EFFECT OF BALANCE SCORECARD STRATEGY ON PERFORMANCE OF PUBLIC SECONDARY SCHOOLS IN NAKURU COUNTY, KENYA

Abstract

Balance Score Card (BSC) is multi-dimensional performance management able to measure both fiscal and non-fiscal indicators for the purposes of improving firms‟ performance. Balance Score Cardhas been used by firms to align their activities to strategic outcomes. The study assessed application of the Balance Score card Strategy on performance of public secondary schools in Nakuru County, Kenya. The study analyzed the effect of; stakeholders involvement (customer focused strategy), process improvement (internal business improvement strategy), continuous skills development (growth strategy) and strategy measurement (financial capability strategy) on performance of public secondary school performance. The study adopted descriptive research design which tested variables the way they occur in natural environment without interfering with them. The study targeted261public secondary schools principals. The study adopted the sampling formula recommended by Nassiuma (2000) which is representative and recommended for not very large population. Out of 261 target population, a sample of 78 was the main source of information for the study. The study was descriptive statistics including mean and inferential statistics like Pearson Correlation to test the relationship between each of components of Balance Score Card and schools‟ performance. Regression model was used to establish the combined influence of the four components of Balance Score Card and schools‟ performance. The analyzed data was useful in knowing the effect of application of the Balance Score card Strategy on performance of public secondary schools. The study established that two BSC strategies contributed to school performance, that is internal business improvement and financial capabilities strategies whereas customers focus and learning and growth strategies did not contribute to the schools‟ performance. The study recommends that the Ministry of Education should fully adopt Balanced Scorecard strategy within its policy as a means of improving school performance. Second, the study recommends that the County Education Directors should be the change agents that the ministry should use to implement the BSC in public secondary schools for improved schools performance.