| Enterprise , the entity to achieve economic objectives. The enterprise can not go without the evaluation of the performance, to ensure the realization of the given objectives and the contribution all departments, teams and individuals have made within the organization ,to judge the effectiveness of all operational activities in searching for obtaining organization's goals. Performance assessment has always been one of the important managerial activities.This paper introduces the method of the performance assessment——Balanced Scorecard (BSC), which originated in 1990's ,and since had been developing quickly through these years. The key of BSC is that the performance being interactively drived by four factors including learning and growth, internal process, customer and financial perspectives. The BSC demonstrates the trace of the strategic development of an organization : the performance evaluation——performance improvement and strategy execution——renewed strategic objectives. The indicators to measure performance includes not only financial perspective, but non—financial ones including customer , internal process , learning and growth etc. All the indicators are regarded as the drivers of future financial results. All the financial and non—financial indicators come from the company's strategy which are the components of it. In this way, between the strategy and the aims, there forms a bi-directional cycle of improvement. BSC provides not only a frame of innovative performance evaluation system, but a thoughtway and method to establish the systematic relations between strategic management and performance assessment. The performance evaluation system can be a part of enterprise's strategic management . The management philosophy of BSC is relatively popular as it has been formed for more than 10 years and worked for 3 or 4 years in China , people began to recognize the basic knowledge of it from theory to practice. But we can not deny that most enterprises failed to apply BSC, though only few of them can make best of it.This paper considers the current situation of china's application practices on the basis of study on BSC abroad, looks for the root causes why most companies in China failed to take advantage of it. Understanding those causes would be very critical to implement BSC and will directly determine the quality of its application. The paper will discuss how to deal with problems mentioned before on the ground of those causes and how to exert the real power of BSC.I. Main contents and viewpointThe first chapter is about the basic principle and application basis of BSC. Firstly, it searches for the sources of performance evaluation theory and its development with the transit from industrial age to information age . There are a variety of changes happened in enterprises, which includes the operation , management and business models etc. secondly, the paper discusses the reasons to introduce BSC . The third part points out the prerequisites to apply BSC into practice.The second chapter analyzes the present practices of BSC's application at home and abroad. It studies the difficulties and obstacles in when implement BSC in China. It summarizes eight major aspects of difficulties.The third chapter discusses the approaches to exert the real power of BSC. Based on the embarrassed condition of Chinese practices on BSC , there are four aspects to be considered. These four parts are as follows: understanding BSC correctly , having a clear picture of the company's strategy, analyzing whether the corporate culture being suitable for application, and improving the inner management basis.The last chapter discusses how to construct the route to exert the real power of BSC on the basis of the case study.II. Main contributionsFirstly, this paper summarizes the main difficulties and obstacles in the application practices on BSC in China. It points out the prerequisites to apply BSC into practice.Secondly, the paper discusses the effective approaches to push the application of BSC in China. |
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