Study On The Application Of Balance Scorecard In Beijing Enterprises Water Group Limited

According to research,mismanagement is always due to improper implementation of strategies.While failures of strategy’s implementation are always due to lack of management control system.Thus management control system is a condition to implement strategy.The balanced scorecard(BSC)is a performance evaluation tool as well as a strategy management tool,which is introduced by Robert Kaplan and David Norton in America.Lots of research and practice have proved that BSC plays an important part in enhancing organization performance,successful implementation of strategy and development of enterprises.BSC have been imported to China for more than 20 years and tried in many industries except for water industry.Chinese urban water industry emerged from planned economy system and showed characteristics of regional monopolies.Influenced by operation mode of institutional units for a long time,water enterprises fell behind in management philosophy and performance evaluation.They need to bring in BSC urgently to improve the present situation.This thesis regards Beijing Enterprises Water Group Ltd.(BEWG)as research object.By internal investigation,many defects are found in BEWG’s performance measurement system.First,the measurement system lacks of hierarchy.Second,the measurement system focus obsessively on financial index and can’t measure the enterprises’ integral capabilities.Third,the measurement system is not sufficiently linked with strategy and is not useful for strategy’s implementation.Last,weight of index is not reasonable.Based on the review of literature about Balanced Scorecard,the author sets a new performance measurement index system respectively for group,subsidiary companies,functional departments and employees.The establishment of index system is on the foundation of four aspects and these aspects are finance,customer,internal process,learning and growth perspective.Additionally,social responsibility-related indexes are introduced to adjust the final evaluation result.Finally,the author develops implementation plans for BSC and puts forward suggestions of guarantee measures from organizational culture,technology,funds and so on.Result of this research is to put forward feasible scheme for promoting BEWG’s performance measurement level,which set an good example for water enterprises who intend to use Balanced Scorecard.