Research On ABB Management Model Based On The Performance Prism

Activity-Based Budgeting management is a new type of budgeting management based on ABC. But the theory research on Activity -Based Budgeting management is few. Though these years more and more people enter into this research field in China, most of them combined Activity -Based Budgeting management with Balanced Scorecard. Nowadays people realized that company must take all interest groups into account for sustainable development. So the Performance Prism based on stakeholder interests becomes the compatible one to be combined with Activity -Based Budgeting.This paper used the research fruit of domestic and overseas experts for reference, tried to study the theory of the combination of the Performance Prism and Activity -Based Budgeting management.At first, this paper analyzed the significance of the subject, introduced the study status of Activity -Based Budgeting in domestic and overseas and pointed out the deficiency of those researches.After introducing ABC, stakeholder theory and the Perfonnance Prism as theoretical foundations, this paper established a new ABB management model based on the Performance Prism. By replacing process by Activity -Based Budgeting management in the Performance Prism, Activity -Based Budgeting management was combined with the Performance Prism closely.Then this paper studied the ABB management model based on the Performance Prism systemically. The initial and important step was to make certain who is stakeholders of company. The second step was to investigate what those stakeholders want and what they offer. The third step was to establish corporation's strategy on the requirements of stakeholders. The forth step was to confirm corporation's ability on the contributions of stakeholders. The fifth step and the most important step was compiling steps. The design thoughtfulness of ABB's compilation were put forward and detailedly analyzed in this paper. On the last step, the result of ABB management was used as corporation's performance appraisal.