Balanced Scorecard Application In Performance Management Of Corporation A

Balanced Scorecard is a strategy and performance management tool brought out by Professor Kaplan from Harvard Business School and President Norton from Nolan-Norton in 1990s. It carries out strategy of the organization with operable measures and targets in four correlated dimensions, financial, customers, internal processes as well as learning and innovation (3 or 5 dimensions are also viable according to the actual requirement), so as to realize equilibrium orientation and performance measurement of all levels. Performance management system of Realizing Strategy Guidance can be built by BSC to ensure effective implementation of the enterprise strategy. Balanced Scorecard solves kinds of limitation caused by one-dimensional measurement of financial target. It has been recognized and accepted globally after twenty years'development, and even adopted by non-profitable organizations and government agencies in the United States.In recent years, Balanced Scorecard is also widely applied in China as a performance management tool. Corporation A the author serves is a state-owned enterprise of twenty years history. For years no management but only measurement of performance is adopted in the corporation, and the performance measurement depends on one-dimensional financial target. Moreover, there is no direct correlation between merit pay, personnel appointment and the measurement result. It is realized by the corporate management that a reform aiming at performance management issue is necessary. Balanced Scorecard is chosen as basis of the new performance management system after reference and comparison of regular tools. The article probes into ways of building performance management system based on BSC in small- and medium-sized enterprises by methods of documentary study, survey and interview, data analysis. Improvements in management, internal operational environment and staff motivation are expected, furthermore, stakeholder wealth maximizations of shareholders, staffs and clients are achieved.The article analyzes and compares the regular enterprise performance management methods by means of background tracking and status survey of corporation A, to explore means and approaches of building performance management system by applying BSC to small-and medium-sized enterprises with their own features.