A Challenges and Achievements of Balanced Scorecard in Oromia Regional State: A Systematic Literature Review.

Abstract

The purpose of this study is to conduct systematic reviews of existing empirical literature to synthesize and summarize BSC implementation achievements, challenges, opportunities, lessons, and gaps and thus suggest some policy options. A systematic literature review approach was applied in this study. Accordingly, a comprehensive search for relevant studies in the area of BSC was conducted to identify, appraise and synthesize in line with the objectives of the reviews. About 15 published and 2 unpublished research works were consulted. Recently published works, the relevance of the studies to the Oromia public sectors, the journal's reputation, the BSC implementation, adoption, challenges, practices, BSC issues, BSC design, and application, etc. from employees, management, and stakeholders' perspectives were used as the protocol to identify and select studies for the systematic reviews. The selected studies are heterogeneous in methodology and design, but an attempt was made to extract the same core information against predetermined study objectives. The reviewing of different BSC research papers shows that even if BSC implementation faces challenges in general, some success factors were registered after the implementation of BSC in some public sectors in Oromia Regional such as a shift in mindset from a routine-tasks oriented operation towards a strategic oriented performance management system. Due to the implementation of a balanced scorecard, the organizations' performance was measured from citizens, financial, internal process and learning and development perspectives and evaluation system were improved and strategic objectives of the organizations were linked to the objectives of departments, teams, and individuals. In contrast, the lack of linking performance with rewards and high turnover rate, lack of support from the top management, problems in cascading BSC, setting a clear strategy, performance drivers and indicators, and reforms driven by political ideology were established as an outstanding challenge in the BSC implementation process. The studies have several implications for decision-makers and practitioners. The mechanisms through which change tools are consistently put into practice and become the culture of the organization need to be introduced. Actors should carefully consider the political climate and local circumstances while developing civil service reform strategies. An approach that combines competitive entry, stronger assessments of actual skills, and greater learning opportunities are imperative to upgrade civil servants' competencies and enhance performance. To achieve the desired goal and sustain the BSC initiative, it should be contextualized, demand-driven, and fit to the real needs of the organization (tailor-made approach), empowering the local units, simplifying reform tools, conducting an impact assessment on the reform initiatives and continuous training and communication are advised as a path forward.