Feasibility Of The Balanced Scorecard In Our Application

In today's information era, the internal and external surroundings of the company have undergone great changes. If a company wants to survive and prosper, it must use the performance evaluation system derived from its strategies and capabilities. Therefore, the traditional performance evaluation system is not applicable any more because it's mainly financial evaluation, targets the internal aspect of the company and emphasizes on the strategic feedback. As a result, to reform the traditional system has become a necessity.In 1990s, based on the long-time and continuous evolvements, great changes have taken place in the traditional evaluation system in the Western companies. They started not to use financial indices alone. Besides, the performance evaluation and the strategic theories of the company are integrated and "Balanced Scorecard (BSC) " came into being. BSC was invented in 1992 by Prof. Robert S Kaplan of Harvard Business School and Mr. David Norton, CEO of Renaissance Solutions. BSC targets on the vision and the strategies of the company and it measures the future driving factors of the company. The targets and the measuring methods evaluate the company's performance from four perspectives: financial, customer, internal business process and learning & growth.In China, the evaluation methods of the company's performance are comparatively traditional and usually companies use financial indices as the major methods, neglecting the integration of business strategies and the driving factors for profit into the performance evaluation. Therefore, the companies are not capable of facing the increasingly fierce competition. BSC is an information-based strategic management system which integrates the strategic goals and the performance driving factors.In theory, BSC is especially significant in terms of improving the performance evaluation system of Chinese companies and the introduction of BSC has become a tendency. However, although BSC has incomparable advantages over other performance evaluation systems and has been very successful in other countries,whether BSC can be successfully implemented in China remains an issue of attention because China and the western world are very much different. The differences are: first, Western countries have years of strict, standardized and scientific business management practice; second, management theories continue to innovate and develop. It is also because of this that the thesis is aimed at studying the feasibility of BSC in the current situation in China.There are five parts in this thesis: first, analyzing the current evaluation status of business performance of Chinese companies and pointing out the major existing problems; second, a brief introduction of BSC, including the fundamentals, the balancing role and the consequence of BSC; thirdly, the application of BSC in China and abroad and the problems easily emerged; fourthly, the analysis of feasibility of BSC in China, which is also the core part of the thesis, in this part, the conclusion is drawn based on the difficulties and obstacles Chinese companies might encounter and the necessary qualifications the companies should have in order to apply BSC in Chinese companies; fifthly, proposals for how to apply BSC in Chinese companies.