The Research On Bank H To Improve Strategic Performance Management System Based On Balanced Scorecard

The economic crisis has engulfed the entire world since the 2^nd half of 2008.Banking industry was worst affected with customer scale shrinking,customer quantity decrease and net profit decline.A lot of bank management has cast about for the way to survive from this crisis.Although guided and supervised by China Banking Regulatory Commission and People's Bank of China,the profit of the banks in mainland China are also affected by the RMB appreciation and size reduction on export market.Balanced Scorecard is a set of tool on strategic management and performance appraisal which has been widely used in the world.In the severe domestic and international environment,introduction of the Balanced Scorecard Performance Management System to the banks will enhance the bank's strategic management and performance appraisal standards.As well,it will ensure the bank's profit growth.Bank H is one of the foreign banks who has completed local incorporation.There are many problems on its existing performance management approach.For example, strategic objectives and performance management objectives can not be combined well,unbalance on setting of qualitative indicators and quantitative ones,target setting can not vary from person to person,lack of communication on performance management and score mechanism simplification,etc.Therefore,a strategic performance management system based on Balanced Scorecard is set-up in this paper. The system set-up here will ensure the implementation of strategy plan and the achievement of strategic targets.In this paper,the banking industry and the organizational structure of Bank H are briefly introduced and the existing performance management approach and its problem are detailed described.According to the management concept of Balanced Scorecard and method of setting KPIs,the Performance Management System for Bank H is level by level set-up based on its vision and strategy objectives.Then,the author illustrates the implementation of Balanced Scorecard Performance Management System for Bank H and indicates the issues to be paid attention.As well, the author compares the new and existing performance management system and points out the improvement.Finally,the author gives a prospect and reflection on implementation of new performance management system and provides some suggestions on the direction of further study on Balanced Scorecard Performance Management System.