Application Study Of Balanced Scorecard In The Performance Management Of AB Manufacturing Company

With the development of economy and the progress of science and technology, more and moreenterprises are beginning to study and focus on performance evaluation system. Enterprise hopes toadopt scientific, comprehensive, high-efficient performance evaluation system to manage and monitoreffectiveness of organization, initiative of employees, other behaviors and so on. Performanceevaluation system is regarded as value measurement system based on actual performance result.Currently there are some performance evaluation systems used widely among the enterprises, forexample: Average Equity Multiplier, Comprehensive Evaluation Method, Balanced Scorecard and EVAComprehensive Scorecard etc.. The balanced scorecard has already been used in the majority ofenterprises and it has also become the strategic and performance management tool in the internalmanagement of enterprises.Firstly, this article takes AB company as the research example, introduces the present situation ofperformance management in AB company, analyzes the existing problems and discusses theimplementation conditions of Balanced Scorecard. Secondly, it introduces in detail how AB companydraw a strategic map and design key success factors and key performance indicators of four levels:company-level financial level, customer level, the internal operation management level andlearning-and-growth levels, based on the Balanced Scorecard Principle, company strategic goals andvision. Thirdly, detail introduce the process of AB company implementing the Balanced ScorecardSystem and also write about how to break company’s strategic goals down to Department level andindividual level. Next, it analyzes the implementation effect of the Balanced Scorecard analyses in ABcompany and introduces in detail the obstacles and difficulties encountering in the implementationprocess of AB company.In the end, the article summarizes the implemented result of Balance scorecard in AB company andshares some experiences&suggestions with manufacturing companies planning&forthcomingimplementation of Balanced Scorecard System.