How To Make Budget As The Tool Of Strategy Implementation And Evaluation?

With the development of social and economic, the competition between the enterprises becomes more and more intensely. Enterprises and managers’demands on value and profit also becomes more and more severe. Enterprises need diversify value creation through the value of units, which we describe it as the strategic target of enterprise. Nowadays, the academic study of strategy mainly divided into two branches:(1) How to form strategy? (2) How to operate strategy? In two branches, the formation of strategy is the main research object, and generated ten schools:strategic environment school, design school, school culture, etc. At present the academic study of strategy mainly focuses on strategy formation process and way, given more research and discussion to strategy formation, and ignore the research of strategy implementation and evaluation. However, in the actual operation, in the complex enterprise organizational structure, the value of management requirements in layers of conduction process often produce deviation even misunderstandings. The failure of the strategy implementation is caused by both internal and external causes. On the one hand, strategy setting and landing is a difficult work cause the complexity of the strategy itself and highly targeted execution of strategy. On the other hand, the implementation of strategic ultimately depends on the business and the main body of business executive and employees. Therefore the behavior of the inevitable deviation factor is a important cause of the failure of the strategy implementation.As two major branches of strategy, the formation of the strategy is the foundation of strategy implementation, and strategy implementation is the purpose of strategy formation and reason, which provide related information and resources for strategic adjustment. Therefore, we believe that the study of strategy execution is unable to avoid.At present, the research on strategic execution mainly focuses on the analysis of the factors affecting the strategy execution, factors such as the balanced score card, human resources, etc. However, strategy implementation was born with its own independence and complexity as an important part of strategic landing and achieving. Therefore, the existing theory of strategy implementation is still difficult to systems for strategy implementation plan and apply it in enterprise management practice.This article based on the existing research results and experience of A power company, and put forward the idea that budget can also shall be the instrument of strategy implementation and evaluation, cause it covers the whole process of business activities and special properties.Based on the above theory, this article obtains from the strategy implementation and evaluation. We will establish a framework for strategic implementation and evaluation. Budget management will be internalized in the framework and connected with strategic goal through the business implementation. In particular, the strategic implementation framework contains four main process:quantitative, revenue forecasts, capital expenditure forecast and cost of spending. The quantitative is the foundation of all work and also the key link in strategy implementation. The precise budget of revenue provides a more reliable basis for monetary flow which will be needed by strategic activities planning, and it can help the strategic budget in the execution to the ground. The electric power enterprise heavily related to national economy and people’s livelihood, which means its budget should based on the local economic policy. Capital expenditure account for the most important part of the annual expenditure share, and it also determines the grid resources into and grid resources distribution in the future. When it comes to cost budget, although it is less than capital expenditure, in actual work, the budget is the basis of the capital budget, and also provides necessary support for the enterprise operation and management activities. Accurate cost budget is able to achieve the overall strategy of precise control. Enterprises should apply budgeting tool to characteristic elaborate and decompose the strategy due to its characteristic which operates throughout the enterprise management activity. Only in this way, strategic thinking will be implemented to the enterprise’s day-to-day operations. Based on the work target and strategy, we put forward four big budget tools for the system:index quantitative, power prediction model, project reserve and homework cost management. By the execution of the budget tools we can implement strategy and fall it to the ground.Except to develop corresponding tools for strategic budget establishment, this article also put forward strategic evaluation model for the enterprise which is aimed at difficulties in the daily practice. Strategy evaluation should also stick to the strategic goal and targeted on accuracy, reliability and rate of progress. We put forward some budget tracking tools and fulfill the strategy goal through the analysis and track to the budget implementation. Firstly, we use project reserve library to evaluate the quality of grain depots, and make sure that the project implementation of every stage is not deviate from the strategic track through the warehouse stock of project quality control, in the library project control and outbound project quality control. In this way we can optimize the company resources configuration, and adjust the deviation between budget and target, improving resource allocation efficiency and effectiveness, to make ensure the accuracy of "strategic". Secondly, through examining from issued stage to the project budget spending phase during the process, we comprehensively measure the reliability of budget implementation data, and support the realization of the strategy of "reliability". Thirdly, we use the monthly project completion inspection to monitor and evaluate units in different stages of the project implementation, to ensure the implementation of the budget implementation schedule strategy of "progress" overall goal. After finished the budget, the budget execution phase still keep tracking and analysis of the budget, at the same time carries on the inspection according to the results of budget implementation. It is the biggest difference between strategic budget and the general budget.