The Study On Performance Management Of A CPA Firms Based On Balanced Score Card

Along with the rapid development in the market-directed economy, enterprises have been expanding their sizes and the way they operate has gradually diversified. In order to achieve a continuous improvement of the firms’research and development capabilities, resource integration, information processing capacities as well as pioneering the field of professional services capabilities, the accounting firms need to be diversified. Finns are faced with diversified competition triggered by both internal and external challenges. Managers must stand at the height of the strategic management of overall planning for the development of the firms. Scientifically strategic performance assessment and management system is the key to success.At the same time, the idea of different business sectors could coordinate together by performance management which will enhance the core competence of a firm as a whole and brand value is a firm’s center of strategic management.Kaplan and Norton introduced Balanced Scorecard theory in the20th century. Balanced scorecard combines the description, measurement and management of the strategies together which is a tool to develop the organization’s vision, mission, strategies and its internal staff management. Balanced scorecard is able to handle the relationship between corporate strategic goals and performance management through the four angles of the corporate strategic objectives. Those four objectives are broke down into those measurable indicators of the performance assessment. The enterprises would carry out the business activities around the strategic objectives while the coordination inside the organization generates great value.An accounting firm A is a medium sized firm with listing qualification. It is faced with significant opportunities and challenges so that the goal of becoming a bigger and stronger firm is its major development target. By introducing the balanced scorecard method into the performance management, the author could analyze the problem and the current status of the firm by decomposing the strategic target into four categories:Financial, client, internal process, learning and growth. The author could also establish the evaluation system and prepare the balance scorecard by departments. In this way, the author could solve the firm A’s problem in the organization coordination area and help the firm increase its enterprise vitality.Nowadays, there has been departments with apply the balanced scorecard method to the performance management of the accounting firm. However, it is rarely applied to diversified and group CPA firms. It can be identified as a creative spot and this article contributes to studying the firms’ organizational coordination. The article builds performance management system based on the Balanced Scorecard strategic objectives, key success factors (CSF) and business evaluation (KPI) and calculates the index weight by Analytic Hierarchy Process.