Performance Management Of T Company: Using BSC Framework

As the changing of the environment companies facing, the shortcomings of traditional performance measurement method mainly based on financial indexes are emerging obviously. Moreover, the traditional performance measurement method can hardly meet the needs of modern company. In 1990's, the theory of Balance Scorecard (BSC) was born. It is not only an instrument for performance measurement, but also for translating strategy into action. This paper starts from the shortcomings of the traditional performance measurement method based mainly on financial indexes and explains the framework of the BSC Theory systematically. Based on the review of relative researches carried on in and out of China, with the case study of T company, this paper tempts to construct a performance measurement system for growing telecom vendor.This article introduces in detail the environment that T company is facing, analyzes the key factor for success based on description of the company's mission and vision. According to the process of constructing the BSC system and T company strategy map, this paper designs the BSC management system.Introducing the Analytic Hierarchy Process (AHP) has made the BSC framework tend to be quantified, because the AHP can eliminate the impact from managers' subjective. A BSC framework mixed with AHP combined with the indexes targets is practical for company performance measurement. This article proposes countermeasures according to the outcome of performance measurement and improves T company performance.The paper constructs index system under the BSC framework for a growing telecom vendor, to an extent enlarging the BSC application scope. The experience of T company constructing and applying BSC can be of some reference for similar companies.