The Balanced Scorecard as Performance Management Model

Ethiopia has conducted several poverty reduction and growth programs. It implemented sound macroeconomic policies and significant structural reforms and privatized many public enterprises. Enterprises such as electric power, water supply, and transportation and tel-communication, are still owned by the government. These enterprises are responsible for generating a significant share of gross national product for the countries' economic growth. However, analysis of the results of these enterprises shows that some are performing relatively well while others are decreasing in their performance. The research described in this paper shows that this is caused by the fact that many of the public enterprises are not enough performance oriented. It is also shows that those that are, perform better than are not. Furthermore, the research shows that the public enterprises are seriously interested in using the Balanced Scorecard. However, use of the scorecard will bring about considerable changes, and it is therefore essential to make sure the organizations are ready to this. The pre-conditions for a successful implementation have been identified in this paper.