Balanced Scorecard Application In China’s Commercial Banks In The Index System Of Performance Evaluation

All along, the commercial banks as the main financial markets play a pivotal role inChina’s financial industry.In recent years,foreign banks slowly among the country’s financialmarkets,city commercial banks and rural financial institutions are also showing a rapiddevelopment trend, especially in2013the state has adopted a series of reform policies ofcommercial banks in the face of such"external",China’s commercial banks are constantly toenhance its core competitiveness through reforms.However, the key to reform lies in how tobuild a scientific and reasonable performance evaluation system.Balanced Scorecard as a new strategic management tool,is problem theorists andpractitioners are very concerned, compared with the traditional performance managementmethods,there are many advantages.In a measure of bank performance, the BalancedScorecard into account not only the impact of the external environment, but also consider therole of non-financial indicators,which from a financial, customer,internal processes, learningand growth in four dimensions are analyzed to banks the strategic goal-oriented, and activelyseek balance the following areas:long-term strategy and short-term objectives, financialindicators and non-financial indicators,objective indicators and subjective factors.In this paper, H Branch of China Construction Bank for the study, carried out in theIntroduction of H Branch, based on the analysis of the H branch of the status quo andproblems of performance management, and puts forward the importance of the H branch ofthe introduction of advanced performance management and appraisal system. Secondly, in theanalysis of the external environment facing the development of H Branch, based on the resultsof the introduction of H Branch oriented Balanced Scorecard strategic performancemanagement tools that advanced the necessity and feasibility. Finally, the article from afinancial, customer, internal processes, learning and growth of the four dimensions ofperformance management indicator system designed H branch in the clear key performanceindicators, to determine the weight of each index again AHP, concluded H branch of theBalanced Scorecard. The results of performance appraisal and compensation managementcombine scoring by BSC as a basis for incentive rewards and punishments, conducive to achieving the bank’s strategic objectives.The main contribution of the article is to propose a Balanced Scorecard-based advancedperformance management model for the reform of commercial banks in the county proposes anew way of thinking and methods.Meanwhile,China Construction Bank H Branch examplecase studies,in-depth analysis in the process of applying the Balanced Scorecard keyperformance indicators for each dimension settings and indicators and determining theweights has important guiding significance.