The Use Of Balanced Scorecard In Performance Management Of City Commercial Banks

Since the90s of last century,City commercial banks has developed rapidly.After China’s accession to the WTO,financial markets continue to open to the public, followed by the big changes in the operating environment. In this overall context,the state of the competitive situation has evolved into a clear direct contest between the domestic banks and the large foreign banks. For city commercial banks, the situation is even more severe. Facing with this situation, the strategic issues begins to be concerned by the city commercial banks, but compared to the formulation of strategy, the implementation of the strategy is ignored.Many city commercial banks still mainly through traditional financial indicators to evaluate the performance management.The strategy has not been implemented effectively. This approach ignores the city commercial banks, non-financial factors, and it can not promote the development of city commercial banks and is not meet to the current operating environment,and unfavorable to achieve the strategic objectives of the city commercial banks.Therefore, the performance management of city commercial banks urgently need to improve, and the tools of helping to achieve the strategic objectives of the city commercial banks performance management is also very necessary. Balanced Scorecard can adjust strategic programs according to changes in the environment timely,and evaluate the operating conditions of the city commercial banks comprehensively, and provide a foothold for the strategic management of the city commercial banks.Therefore,the introduction of the Balanced Scorecard decision management contribute to the long-term development goals of the city commercial banks.This paper first reviews the course of development of city commercial banks,and clears research background and significance. Second, we introduce the origin and development of the Balanced Scorecard, and introduce the connotation and its successful application in foreign banks. The third part of the paper find problems from the city commercial banks performance management, combine with the superiority of the balanced Scorecard, and explain the necessity of Balanced Scorecard in city commercial banks.The fourth part build the Balanced Scorecard implementation steps for the city commercial banks.The fifth part raise some measures for the promotion of city commercial banks introduced the Balanced Scorecard performance management.Finally a summary of the research has been done to provide reference for the performance management of the city commercial banks.