The Research Of Application About Strategy Focused Organization Of Domestic Insurance Companies

The author of business comment found that most companies had great growing plan but few of them can finish it. In an authority research of 1854 companies in the global wide, there are five in eight companies can't get the profitable increase. However, 90% of these companies had established elaborate strategy plan and set down some ambitious strategy targets. Obviously, there exists a gap between strategy setting and strategy execution in most companies. But then, this thing can be evitable completely. In the past 20 years, Robert·Kaplan and David·Norton researched a lot of good performance companies which made use of Balanced Scorecard system and used some relevant tools to deliver the strategy, direct, monitor the strategy execution. Some of these companies got greater and longer effect than any one else which made use of BSC to establish the Strategy Focused Organization that can integrate kinds of resources in the company and make them focus on the strategy of company in order for effective strategy execution.The BSC has been used in the manufacturing, servings and government including insurance companies since it is introduced to China. In less than 10 years'practice, there exist successful and unsuccessful examples so the BSC becomes a disputed management tool in China. According to a research made by Shanghai eGate consulting Ltd.,the main reason of unsuccessful practices is the wrong orientation that BSC is used as a performance management tool not a strategy management tool and lack of constant support of senior leaders which can result in bad strategy transmit and strategy execution. This phenomenon of BSC application is pervasive in China which is the problem this article tries to work out.The establishment of Strategy Focused Organization is the key of translation that BSC as a performance management tool translates a strategy management tool. The SFO is the middle period of the BSC's development which is mainly used to solve the problem about strategy translation and strategy execution. The SFO is established by Robert·Kaplan and David·Norton who is the founder of BSC in the Harvard Business Comment in 2001. It's a relatively perfect strategy execution system which is fit for the transit which is from extensive market competition to intensive strategy competition. From that on, SFO is applied widely in the western developed countries in which a lot of companies got the success and strike up the strategy advantage.It has been 5 years that BSC was used in the insurance company in China which is in the primary class basing on the performance management, for example in TaiKang Life Insurance Company, PICC, Pacific Life Insurance Company, Pinan Insurance Company. However, this performance can hardly be called success because the efficacy of BSC is not enough. The SFO is the key to dig the efficacy of BSC which is necessary not only for development of BSC but also for development of Insurance company in China. Up to now, the structure of insurance market in China is formed and the pattern of competition of insurance company is changing to strategy competition so it's time to translate BSC's function focused on performance but on strategy which needs a strict and effective strategy execution system——SFO.This paper is based on insurance, economics, accounting, and the management theories, combining research approach of comparative analysis and analyzing theory synthetically. According to domestic actual conditions, this paper develops the idea of implement SFO in our insurance companies. The thesis divides into three chapters, the concrete structure is as follows:Chapter 1 is about the theory summary and the application actuality of SFO. First, this part introduced what SFO is, how it came out and became popular and the relation between the SFO and BSC in the way of theory. Then, the application actuality of SFO inside and outside of country was introduced which established a big background for the SFO's application in the domestic insurance companies.Chapter 2 is focused on the necessity and feasibility analysis about establishment of SFO in domestic insurance companies. This part firstly introduced the application actuality of BSC in domestic insurance companies which is the premise of the application of SFO. Then, basing on the premise and the circumstance of insurance companies'management, the necessity and feasibility about SFO's application in the domestic insurance companies were analyzed respectively.Chapter 3 is focused on the establishment of SFO in the domestic insurance companies. This is the core part of this paper which analyzes how to establish the SFO in our insurance companies in the way of five principles of SFO. First of all, concrete analysis of five key steps about SFO. And then, taking TaiKang Life Insurance Company for an instance, analyze how to establish the SFO in the domestic insurance companies. At last, there are some problems which are should be faced up in the course of establishment of SFO basing on the application experience and there provides some suggestion.Innovation:1. The selection of the thesis is new and practical. SFO is a new subject. So it has realistic significant. Then the subject must use insurance, economics, accounting, and the management theories, it is fully show the study of insurance accountancy is comprehensive.2. The thesis emphasis both the theory and the practice. The thesis emphasizes on using SFO to solve the problems in strategy execution in our insurance companies. The thesis tries to give the respective indicators and give each of them explanations.The deficiency of the thesis is that the depth and width of study is not enough.