Research On Balanced Scorecard In Credit Guarantee Company

As economic globalization and Chinese market economy development evolving, Chinese enterprises are facing fiercer competition environment. Effective performance management system is very important to strategy execution and performance promotion. As a newly born industry, Chinese guarantee companies are operating without performance management system that fits their business characteristics well, which will certainly affect the firms'persistence and competence in a long run. This research focuses on a certain Shenzhen guarantee company. As a management consultant employed by the company, the author introduces a Balanced Scorecard (BSC) system and performance management system into the company. Through the practical experience of implementing those systems, the author studies the correlation between the business strategy, the performance management system and payroll system. Meanwhile, using the BSC of Kaplan and Norton, the author sets up a strategy-based performance management system to help the management team realize the firm's development target. First, Based on her practical experience obtained for the company, by analyzing the industry and its main competitors, this dissertation understands how to set up the performance management indicators system of Guarantee Company. Secondly, this dissertation Studies on how to correlate the company strategy with the performance evaluation system and the payroll system. Finally, we make research on how to introduce BSC into Guarantee Company and the difficulties and solutions when setting up strategy-based performance evaluation system. The author concludes her study as follows: (1)The BSC will effectively help Guarantee Company to transfer strategy into a more practical performance indicators system, which is easily understood and accepted by the employees. (2)The BSC will improve short-term financial performance as well as benefit the long-term development of the company. (3)Performance management system will be effective when related with the payroll system. ( 4 ) Communication is quite important when implementing the performance management system. Through the above studies, the author hopes to bring up some beneficial references and thoughts for the healthy and persistent developments of the guarantee industry in a long run.