The Study On Design Balance Score Card Strategy Performance Management System Of Octre Ltd.

With the property price soaring and investment increasing, our domestic real estate industry has entered into a new prosperous period since 2002. In order to control the overheating of the economy and level off real estate price, government has issued a series of macro-control policy to strengthen measures on land management, credit tightening, "70/90" limitation, etc. This brings influence to real estate developers. On the real estate market, the leading enterprises like Vanke, Poly, ZhaoShang and Gemdale speed up its financing and monopolization of land resource. In view of government control and trade competition, Shenzhen Overseas Chinese Town Real Estate Ltd. Company (OCTRE) is in face of unprecedented pressure. In order to exist and develop, it must firmly make and implement company strategy based on its core competence.In terms of strategy management, OCTRE makes a five-year roadmap based on its core competence of "comprehensive development and operation featured by tourism real estate." But some of them are not effectively formulated and executed. The guideline of the strategy becomes meaningless. On the other hand, in terms of performance management, performance plan doesn't match strategy target. The targets of departments and staffs are not consistent. Recognizing some of the weaknesses and vagueness of previous management approaches, this paper brings forward integration of strategy management and performance management to develop strategy performance management, which will solve above mention two problems.To apply balance score card (BSC) theory and three tools (strategy maps, BSC and strategy-focused organization) which designed by Kaplan and Norton, the author expatiates on the whole process that how OCTRE makes its BSC strategy performance management system: describe through strategy map, explain company strategy, view the organization from five perspectives: the financial perspective, the customer perspective, the business process prospective, the learning and growth perspective and major stakeholder prospective to make strategy understandable. The BSC transforms the company strategy object to measurable indicators. It provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective and enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the BSC transforms strategic planning from an academic exercise into the nerve center of an enterprise. The current performance management system to strategic performance management system should be upgraded to ensure strategy execution by building up a strategy-focused organization which adopts various measures such as separating organizational performance from individual performance, adjusting plan and budget process, leaning on tracking and direction, linking assessments with performance and improving performance enhancement process.The investigation of this paper provides guidelines for setting up BSC strategic performance management and it helps recognize some of the weaknesses and vagueness of previous management approaches. Meanwhile, the author makes breakthrough in expanding four perspectives of traditional BSC to five, by adding the major stakeholder perspective. It provides certain learning reference for other enterprises when they structure their own BSC.