Inter-organizational Cost Management Based On Balanced Scorecard

With the prosperity and development of the commercial economy,the communication between countries and countries,enterprises and enterprises is becoming more and more frequent,enterprises are no longer separate individuals,but more tend to work together,enterprises want to generate value-added from within itself becoming more and more difficult,therefore,from the outside,to the upstream and downstream of the supply chain to seek closer cooperation so as to use interorganizational cost management for cost planning and control is a new idea in the current fierce competition environment,but also an effective way for enterprises to implement strategic cost management.Enterprises will look outside the enterprise,find new cost control points from the cooperation of suppliers,distributors,outsourcers and other upstream and downstream enterprises in the supply chain,and the cost management between the enterprise and the upstream and downstream partners of the supply chain is the cost management between organizations.With the further development of the market economy and the increasingly fierce competition,enterprise management can no longer ignore the strategic management of enterprises.Therefore,in the strategic operation management of enterprises,the ideal tool for strategic execution management of enterprise operation is introduced-The Balanced Scorecard(BSC;Some scholars also translate it as the Balanced Scorecard),which should be used for Inter-Organizational Cost Management(IOCM;Domestic multi-called cross-organizational cost management)is more effective.Interorganization cost management starts from the cost between upstream and downstream enterprises in the supply chain,and focuses on reducing the cost between organizations to achieve common value-added for each enterprise.Inter-organizational cost management is from the perspective of strategic collaboration,strengthening synergies between enterprises to achieve higher corporate value.However,now,whether in theoretical or practical circles,there are still not many studies on the introduction of balanced scorecards in the study of inter-organizational cost management control that crosses(enterprise)organizational barriers,and even fewer case studies applied to corporate practice.This paper is based on the perspective of The Balanced Score Card(BSC),and embeds the effective tool of strategic execution management-the Balanced Scorecard into Inter-Organizational Cost Management,based on the Balanced Scorecard interorganization cost management can not only break the shackles within the traditional organization,but also enhance the closeness of collaboration between enterprises and organizations.Effectively control costs,reduce internal friction,and effectively exert synergistic effects,so that all enterprises involved in collaboration can create higher value,and ultimately achieve a win-win situation for all organizations.Therefore,the research focus of this paper is not on the transaction costs between organizations,but on organizational synergy between organizations.Cost management and organizational synergies are better by effectively managing organizational synergies between organizations.This paper first collates the research results of inter-organizational cost management through literature research,and embeds the Balanced Scorecard of strategy execution management system into inter-organizational cost management from the perspective of strategic management.In addition,based on the principle of combining practice and theory,this paper takes Company A that successfully practices the inter-organizational cost management model embedded in the balanced scorecard as a case study,and verifies the proposition proposed in this paper through a case study.