Strategy-oriented GS Company Based On Total Budget Management Optimization Study

In the background of high-quality economic development,enterprises should further improve the management control level to satisfy the requirements of enterprise management level for the goal of high-quality economic development by deepening reforms and optimizing management mode.With the advantages of covering the whole staff,process,and resources,comprehensive budget management(CBM)adapts to the enterprise management demands,which has been applied by increasing corporates in practice and achieved success.However,it also faces difficulties in adapting to changes in the external environment and detaching from corporate strategies.GS belongs to the electric power industry.Although the corresponding market-oriented reforms are continuing,the "double carbon" goal still poses a huge challenge to the development of enterprises.The adaptation to new requirements of enterprise development depends on their ability to innovate traditional management tools to meet value creation.Therefore,it is urgent that CBM effectively integrate the enterprise strategy and reflect it in the comprehensive budget metrics and performance assessment,helping corporates improve management,promote the strategy deployment,and break through the bottleneck of development with strong value creation.Based on a review of research on CBM and strategy-oriented CBM at home and abroad,this paper analyzes the current CBM situation in GS and finds that there is a major detachment between the setting,preparation and evaluation of comprehensive budget goal and enterprise strategy.To address the above problem,this paper starts with a strategic perspective and optimizes GS’s CBM system,aiming to introduce GS’s strategy into this system.Specifically,the SWOT method is first leveraged to determine the development strategy of GS and the balanced scorecard tools is decomposed the strategic goals from four dimensions,respectively.Then,the critical success factors for each strategic dimension are described by refinement of strategy maps.The GS’s strategy is integrated with CBM through strategy-oriented budget metrics.Next,strategic budgeting is conducted on the basis of the company’s operations,capital,and financial budgeting,and the key budget analysis and control contents is decomposed.Finally,the Delphi method and hierarchical analysis are used to assign weights to strategic budget assessment metrics;the pay-for-performance reward method is defined to link the contribution of strategy completion.In addition,four safeguards are proposed to guarantee the successful implementation of strategy-oriented CBM in terms of playing a leadership role,interdepartmental collaboration awareness,information system support,and risk control.The main contributions of this paper can be summarized as follows:(1)This paper summarizes the main measures and problems faced in CBM from GS in the electric power industry.A new perspective is provided to enrich the case study of CBM in the electric power industry;(2)By studying the problems of GS’s CBM and proposing further optimization plans based on GS’s strategy,it gives a certain reference in helping enterprises improve their own internal management;(3)GS has rich experience in operating in the clean energy power industry.In addition,it has continued its practice of CBM,and the issues it faces are representative and common in the whole industry.Therefore,the proposals and conclusions in this paper can inspire other enterprises in the same industry to make decisions.