Balanced Scorecard Application: Benefit-Cost Analysis

Since the naissance, the Balanced Scorecard (BSC) arouses great influence in theory research. More and more enterprises, especially in the west, apply it to performance management. BSC, which matches the new economy, breaks through the localization of traditional performance measurement. BSC can help enterprises design the strategy map to overcome the obstacle of strategy implementation and take strategy into action.However, some domestic enterprises fail in BSC application. So it is doubted that BSC does not fit Chinese enterprises. Analyzing BSC implementing benefit and cost, this thesis points out aggrandizing anticipating benefit and neglecting cost causes to BSC application failure.BSC implementation cost can be classified two sorts. A sort of cost is tangible, which can be controlled such as time, human resource, expense, etc. On the other hand, BSC application is management change, which is involved in change cost. The intangible management change cost includes process improvement, culture change, enterprise information construction, learning and training.The growing domestic enterprises should analyze own attribute and characteristic then make decision whether BSC need to be implemented or not, and should adjust implementation range and depth according to own adaptability of change.