Application Study Of Balance Scorecard For ZTE Performance Management System

Performance management system is essential to an enterprise operation. It is not only atool for company's operation result supervision, but also a vital important tool for company strategy management. Since the invention of Balance Score Care, abundant company has adopted it as the performance and strategy management tool.ZTE company is a public company, it is the biggest telecommunication equipment and service provider enterprise in Chinese stock market. In 2011, ZTE company's finance report started showing 0.9 billion RMB deficit, while it turns to 2.8 billion in 2012. On this background, ZTE company did a deep research to chase the reason of deficit. Finally, they changed the original performance evaluation system “Order, Delivery and Receipt as the valid income” to the “End to end process profit”, which involves Cost, Refunding and Bad debt reservation. After the change, ZTE company's finance status turns better, while the new assessment model recovers the company finance status but not change the company's assessment indicators to drive indicators.Under this circumstance, to optimize ZTE company's performance management system,with referring to documents, analyzing cases, interview, and investigation method, based on the performance management theory, I chose the Balanced Scorecard performance management system as the optimization scheme and analyzed the enterprise information,figured out the company's strategy and depict the strategic map. I chose ZTE company's sales division as the sample, work out the company level and department level balance score card. I also listed the recommendation of implementation Balance score card with the reference of other executed company.This thought of design ZTE company's balance score card shows a reference to the other enterprise how to design their own Balance score card management system through the investigation. It also provides the sample of how to make company strategy for execution, and improve the overall performance to gain the competitive position in the market.