Comprehensive Budget Management With Strategy And Performance Management

With the initial function of planning and production harmonization,Comprehensive Budget Management has been developed to be acomprehensive operating mechanism of business policy and strategy, and isconsidered to be the core position of the enterprise’s internal control system.At the same time, new management theories and tools, like the StrategyManagement, the Balanced Scorecard, and the Key Performance Indicatorand so on, have been introduced into the internal management of theenterprise. But in the implementation of these management theories and tools,a lot of enterprises use these tools separately rather than an integrated system.One normal example is the disconnection or un-matching among theenterprise’s strategic objective, the budget target and the employee’sindividual performance objective. These disconnection or un-matching wouldlead to the inefficiency and ineffectiveness of the resources allocation withinthe enterprise and the un-delivery of the enterprise’s strategic objective. Sothe research and formation of an organic and complementary managementsystem which integrate a variety of advanced management tools would be anessential way for an enterprise to enhance their competitiveness and value.This paper starts from the analysis of the theories of ComprehensiveBudget Management, Strategic Management, Balanced Scorecard andPerformance Management to study the internal logical connections betweenthese advanced management tools, and discuss the feasibility of the integration of a variety of advanced management tools. At the same time,combine with the issues found in Comprehensive Budget Management,Strategic Management and Performance Management implementation of thecase company, this paper propose to establish the theoretical framework ofthe Comprehensive Budget Management System which based on CorporateStrategy and linked the performance management system through theBalanced Scorecard, and illustrate how to introduce the outcome of theBalanced Scorecard into the Comprehensive Budget Management System tomake the strategy formulation, strategy implementation, budget andperformance management become an organic whole.