On the financial management seminar in the use of the Balanced Scorecard

Paper Keywords Balanced Scorecard Financial Management Performance Management
Abstract Balanced Scorecard as a strategic performance management a powerful tool, since its inception more widely applied to various industries, the paper on how corporate Financial Management issues related to effective use of the Balanced Scorecard briefly discussed.


The early 1990s, Robert Kaplan and David • • Norton in the evaluation of future research in organizational performance made a Balanced Scorecard (Balanced Score Card concept, then, the Balanced Scorecard as a standard management practice is widely introduced to the company's management, in simple terms, that is, through the establishment of a set of financial and non-financial indicators, the performance of the business and competition in an integrated and comprehensive, systematic evaluation.

First, the basic principles of the Balanced Scorecard
1 the basic framework of the Balanced Scorecard: Balanced Scorecard consists of four levels of content: financial, customer, internal business processes, learning and growth.

(A financial level: past efforts to measure results.

Financial level shows whether the company's strategy and its implementation contribute to the increase in profits, the typical financial goals related to profitability, growth and shareholder value is the core focus of this aspect of financial indicators, which summarize the actions taken by business units can be generated measure the economic outcomes plays an important role.

(2 internal process level: the major business processes, innovation, learning and growth within the measure.

Internal business processes, the level of the value chain business processes into innovative processes and business processes. Innovative process including product design and product development, business processes include the manufacturing, marketing and after-sales service. Simply is to determine customer needs, design and development , manufacturing marketing, services to meet customer needs.'s internal process level the focus is to attract and retain customers in target markets, and meet shareholder expectations of financial return, the company must be good at what core business processes, and consistent with our values orientation.

(3 customer level: measure the outside shareholders and customers.

Customer level, the focus of this aspect of the company's customers expect to get some parts and the market and this in answer the following question: in interpretation and implementation of customer and market strategy, and create the best financial returns in the future how well. Need to measure The core areas: market share, customer retention; customers rate, customer satisfaction, customer profitability.

(2) balanced scorecard concept: the concept of Balanced Scorecard emphasizes balance, what balance? Internal and external balance, the balance of results and motivation, the balance of quantity and quality, short-term goals and long-term goal of balance. But balance does not mean that all aspects of the scorecard in strategic control on an equal footing, and the different strategies according to different requirements, focus on key aspects of the implementation monitoring.

Second, the Balanced Scorecard in corporate Financial Management in the use of
1 Balanced Scorecard indicator system design.

(1 in the choice of evaluation indicators, to focus on maintaining consistency with the corporate strategic planning and feasibility, the proposed target is not only long-term strategic goals and business are closely related, but also consistent with the requirements of short-term plans.

(2 in the choice of assessment indicators, the need to follow the SMART principle that specific, measurable, achievable, relevant and time-bound principles.

(3 in the choice of evaluation indicators, but also pay attention to assessment of operability and easy to understand indicator of from the implementation of successful business practice, the design of the Balanced Scorecard indicators, generally around 25-30 target set appropriate, including: the financial dimension contains 3-4 indicators; customer dimension includes indicators 5-8, 5-10 targets, including internal processes, learning and growth dimensions include 3-6 indicators.

In short, the design of the Balanced Scorecard indicators, we must focus, focus on key assessment indicators, so as to ensure that the Balanced Scorecard's four dimensions of enterprise development strategies to fully reflect the intent and general requirements.

(2) of the Balanced Scorecard implementation.

The implementation of the Balanced Scorecard summarized as the following five steps: (1 prior to the implementation of the preparatory work. Balanced Scorecard strategy is to describe the tools that end, the team must have full access to the business organization's mission, vision, strategy, competitive position and core competencies of staff background information.

(2 Balanced Scorecard based on corporate strategy set four angles (financial, customer, learning and growth processes, and the Ministry's strategic performance goals, this step can be seen as the development of enterprise-level Balanced Scorecard Balanced Scorecard, followed by department scorecard and individual scorecards will be followed.

(3 communicated within the organization and the performance goals step by step strategy to implement the various departments and individuals within the organization. Departments and individuals in this step is the Balanced Scorecard developed by the Balanced Scorecard design departments and individuals can effectively Avoid horizontal and vertical imbalance is inconsistent. Links to free download http://www.hi138.com
(4 to capacity development and the Balanced Scorecard and variable pay linked to in this step model to determine the ability of employees to develop the competency of staff, while the progress of capacity development should also included in the employee's overall performance scores, with and form of remuneration directly linked to the ability to motivate employees to improve their own.

Using the Balanced Scorecard software system, regular reporting assessment results, analysis of strategy based on the assessment be adjusted accordingly, and repeat the process.

3 Balanced Scorecard should pay attention to the problem (1 cost of internal management needs, an overall increase of the Balanced Scorecard to use it more difficult for financial and non-financial information needs increases, increase the information-processing work volume, increasing the company's management costs, enterprises should pay attention to before using the Balanced Scorecard weigh the costs and benefits, only the net income is positive, can decide to use (2 should be combined with the actual situation, not mechanically copy mode, because industry background, strategic goals are different cultures, different metrics, Balanced Scorecard content is constantly changing as the business environment improvement and change. Thus, according to the actual situation of the establishment of a comprehensive Balanced Scorecard system, and according to changes constantly updated content, in order to effectively play its role. (3) the Balanced Scorecard in the company's Financial Management system is not isolated, should be included in the strategic management to the enterprise, if an enterprise does not have a clear strategic sense, relying solely on Balanced Scorecard to discover and develop a strategy is impractical, if used inappropriately may have the opposite effect. could be considered an organization such as the Balanced Scorecard are: lack of effective employee performance management system of enterprises, hoping to achieve a breakthrough of performance, need to change or reform state-owned enterprises, hoping to achieve long-term development, and other organizations to build the brand a century in short only those with a clear long-term strategic goals of the enterprise, it is more with the implementation of the Balanced Scorecard conditions.

References:
[1] Gao Yan Fang, etc. The Balanced Scorecard: improve the strategic management accounting tool. Inner Mongolia Institute of Finance .2004 (3).

[2] Li Xin. Balanced Scorecard in the non-profit organizations, the use of financial evaluation. Accountant .2009 (4) Links to free download http://www.hi138.com