Research On The Application Of Balanced Scorecard In The Performance Management Of The Agricultural Bank Of China L City Branch

In recent years,repeated private fund-raising events,the rapid development of Internet finance,and the influx of foreign banks and small/medium-sized financial institutions,make the financial environment become particularly competitive and complex.Faced with the severe current situation,China’s commercial Banks have an urgent need to clarify the strategic orientation,adjust the development mode,and formulate a goal oriented dynamic performance management system that can adapt to changes in the external environment.The commercial bank performance management system based on the Balanced Scorecard,can made up for the inadequacy of traditional performance evaluation that focuses on financial indicators,by adding the emphasis of the close relationship between the performance management strategy with the bank.It also put forward an index framework that can balance the long-term goal and the short-term goal,the internal goal and the external goal,the financial goal and the non-financial goal.L city broke out a large-scale folk financing capital chain rupture in 2015,which leaded to a large amount of capital outflow,increased non-performing loans.In this event,the China agricultural bank L city branch,as a local well-known large Banks,also suffered a certain loss as well.Based on the theoretical guidance of the balanced scorecard,ABC L city branch of China adjusted some performance evaluation index and its proportions to meet the financial environment changes,in order to increase staff motivation and to achieve the strategic objective of"controlling the risk,building a customer network,and developing staff libraries".A case study on performance management in the L branch of the Agricultural Bank of China,using the Balanced Scorecard,is conducted in this paper.Firstly,we collect pre-requisite information through interview and questionnaire method,and elaborate the present status of ABC L city branch in China,the negative impact on of this folk financing event,and the adjustment of the performance management system for adapting to change of the external environment.Secondly,by using literature research,case analysis,questionnaire survey and interviews,we analyze and diagnose the remaining existing problems after this adjustment;these problems include the economic incentive imbalance performance indicators for different positions,customer maintenance indicators that cannot reflect the business quality,internal business process index evaluation that are not enough detail,the training knowledge that cannot meet staff expectations,and the poorCommunication between the supervisor and the stuff in the performance management system.Finally,by combined diagnostic results with its strategic orientation,we put forward corresponding suggestions from five aspects:setting differentiation economic benefit index,setting weights according to the business layer,refining the internal business process appraisal,setting up training courses that can meet staffs’ needs,and introducing the Balanced Scorecard software.These suggestions can help the branch of China agricultural bank L city respond to the folk financing erupted,so as to obtain a positive role motivate and appraise the staff.This also can provide a reference for other commercial Banks to use the balanced scorecard for dynamic performance management.