Design Of Performance Index System For City Commercial Banks Based On The Balanced Scorecard

At present, China's City Commercial Banks are developing gratifyingly, but there are many small-and-medium sized City Commercial Banks struggling and having to walk the path of mergers and acquisitions in order to survive. For some large City Commercial Banks, it becomes their first choice to open new cross-regional agencies for seeking a broader development. So how to collaborate the strategic business units (branches) whose quantity is gradually increasing, to serve for the head office has become an urgent problem to resolve. In addition, a number of natural defects and problems in management and development require the City Commercial Banks to change management idea and management mode to adapt to the ever-changing competitive environment. As a new type of strategic performance management tool, the BSC discards the previous one-sidedness which only values the financial indexes, but values the indexes from financial, customer, internal process and learning and growth level to comprehensively measure the effect of enterprise operations. So the BSC can help City Commercial Banks to resolve these thorny problems.This paper uses the research methods of literature study, case study, questionnaire survey study and factor analysis, and takes the City Commercial Banks as the research object. Then it analyzes the applicability and necessity of using the BSC to take performance management for City Commercial Banks in detail, and highlights the section of designing the performance evaluation index system in performance management. Then taking JS Bank as an example, this paper designs a strategy map and a performance evaluation index system based on the BSC. At last it evaluates the 2009 financial index results of JS Bank's head office. Through research, the paper argues that the City Commercial Banks can use the BSC to take performance management. And the BSC can resolve the problem of collaborating the business units (branches) after M & A for small-and-medium sized City Commercial Banks and cross-regional development for large City Commercial Banks. The BSC can resolve the natural defects of City Commercial Banks and help them to change the management idea as well as the operation mode, but the City Commercial Banks must meet the necessary prerequisites to use the BSC in performance management. In addition, after an evaluation of the results of the financial indicators of JS Bank in 2009, this paper argues that JS Bank's financial performance is in the qualifying level, but the results are in polarized distribution, which shows that JS Bank has severe problem.