Performance Measurement For Telecom Carrier Based On The Balance Scorecard And The IT Scorecard

We are now in a great new era of economic globalization,trade liberalization,and knowledge economy. Performance measurement is a support system of decision-making and implementing strategy,it has a significant function in the operation of enterprise,and has aroused general concern. As the bellwether in information revolution and the pillar in national information industry,Telecom carriers must deal with the crucial issue that establish highly scientific performance measurement system in order to respond to market demand in a timely manner,and improve effective of strategy execution meanwhile found the core competitiveness. This paper has summarized typical theories and models in the development process of performance measurement, such as Woll scoring way,Dupont financial analysis system and EVA (Economic Value Added) system, and pointed out the limitation of The conventional performance measurement system that it attaches great importance to static financial indicators but little to nonfinancial ones,it pays too much attention to results, which is apt to result in focus on short-term benefits. As a system of measuring performance which contains financial and nonfinancial measures,the Balance Scorecard (BSC) makes up the shortcomings of traditional financial measurements systems. It comprehensively measures the long -term strategic objectives of enterprises. It consists of four integrated and linked perspectives: financial,customer,internal business processes,and learning & growth. This system transforms visions and strategies into measurable indexes with four dimensions,in order to synchronize the performance measurement and strategy map. Analyzed the characteristics of Telecom carries's performance mode in the perspectives of BSC,the paper finds out that it is important for them to evaluate the information performance,it is necessary to pay great attention to set feasible dimensions,since it is significantly influences the performance of whole enterprise. The common BSC indicators are not able to evaluate performance of the information correctly. So the IT Scorecard is thus added for solving these problems. The research is based on the concept of Balance Scorecard and IT Scorecard which based on COBIT(Control Objectives for Information and related Technology),a model of IT performance. By introducing the concept,the interosculation,and in the using of the BSC and IT Scorecard, this paper applied introduction of the IT Scorecard method on the basis of the BSC to the specific company A as a case study,this paper studies the problems arising from practice, and suggests the mode to forth a better and more practical performance appraisal system,to make some inspirations for the establishment of a feasible performance measurement system for Telecom carriers and other information-based & knowledge-intensive enterprises.