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The balance score card as a strategic plan monitoring and evaluation tool: A practical approach

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  • Susan Wanuri Ngure

    (Dedan Kimathi University of Technology. Department of Business and Management)

Abstract

This paper discusses how a Strategic Plan (SP) can be monitored and evaluated using the balanced scorecard (BSC). The BSC is a useful tool that is based on four measures: the financial measures emphasize cost efficiency and high profitability; the customer measure considers the ability of the firm to provide quality services to the customer; the internal business processes measure focuses on the internal processes that lead to financial success and customer satisfaction, while learning and growth measure include the ability of the employees’ quality of information systems, leadership, the culture, and alignment to teamwork processes. This paper employed both quantitative and qualitative methods to collect data. The SP’s operational objectives were aligned with the four measures of the BSC. Each measure was given a score that formed the basis of evaluation and analysis. The results show that the SP scored an aggregate of 71%, which is a fair score. The highest score was found in the learning and growth measure, followed by internal processes then the customer service, and lastly the financial measure. The scores are consistent with a non-profit making enterprise. This paper concludes that the BSC is a perfect tool for the evaluation of an SP.

Suggested Citation

  • Susan Wanuri Ngure, 2022. "The balance score card as a strategic plan monitoring and evaluation tool: A practical approach," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 4(2), pages 37-49, April.
    • Handle: RePEc:adi:ijbess:v:4:y:2022:i:2:p:37-49
    DOI: 10.36096/ijbes.v4i2.315
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    References listed on IDEAS

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    1. Muhammad Rafiq & Saif Maqbool & José Moleiro Martins & Mário Nuno Mata & Rui Miguel Dantas & Shumaila Naz & Anabela Batista Correia, 2021. "A Study on Balanced Scorecard and Its Impact on Sustainable Development of Renewable Energy Organizations; A Mediating Role of Political and Regulatory Institutions," Risks, MDPI, vol. 9(6), pages 1-18, June.
    2. Eva Benková & Peter Gallo & Beáta Balogová & Jozef Nemec, 2020. "Factors Affecting the Use of Balanced Scorecard in Measuring Company Performance," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    3. Robert S. Kaplan, 2010. "Conceptual Foundations of the Balanced Scorecard," Harvard Business School Working Papers 10-074, Harvard Business School.
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