Balanced Scorecard Application Practice

Author: Jin Yan
Publisher:
Publish Date: 2004-02-01
Features: The Balanced Scorecard (BSC) has revolutionized traditional performance management methods that solely focus on financial indicators. Traditional financial accounting models can only measure past events (lagging result factors) and cannot evaluate an organization's forward-looking investments (leading driver factors). In the industrial era, management methods that emphasized financial indicators were still effective. However, in the information society, traditional performance management methods are incomplete. Organizations must invest in customers, suppliers, employees, organizational processes, technology, and innovation to gain competitive momentum for sustainable development. Based on this understanding, the Balanced Scorecard method believes that businesses should examine their performance from different perspectives to achieve a comprehensive and balanced view. The goals and evaluation metrics in the Balanced Scorecard are derived from organizational strategy, transforming the organization's mission and strategy into tangible goals and measurable indicators. Currently, BSC is very popular in the U.S. and Fortune 500 companies. The Balanced Scorecard is a core strategic execution tool and a novel performance measurement model. It is a multi-dimensional management system that implements strategic management through four dimensions—financial, customer, internal processes, and employee learning ability. Currently, managers are filled with curiosity, admiration, or even prejudice toward the Balanced Scorecard. Many organizations have a somewhat unclear understanding of the Balanced Scorecard but are still using it. Faced with this situation, we hope to present the true concepts, ideas, and management techniques of the Balanced Scorecard to the management teams that need it through this book. At the same time, we will share our experience in implementing the Balanced Scorecard in enterprises through case studies. This book uses simple and vivid language to provide a systematic and clear explanation of the theory and practical operations of the Balanced Scorecard. The author hopes that through the dissemination of this book, it can serve as a reference for more people who want to understand the Balanced Scorecard.