Study On The Application Of Balanced Score Card Business In China

Since Robert S. Kaplan and David P. Norton developed the concept of BalancedScorecard (BSC) in 1992, the card has been widely applied in business companies aroundthe world. The Balanced Scorecard is considered as one of the 100 mostly famousmanagement tools in the 20th centaury. BSC first appeared as a kind of tool forperformance assessment, however, with intensive application, it has evolved into a tool forstrategy implementation.Since western enterprises improve their business by implementing Balanced Scorecard,China's enterprises take a try on it. However, their results are not as sound as foreigncompanies'. The author tries to find the reason for this discrepancy and presents somesuggestions. In this thesis, the author reviews the theories of BSC, analyzes its generalcontext, its unique qualities, and its function as a strategy management tool, seeks for thecauses of problems existed in China's enterprises implementing BSC, and take intensivethinking from enterprises' internal and external environment. In the author opinions, thereare two causes for their failure. One is that China's enterprises have not a deep understandto BSC and do not treat it as a strategy management tool, for example, executives do notintensively put themselves into implementing BSC, and do not link BSC with strategy andincentive compensation program. The other is that enterprises do not review their internaland external preparation for BSC before implementing it. The internal preparation refer tointangible assets status, and the external one refer to macro economic environment, such aseconomic institutions, government's styles to manage economy, business trust status andsocial culture. Considering those above, the author appeals China's enterprises tounderstand essence of BSC and act according to actual circumstances. It is not wise forthem to copy external enterprises experiences without deep thinking.The thesis is a combination of theory development and case analysis. In addition tooverview of major theories, it also includes cases from different sectors. The author tries touncover the deeper reasons behind the phenomena and gives some suggestions for China'senterprises to successfully implementing the Balanced Scorecard.