A Study On The Effectiveness Of The Balanced Scorecard In Implementing Firm's Strategy

Professor Kaplan and Norton proposed the concept of Balanced Scorecard in 1991,since then,Balanced Scorecard has been widely used in practice,known as the most influential strategic management tools in 75 years.However,scholar's study shows the usage of Balanced Scorecard vary widely in different regions.One of the main reasons is that the senior management of enterprises have different understandings on the positioning of the scorecard to: a large number of practitioners take the Balanced Scorecard as a performance evaluation tool rather than strategic management tool.Research shows that those who take the Balanced Scorecard as a strategic management tool feel it more effective.Company M is a small and medium-sized private enterprise,it is keenly aware of the Balanced Scorecard in the implementation of corporate strategy effective role,and actively practice,produced a good feedback.Therefore,based on the case of M Company's Balanced Scorecard,this paper attempts to analyze the strategy of the company through the internal and external environment analysis,use strategic map to decide strategy,the strategy is divided into various business units and functional departments,to develop goals and targets consistent with the strategy,and continue to study and feedback learning to improve the Balanced Scorecard system,hope can be applied to China's enterprises in the Balanced Scorecard practice.Starting from the research contents and logic,this paper first summarizes the important significance of intangible assets in the implementation of enterprise strategy in the information age,and analyzes the important role of Balanced Scorecard in measuring enterprise intangible assets and implementing enterprise strategy.Summarize the application of the Balanced Scorecard in the world,and analyze the reasons for the disparity in the use of Balanced Scorecard in different regions,that is,because practitioners should not understand the Balanced Scorecard as a performance management tool or a strategic management tool The use of the Balanced Scorecard as a strategically successful business and region has a stronger sense of identity for the Balanced Score,which illustrates the important role of the Balanced Scorecard in relation to the corporate strategy.Which leads to the significance of this study.In the case analysis of the core content of this article,the article first introduces the overall design idea of the strategic management system based on the Balanced Scorecard.And then the M company in which the industry was introduced,combined with the company's development status,M companies face the internal and external environment analysis,clear the company's mission,vision and values,and in accordance with the relevant theory to determine M company's five-year strategic objectives.After the strategy is determined,it will use the strategic map to decompose the overall strategy of the enterprise into a number of strategic themes,identify the corresponding targets and measures,and study the development of strategic action programs.In the specific implementation process according to the business units and functional departments of the different circumstances of the strategic decomposition of different business units and human resources as an example of how the overall strategy of decomposition,resulting in synergies.And then analyzed the M company's monitoring and feedback mechanism.Finally,this paper summarizes the effect of M's use of the Balanced Scorecard and introduces the concept of strategic readiness.It shows that after the implementation of the self-balanced scorecard,the strategic readiness of the intangible assets of the Company has been greatly improved,which has promoted the optimization of internal processes,To improve customer satisfaction,and ultimately reflected in the financial indicators.The research of this paper further highlights the important role of the Balanced Scorecard in the strategic management,and summarizes and summarizes the problems and accumulations of the Balanced Scorecard in the organization and the promotion and implementation of the functional departments Experience,and targeted to put forward their own suggestions and opinions.The research of this paper has a good inspiration and reference significance for the application practice of the existing enterprise Balanced Scorecard.