The document discusses the balanced scorecard (BSC) and its role in transforming the Ethiopian civil service. It describes how BSC was developed as a strategic planning and management tool to provide a balanced set of performance measures. The document then explains why Ethiopia's civil service institutions are implementing BSC to create strategically aligned, sustainable, and results-oriented organizations. Some challenges to implementing BSC are also presented, such as lack of legal framework and change management capacity, as well as recommendations to address them.

1. Society of Human Resource
Management in Ethiopia – monthly
Forum
The role of BSC in transforming the
Ethiopian Civil Service
( Adebabay Abay )

2. 1.The rise and development of BSC1.The rise and development of BSC
1.1 As a measurement & Management tool
 Architects are Robert Kaplan & David Norton ( early in 1990s ) ;
 The rise of the contribution of intangible assets to the economy
– 70 % share in case of developed countries like USA )
 The nature of healthy organization changes from uni-
dimensional measures to balanced measures - from finance
alone to four conventional measures namely , finance as it is ,
Citizens or customers , internal business process and learning
and growth ;
 The tool looks the healthiness of organizations in a balanced
fashion : As a result it kept balance among the following :
 Financial & non financial measures ;
 intangible & tangible measures ;
 Short term & long term measures / objectives ;
 Lagging & leading indicators ; and
 External and internal performance perspectives ;

3. 1.2 So what is Balanced Scorecard
 first generation of BSC had been focused on
balanced measures ;
 The second and the latest generation is focusing
on strategy execution ;
 It is an improved strategic planning process
focusing on the most important & few things ;
 A change initiative serving as a transformational
tool ;
 Logically breaking strategy into actionable
strategic objectives ;
 A communication tool to make a strategy every
bodies daily job ;

4. Barrier to Implementing Strategy inBarrier to Implementing Strategy in
Traditional ApproachTraditional Approach
Vision Barrier: The vast majority of
employees do not understand the organization’s
strategy. Only 5%of the employee understand
the strategy
People Barrier: Only 25% of the managers
have incentives linked to strategy
Management Barrier: 85% of executive
teams spend less than one hour per month
discussing strategy.
Resource Barrier: 60% of organization do
not link budget to strategy.

5. Increase the value of intangible assets
38% in 1982
62% in 1992
75% Today
An integrated strategic planning
and management system,
not just a measurement system

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9. 2.Why Ethiopia Civil Service Institutions build
and implement BSC
To create strategically aligned
organizations;
For sustainable performance improvement ;
To understand and address citizens’ needs
and preferences ;
 To align national policies & strategies with
organizational performance ;
 To realize result oriented organizations ;
 To use , develop and retain intangible assets
mainly the HR to bring about tangible
results ;

10. 3. Main prospects
 Helping leaders to focus on critical few things ;
 Assist to align national targets with
organizational targets so as moving the nation
to same bigger goal ;
 helping to question the result worthiness of
activities ;
 bigger pictures might recognized by employees
at all levels ; It is a culture change ;
 Serve as a strong communication tool to
create organizational and national consensus ;

11. Help the organizations to focus on Human
capital Development ;
Realize accountability , transparency and risk
taking culture in the civil service ;
Increase leaders capacity on change
management ;
4. Challenges
 Absence of legal framework – as a result
loosen accountability ;
Lack of road map to implement the change
initiative ;
Lack of real leadership commitment ;
Lack of capacity to Customize the architect ;

12. A danger of taking BSC as a measurement instrument
alone ;
 A challenge of changing attitudes of people in a
short period of time ;
5. Recommendations
 Legal framework ;
 Clear and workable road map ;
More adapted training manual – adapted to the
civil service of Ethiopia ;
 Capable change agents at all levels ;
 Empowering institutions to manage change ;
 Accountability and award sytems ;
 Creating national learning forums and networks ;

13.  Involving all stakeholders in the process
of change management – at national ,
sectoral and organizational levels ; -
creating a council of exchanging ideas and
building censuses ;
The End