Balanced Scorecard Strategic Concept And Applied Research

Facing the coming of knowledge economics, the operational environment inside and outside the corporation changes largely. The asks of customer for quality become higher and higher and the updating periods of products become shorter and shorter with the development of technology. In this situation firms have to forecast the needs of potential clients and own the strong ability of innovation to keep their existence and development. With knowledge capital becoming more important than ever before, firms must enlarge its investment and operation, regard the service to interest interrelated, strengthen the cooperation and harmony with other corporations.Under the new circumstances, firms must own the strategical dominance to keep the continuous and steady developments, which asks senior manager to consider not only the inside improvement and integrity but also outside effect and condition, not only the operation of physical capital but also the importance of knowledge capital. So when evaluating operational performance we cannot just judge the financial outcomes but should think much of the factors which affect firms' long-term developments. Obviously, traditional operational performance evaluation method cannot meet with these asks, so Balanced Scorecard emerges as the times require. From the born as a performance evaluation tool in 1992, BSC has been developed to strategic management tool, and been well-known as the second in the election of "the ten most effective management theory" launched by Harford Business Review. Since BSC was introduced to China, it has attracted most of the senior manager. Chinese company needs the injection of new management method. But we are not willing to see the pursuit and follow with blindness. Just because this, we need more research and understand the spirit of BSC. May what I am doing can benefit the improvement of management of Chinese company.