The Application Of BSC In Commercial Bank Performance Management

Commercial bank is the most important service main body in the modern financial market, it’s also the central operation of China’s rapid economic development. Management of Commercial bank has the basic characteristics of the general industry and commerce enterprise, but its own particularity exists. Because of the commodities in the commercial bank is monetary and financial services, the mode of operation is different from general industry and commerce enterprise. Commercial Banks plays an important role to the development of social economy and money supply.Since the21st centuries, Chinese financial industry open in faster progress, advanced foreign Banks have entered our country, commercial bank is facing unprecedented serious competition. With the rapidly changing environment, the traditional performance management methods cannot adapts to the trend of the development of the modern commercial bank. Traditional performance management method using simple assessment on financial indicators to measure the performance of business bank, ignore the influence of internal and external environment, so for the commercial bank, how to through the improvement of the performance management system to improve their own competitiveness, how to establish comprehensive financial factors and the non-financial factors on performance management, is very important to strategic development of commercial bank.The balanced scorecard as a strategic performance management tool, works through dividing the enterprise strategic objectives to the layers of decomposition, into four aspects of financial, customer, internal process and learn and grow to measure its performance. The balanced scorecard strategic aims at making center, its implementation process is also the process of development balance of enterprise, mainly reflects in:balance of objective indicators and subjective indicators, both short and long term goals, financial indicators and non-financial indicators, the structure and motivations, and so on.For commercial Banks, the balanced scorecard aims at strategic goals and vision, through the financial, customer, internal process, learning and growth four dimensions of analysis performance evaluation, the balanced scorecard overcome the limitations of traditional tools of only focus on financial indicators. Application of the balanced scorecard performance management system established the implementing process includes:(1) establish the balanced scorecard leadership and coordination team;(2) integrated internal and external factors, set the strategic goals;(3) according to the characteristics of commercial Banks, choose key performance indicators (KPI), constructing strategic map;(4) determine the weight of each indicator;(5) implementing the balanced scorecard, establish feedback process.This paper based on the research content of balanced scorecard to the commercial bank performance management system for the, through introducing the commercial bank of performance management of theoretical basis, compare the balanced scorecard to traditional performance management method, and introducing an application of balanced scorecard in performance management of commercial bank. The paper analyze the case of bank of China X branch, designing a balanced scorecard performance management system, combining theory with practice, analyzes the balanced scorecard performance management system in the commercial bank in the practical application.This paper mainly divided into five parts:The first part of this paper introduces the significance and the background of balanced scorecard, summarized and analyzed the research content related literature of balanced scorecard.The second part, through introducing the special business features of commercial bank, analyze the traditional performance management in commercial bank, introduced the commercial bank performance management theory basis.The third part, introduce of the concept of the balanced scorecard. Detailed introduces the balanced scorecard four dimensions, and at the same time, compare the balanced scorecard and traditional performance management methods in commercial Banks. The article introduces the establishment of the balanced scorecard based on the commercial bank performance management system process.The fourth part, case analysis. With the bank of China X branch as a case, the basic situation, the organization structure, management and financial situation analysis of X branch, according to the proposed strategy target of X branch design the balanced scorecard system, analyzes the balanced scorecard in practical application benefits.The fifth part, conclusions and researching prospect. Through summarizing the study conclusions, make summary of balanced scorecard, and expect the corresponding prospect.The purpose of this paper is to research in application of the balance scorecard in commercial bank performance management system. And with the case of bank of China X branch, studies the concrete implementation process of establishing balanced scorecard performance management system in the commercial bank.