Study, Based On The Balanced Scorecard Performance Management System

The balanced scorecard (BSC) is recommended by Harvard Business Review as one of the most influential ideas of the past 75 years. So far, BSC both has been used widely in Western developed countries and has been drawing more and more attention in Asia area . However, there are some worthy of promotion such as controlling process and exestuation .PDCA cycle is famous for quality management, and has been brought about performance for a long time. However, its controlling is very effective ,its goal is not appreciation .This thesis is focused on BSC's theoretical senses in strategic management system. Upon the basis of the current implementation of PDCA, it further discusses the way of applying BSC approach in China through a detailed analysis of a state-owned enterprise in practice. This thesis consists of five sections.The 1't section begins with an introduction to the developing history of BSC, followed by the analysis on BSC framework. BSC has evolved from a performance measurement system into a strategic management system. BSC turns the company's strategy and prospect into detailed objectives, measures, targets and initiatives in four different perspectives, i.e. financial, customer, internal business processes, and learning and growth, providing strategic interpretation, communication, resource allocation and feedback.The 2"d section summarizes the current situation of BSC application of performance management The general use of BSC in China and its breakthrough results brought to different countries and industries are also described.The 3`d section is PDCA application of performance management.The 4'th section is aimed to integrate PDCA into BSC and brought into performance management.The5'th section a case study on the practice of BSC in a state-owned enterprise. It is aimed to lead readers to think about one real BSC application case. After describing the background, this section renders the whole process of using BSC to clarify the company's vision and strategy and to launch them into action. Some existing problems in application are also mentioned and some suggestions are provided. It reminds managers, who want to apply BSC approach, of some critical concerns. The balance of BSC has the characteristics of comprehensive, critical and consequent, which is kind of dynamic. Unifying the three levels of company, department and employee, BSC can also include the other two influencing levels into the strategic management system The implementation of BSC needs the efforts of all employees and surely requires long-term devotion.The 5'h section presents the necessity and timing of China's application of BSC and above all raises my point of view on the possible existing obstacles and correspondent solutions.