Balanced Scorecard Applications In Changchun Telecom Performance Management

The Balanced Scorecard gradually becomes a strategic implementing and inspecting tool of management, which concerns with the enterprises'performance from the financial goals, customer, internal processes, learning and growth perspectives and which can help the enterprises achieve the future goals in using the strategy and performance management during its fifteen years development. The Balanced Scorecard is used for achieving balances, which include the balance between the financial and non-financial indexes, the balance between long term and short-term objects, the balance between inside and outside indexes of the enterprises. The implementation of the performance management that is based on the Balanced Scorecard means try to use this kind of card in the performance management. It can effect the performance management mainly in four relative and repeating aspects that are performance plan, performance direction and communication, performance examination and performance returns. Changchun Telecom acquired outstanding operation achievements in the last year as a new telegraphy operator. However, because the company is a young one, there are still many shortages in implementing the performance management, such as the strategic management cannot be well connected with the performance management; there isn't a special department for checking the performance management; there aren't measurable indexes for checking etc. In this case, we decide to implement the performance management based on the Balanced Scorecard in order to be able to translate strategies into actions in the furious market competition. First of all, we need a performance management plan that is based on the Balanced Scorecard, and we need to establish the performance management system mainly according to the following steps: 1. Formulate a strategic map of the company. We have formed a strategic map of our company for 2005 in managing the principle of the Balanced Scorecard to analyze the company from the financial goals, customer perspective, internal processes, learning and growth perspectives according to the 2005 operating objects of the Changchun Telecom. 2. Analyze the objects in order to establish the key performance management indexes system. We have formed a department operating object by analyzing the company's strategic map and the operating objects, and combining the functions of different departments. After quantifying the objects we will find out the key driving elements of the performance according to the department operating object and then translate this into a performance indexes system. It is a parameter that can reflect the change of the key performance driving elements effectively; it is also the reflection of the key operation actions. We should first finish the checking for the indexes before the formation of the key performance indexes system. This mainly includes checking whether the indexes are consistent with the departmental strategies, whether they are controllable, whether they are enforceable, whether they are reliable, whether they are measurable, whether they can be acquired under lower costs, whether they can coordinate other relative elements and whether they are understandable etc.3. Formulate a performance plan based on the Balanced Scorecard. The Balanced Scorecard of the department is a very important part of the department performance plan that needs to be designed at the very beginning. This mainly includes the relative contents of the examination between the objects and the indexes, the indexes value, the action plans. The Balanced Scorecard then can be brought into the department performance plan. This plan mainly includes summarization, the company's obligations, future, strategic objects, the performance objects that are in checking, the Balanced Scorecard of the department and accessories etc. There are four stages for establishing the Balanced Scorecard for the employees'posts and the performance plan: setting individual checking indexes, distributing authorities and ensuring the indexes values, working out individual work plan, establishing the Balanced Scorecard for the posts, and gathering the performance plan for the formal employees'posts. Then bring the finished the Balanced Scorecard for the employees'posts into the performance plan for the employees'plan. This plan includes summarization, obligations, future, strategic objects, the indexes'information for the department the Balanced Scorecard, the performance objects which are in checking, the Balanced Scorecard for the posts of the employees and accessories etc. Secondly, bring the performance management scheme into the daily work and we should finish the following jobs well: 1. Formulate the performance management system based on the Balanced Scorecard. We need to establish relative system to ensure implementing the performance management effectively. This system mainly includes: thedefinitions of the Balanced Scorecard and performance management and the purposes, the basic principles, the settings and the work divisions of the organizations, the overall flow, the classification, the applicable range, the making flow, the direction of the performance management, the feedbacks, the performance checking and the application of the results etc. 2. Design the flows and sheets for the performance management based on the Balanced Scorecard. We also need some tools like flows and sheets to cooperate with the performance management system. The flows of the performance management based on the Balanced Scorecard mainly include the making flow of the Balanced Scorecard and the performance plan, the checking flow of the performance, the appealing flow of the performance examination. The sheets include the department performance plan sheet, the employees'posts performance plan sheet, the explanation sheet for the indexes and the appealing sheet for checking the performance etc. 3. Pushing the innovation of the performance management based on the Balanced Scorecard. We should establish a strategic implementing leading team first in order to formulate a new performance management system and push the innovation of the performance management based on the Balanced Scorecard. Changchun Telecom has set up a leading team headed by the general manager, which is in charge of directing, supervising and implementing the innovation of the performance management. We need to bring the strategies into the practices and make them be in the daily jobs of our company so as to achieve the innovation. We also need to perfect and integrate the organizations'structure during theinnovation process so as to make the company be adapted to the innovation; bring the strategic analysis in to every employee's work, make them understand the meaning of the innovation so as to get their identifications and supports. In fact, we can only achieve the perfect progeny of performance by keeping the performance management based on the Balanced Scorecard being a durative flow, and only in this way our company can keep pushing innovation and keep making progress. 4. Evading the false areas of the performance management based on the Balanced Scorecard. We cannot solve all the problems in using the performance management based on the Balanced Scorecard. In order to avoid the false areas of the performance management we must realize the following things clearly: the Balanced Scorecard is not only a measurement tool of the performance, it also can help to find out the problems which exist in our company and solve them; it is not only an individual performance checking tool but also a good assistant of improving the overall performance of the enterprises; we must use it effectively according to different circumstances of different departments; we also need to learn much more technological knowledge and use it in the practical affairs so as to promote the sustaining development of the company. Anymore, bring the Balanced Scorecard into the company's performance management can help to achieve the balance between the financial and non-financial indexes, the balance between the short and long term objects, the balance between the inside and outside indexes so as to acquire perfect progeny of the performance. It also can help to avoid the shortages of the deviation of the company's strategic objects and performance management and change the...