Research On Strategic Performance Evaluation Of Pharmaceutical Companies Based On Balanced Scorecard

As entering the21century, the economy is blooming with lots of foreign enterprises sharing the national market and thus enterprises are facing fierce competition. To promote the core competitiveness and pursuing big share, strategy and performance management must interact with each other to improve the development of the organization as well as setting clear career plan for employees, which will be a beneficial economic cycle for the enterprise’s growth. Pharmaceutical industry is one of the pillar industries, it is closely related with people’s livelihood, and is honored as sunrise industry which will never get outdated. Ever since the reform and open, the growth in the living standard is processing and the demand of health care is increasing, which drive the pharmaceutical industry’s rapidly development.However, compare with the big pharmaceutical company, there is still relative backwardness in performance management. Most of the performance management of pharmaceutical in China is still using the financial indicators or the traditional notions of merit rating. In order to conquer the difficulty, this paper applies balanced scorecard (BSC) combining with document research and questionnaire investigation to explore the construction of strategic performance management system in pharmaceutical.Firstly, this paper introduce the BSC, which is called "the most important management tool in recent years". The main idea of BSC is, by balancing the four aspects financial, customer, internal business process, learning and growth, to set the scientific indicator, in order to maximize the value of stakeholder and realize the common improvement of organization and staff. Secondly, in the view of the status and characteristics of pharmaceutical industry, this paper put forward the design idea of BSC of pharmaceutical company. By the help of tool, which include strategy map, the analysis of the chain of causality and so on, explore the application of BSC in pharmaceutical companies. And then the paper show the way of how to build the strategic performance management indicator system of pharmaceutical companies based on BSC. Finally, this paper takes the JingWanHong pharmaceutical co.Ltd as an example, discover the method of how introduce the BSC to the pharmaceutical companies. In the process of building the indicator system, we transform the strategy into a series of measurable indicators. And then use the analytic hierachy process to set the weight of each indicator, in order to make clear that which target is more important. Last, we give the advices and solutions for JingWanHong co. about how to introduce the BSC.