The Research On The Construction And Application Of The Balanced Scorecard Performance Measurement System

Performance measures as the important component of company's strategic management have been the focus of the theory and business circles. People hope to setting up one perfect performance measurement system to realize the effective strategic management. The balanced scorecard system just meets this demand. It is one system that combines performance measures with strategic management, it is one system that makes senior managers to measure the performance of the company quickly and comprehensively and that enable company to focus on the traditional financial results as well as the strategic future performance reason indicators.The balanced scorecard as a set of brand-new strategic performance measurement system supplemented traditional financial measures with criteria that measured performance from three additional perspectives—those of customers, internal business processes and learning and growth. These four perspectives form the basic frame of the balanced scorecard which remedies the weakness of current sole financial measurements. They also meet the requirements of the information society and strategic management of companies. In addition, the balanced scorecard still emphasizes a kind of balanced idea, it pays attention to the balance between the financial and non-financial indicators, it pays attention to the external and internal balance of organization, it also pays attention to the balance between the result and reason indicators. When constructing the balanced scorecard system, we must treat the strategy of company as the start and determine the strategic goal from four perspectives—those of financial, customers, internal business processes and learning and growth according to the internal demand of strategic management. Furthermore, we should make a fair and scientific evaluation by dividing them into the strategic indicators. During the process of measuring, we must monitor and feedback it constantly, it thus guarantee the operation of company to make profit.The current key indicators chosen to measure the performance in our country is the return on net assets. Such traditional financial accounting measures have not yet met the need of strategic management. The balanced scorecard has great reference function for the improvement of our current performance measure system. However, its application in our country is just a beginning and it faces such obstacles as the revision of accounting regulations, improvement of staffs, division of strategic objectives and improvement of information system, etc. So we need to introduce it, grope it, explore itand improve it step by step with a combination of our companies' characteristic. In addition, we should take some feasible measures, such as strengthen its propaganda, combine it with the incentive mechanism and budget, pay attention to the choice and improvement of the information system, etc. In this way, we could maximally assure the successful practice of balanced scorecard performance measurement system.This article has broken through the limitation of simple introduction and analysis to such a brand-new theory of balanced scorecard in the past, combined it with our companies' performance measurement system, thus offer some reference and help to the application and development of such performance measurement system in our country's company. Following the updating and improvement of the balanced scorecard, no matter in theory or at practice, it will exert a deep influence to the development of our country's performance measurement system.