The Balanced Scorecard In The Performance Management Of Commercial Banks In The Applied Research

As a performance management tool in many commercial banks, the balanced scorecard combined financial indicators with non-financial indicators to be used for managing. The balanced scorecard has the advantage of flexibility, versatility, multielement and tact with respect to other way of performance management. Bank A is a branch of a joint-equity bank in China. This bank started building and implementing a balanced scorecard since 2010, during the period of this time, Bank A has made achievements but caused problems. This paper carried on theory analysis about performance management and balanced scorecard, by which it anlayed the function of the balanced scorecard in performance management. And it discovered that the use of balanced scorecard made a difference to the growth of performance levels and achievement of the strategic aims. The general idea of the paper about using balanced scorecard for strategy-oriented performance management system is following the design principle of the balanced scorecard, building enterprise mission, vision and strategy, and making a map of the strategy according to the strategy target to break up the strategy into a series of indicators for performance appraisal. And then, it diagnosed and feedback on performance by leveled implementation of balanced scorecard. In the end, the paper proposed implementation program and system in order to promoting the level of the performance management.In the paper’s case study, some financial outturns in implementation of the balanced scorecard in Bank A were put forward. Meanwhile, the paper analyzed the irrationality of architectonics about balanced scorecard in Bank A. During the process of implementation of balanced scorecard, some problems came out, such as bad assets continued to rise, big deposit index pressure, high staff turnover, the inspection data lag, advice to examination scores and bad assessment results. It spent a lot of time in analyzing why these problems happened and looking for the resons and corresponding solutions. Finally, strategy oriented performance management system was redesigned for Bank A by carrying balanced scorecard in the paper, which was good for improving of Bank A’s performance management level and offered reference to other banks.