perspectives other
than the traditional financial perspective which include customer, internal business
process and learning and growth. The implementation of the tool however, has been a
challenge to many organizations. Hence the main purpose of this study was to determine
challenges of the implementation of balanced score card in Ethiopian Insurance
Corporation. The research approach used in this study was the mixed methodology, in
which the qualitative as well as the quantitative research methods were used. In the
qualitative research method interviews were conducted from the BSC project team
members where as in the quantitative research questionnaire is used for the employees of
the corporation. Some of the benefits of adopting the tool were that it enabled staff to
focus on measurable targets, ability to focus on key objectives, assisted on putting
emphasis on specific key measures, helps in monitoring of key performance