This document provides an overview of a case study on the effects of implementing a Balanced Scorecard (BSC) framework on organizational performance at Abay Bank S.C. in Ethiopia. The study aims to assess how the BSC has impacted performance across financial and non-financial perspectives like internal business processes, customer satisfaction, learning and growth. Data will be collected through questionnaires from bank employees and analyzed using statistical techniques to understand the relationships between BSC implementation and key performance indicators. The results are intended to help managers improve performance measurement and provide insights for academics and future research.

1. Effects of Balanced Scored card implementation
on organizational performance: A case study of
Abay Bank S.C
By: Asfawosen Dingama
Advisor: Habtamu Dadi (PhD)
Feb, 2022
Assela, Ethiopia

2.  In the recent wave of increased complexity and
multi-facet business environment business
Companies compete in a fierce environment..
 To survive and to achieve…it is need to develop
an effective performance measurements that
enhance…
 Performance measurement plays an important
role when quantifying the efficiency and
effectiveness of strategies and objectives
 Though, buss.co. often measure financial
performance, omitting non-financial
performance.
Background of Study

3.  But it is characterized by machinelike, physical asset–based
nature, ill-equipped to capture the value-creating
mechanisms, short term focused and dependent only on
historical data.
 Intangible assets like employee knowledge, customer and
supplier relationships, and innovative cultures are the key to
producing value in today’s economy.
 Traditional Performance measurement that only focus on
external accounting data are absolute.
 Thus implementing perf.meas. Framework that blend both
financial and non financial indicators become keys to
maintain stability and health of the banks
 A large number of performance measurement frameworks
have been designed, of which the Balanced Scorecard (BSC)
framework have been more widely accepted (Xu &
Goedegebuure, 2005).
Cont.…

4. is a strategic planning and management system
that organizations use to
 communicate what they are trying to
accomplish
align the day-to-day work that everybody is
doing with strategy
prioritize projects, products, and services
measure and monitor progress towards
strategic targets, Kaplan & Norton, 1992.
It was first introduced in 1992 by David Norton
and Robert Kaplan.
What is BSC?

5. Statement Of the problem
Abay Bank S.c is one of well known private bank in
Ethiopia w/c was stablished in 2010
Vision: To become premium bank
Mission: to satisfy the expectation of stakeholders by
providing full-fledged banking service through deploying
state-of-the-art technology and competent human
resources. Providing Superior service quality, deliver a
more personalized service to customers, continuously
inspire its employees to make difference and endeavor to
satisfy its stakeholders’ expectations are core aspects of
the bank.
The bank implemented BSC as performance measurement
framework to plan and align, to manage and measure the
performance of the bank by focusing on four main aspects
of a business: Learning and growth, internal business

6. *But, the Pm that are currently used by ECB in
general and Abay Bank particular is solely
depending on purely Fis…NBE uses the TFM to
assess performance and competitiveness of banks,
Assefa Worede 2016.
*Though, financial indicators are fraught with a
number of limitations …
 Researcher observed that there is knowledge and
evidence gap study of this topic area
 Researcher motivated…this study its popularity
and acceptability, desire to understand casual
relationship desire to fill identified vacuum in
the performance measurement.
Conti….

7. researcher will raise following research questions
 What are the effects of internal business process and
efficiency on the performance of the bank?
 What is the effect of customer service quality and
customer satisfaction on the performance of the Bank?
 What are the effects of learning and growth perspectives
on the performance of the Bank?
 What is the effects of financial perspective on
organizational performance
Research Objectives
General Objective
 The general objective of the study is to assess the effect
of Balanced Scorecard implementation on organizational
performance in case of the Abay Bank S.c.
Research Questions And Objectives

8.  To assess the effects of internal business
process and efficiency on the performance of
the bank.
 To identify the effect of customer service
quality and customer satisfaction on the
performance of the Bank.
 To assess the the effects of learning and
growth perspectives on the performance of the
Bank.
 To measure the effects of financial perspective
on organizational performance
Specific Objective

9.  Study will have significances for managers,
academicians and for researchers.
 The scope of this study will be conceptually,
geographically and methodologically delimited.
 Researcher believe that this study could not be
perfect due to uncontrollable constraints such as
lack of available and reliable data on research
area, limited access to information regarding to
the study, time limits, lack of local published
books regarding to the topic, lack of prior
research studies on this topic and the scope of
discussions.
Significances, Scopes and Limitation

10.  Research Design
 Descriptive research design will be used in this study to
obtain data that helps to determine the special
characteristics of the population under study.
 In addition to this researcher will be used cross sectional
data because data’s will be collected from participants at
one point in time
Research Approaches
 In this study researcher will apply mixed research
approach which combines both qualitative and
quantitative research methods.
Research Methodology

11.  The target population for this study will be
heterogeneous comprising 120 of Abay Bank
S.c Head office four department employees such
as human capital department, Customer relation
management department, research and business
development department and finance
department.
Sampling Techniques
 census from quantitative research design and
convenience from qualitative sampling
technique will be employed.
Target Population

12.  questionnaire and structured interview
 Questionnaire will be distributed and collected through
data sharing tool of the bank
 It also have closed- ended and open- ended sections
 Researcher devoted to apply computer or e-questioner
type to collect appropriate data
Data collection Procedure
 In order to collect sufficient data and to facilitate high
and acceptable questionnaire return rate researcher will
send the electronic questionnaire to the respondents
through ERP with a passing letter to provide details of
the research to sensitize them.
Data collection Tools

13.  It indicate that accuracy of the instrument.
 Researcher will try to ensure the accuracy of the
instrument through cross checking how well the
responses of questioner corresponded to established
theories and other measures of the same concept that
could meet the objectives of the study.
 Reliability indicate the consistency of results when
repeated under the same condition.
 In this study, the reliability of the measurement will be
achieved by checking the consistency of results across
time, across different observers, and across parts of the
test itself.
Validity and Reliability of the instrument

14.  Descriptive statistics will be applied by using SPSS for
computation of results
 Tables use to organize data for analysis
 Frequencies and percentages will be used to obtain
proportions of the data for comparison
Ethical Consideration
 ethics is an integral part of the research process to fulfil
ethical requirements for the researcher to avoid
unnecessary risks and also accord respect, privacy and
justice to the responds.
 To do so researcher respects the procedures of the
university as well as privacy of the respondents.
Data Analysis