如何使用平衡記分卡（How to use a balanced scorecard）

1、如何使用平衡記分卡（How to use a balanced scorecard）How to use the Balanced Scorecard.TxtspecialAuthor / Jiang Jihai Xuan GuoliangThe balanced scorecard is a comprehensive evaluation index system to measure and evaluate the enterprise. It is a combination of a series of financial performance measurement indic

2、ators and non-financial performance indicators, and is a management method.How to use the Balanced Scorecard?The balanced scorecard is a measure of comprehensive score index system, the evaluation of enterprise; is the synthesis of a series of financial performance indicators and non-financial perfo

3、rmance indicators; it is a kind of management method, which mainly focused on the realization of enterprise strategic target aspect. As a result, Kaplan and Norton used the Balanced Scorecard as the cornerstone of the strategic management system".Preliminary preparationEnterprise strategic posi

4、tioning according to their environment and their own resources, and to determine the strategic objectives, and communication and education at all levels of the enterprise, vision and strategic objectives of publicity of enterprises, by consensus. At the same time, managers and technicians are deploy

5、ed from different levels to form a balanced scorecard performance evaluation team. The main responsibilities of the team is to determine the evaluation criteria, evaluation system, data collection and data processing, performance appraisal, supervision and acceptance of feedback and correction of th

6、e index of performance evaluation process.TipsImplementation process of Balanced Scorecard(1) establish the company's mission, vision and strategy concisely and clearly.(2) set up an executive team to explain the mission, vision and strategy of the company.(3) conduct publicity, education and co

7、mmunication at all levels within the enterprise.(4) establish four specific target systems and evaluation standards of finance, customer, internal operation, learning and growth.(5) data processing. According to the index system, the original data is collected, and the weight of each index is determ

8、ined by expert scoring, and the data is processed and analyzed synthetically.(6) break down the indicators into enterprises, departments and individuals. The index is compared with the target to find the cause and effect relationship of the data change. Taking the Balanced Scorecard at the departmen

9、tal level as an example, each department turns its strategy into its own balanced scorecard. In this process, we should pay attention to the characteristics of each department, and should have their own unique and different goals and indicators in each of the balanced scorecard.(7) forecast and form

10、ulate annual, quarterly and monthly performance measures, specific figures, and plans and budgets of the company.(8) combine the annual reward reward system with the operating performance balance sheet.(9) implement the Balanced Scorecard to carry out monthly, quarterly, annual monitoring and feedba

11、ck implementation.(10) continue to adopt employee opinion, revise the Balanced Scorecard index, and improve the company strategy.Figure 1 the implementation process of the Balanced ScorecardEstablish the evaluation index system of the Balanced ScorecardThe Balanced Scorecard index system consists of

12、 four parts. The selection of the evaluation index system should be based on the actual situation of different industries and enterprises, as well as the strategic objectives and vision set by the enterprise. Tables 1 through 4 present detailed and specific lists of commonly used evaluation indicato

13、rs at four levels. As the index system is more, we can further subdivide the four parts of the index, so that more detailed investigation can be done at different levels. In Table 3, the internal operation process index according to different links of value chain can be divided into second layers: t

14、he index of innovation process, operation process, customer service service process, and each process has different specific indicators, listed as the third layer index. So, in the calculation process, can get the innovation process, operation process and customer service service value, after the ho

15、rizontal and vertical comparison of these values can be found in more detail problems arising from which links.OneSecond layers indexThird layers indexfinancial indexProfitability indexReturn on equityReturn on total assetsrate of capital accumulationSales profit marginCost, profit marginAssets oper

16、ationTurnover of total assetsTurnover rate of current assets, stock turnoverAccounts receivable turnoverNPL ratioDebt paying abilityAsset liability ratioCurrent ratioQuick ratioCash flow liabilities ratioGrowth abilitySales growth rateCapital accumulation rateGrowth rate of total assetsAverage growt

17、h rate of three years profitThree years average growth rate of capitalFixed assets renewal rateTable 1 financial indicatorsTwoSecond layers indexThird layers indexCustomer indexcostCustomer purchase costCustomer selling costCustomer installation costCustomer service costqualityquality control system

18、Reject rateReturn ratetimelinessOn time delivery rateProduct cycleCustomer loyaltyCustomer turnover rateNumber of customers lostCustomer retention costsAbility to attract new customersNumber of new customersNew customer ratioCost of attracting customersmarket sharePercentage of total salesPercentage

19、 of total product in this categoryTable 2 customer index structureThreeSecond layers indexThird layers indexInternal operating process indicatorsinnovation processR&D percentage of total salesR&D return on investmentPercentage of new product salesR & D design cycleOperation processUnit c

20、ost levelManage organizational cost levelsProduction line costCustomer service error rateSmooth business processAfter service processService cost / timeTechnical renewal costCustomer complaint response timeTime of deliveryDoor-to-door service speedTable 3 internal business processesFourSecond layers

21、 indexThird layers indexLearning innovation and growth indicatorsStaff qualityEmployee knowledge structureFull-time training cost per capitaPer capita on-the-job training feeTraining hours per yearAverage age of employeesEmployee productivityPer capita outputPer capita patentEmployees are perceived

22、by customersEmployee loyaltyEmployee turnoverThe turnover rate of senior management and technical personnelEmployee satisfactionEmployee satisfactionRate of employees' promotionInternal improvement ratio of managersOrganizational structure capabilityEvaluate and establish communication mechanism

23、 costsCoordinate departmental actions, objectives, and expensesEffective communication assessmentTeam work effectiveness evaluationAverage time to communicate information or receive feedbackinformation systemInput cost of software and hardware systemPercentage of employees with PCHardware and softwa

24、re system update cycleTable 4 indicators of learning, innovation and growthWhat should be emphasized here is that different enterprises can select key indicators according to their specific conditions. For example, according to the specific circumstances of the bank, the evaluation indicators select

25、ed by us Metro Bank are shown in the following table:financial indexCustomer index(1) return on investment;(2) income growth rate;(3) decrease in the cost of savings services;(4) percentage of income from services(1) market share;(2) degree of relationship with customers;(3) existing customer retent

26、ion rate;(4) customer satisfaction surveyInternal operating indicatorsLearning, innovation and growth indicators(1) profit and market share of each product or region;(2) the proportion of new product revenue to total revenue;(3) the transaction ratio of various marketing channels;(4) customer satisf

27、action;(5) the number of potential customer contacts per salesman;(6) new customer income per salesman.(1) employee satisfaction;(2) average sales per employee;(3) training results of strategic techniques;(4) strategic information provision rate;(5) the ratio of the bank incentive system to the empl

28、oyee's personal goals.Table 5 evaluation index of Balanced Scorecard in American Metro BankData processing flowThe key step of the balanced scorecard is to process the data comprehensively.From the index system can be seen, the index can be divided into two types, the first is the qualitative in

29、dicators such as the Metro Bank index system of "customer oriented index" in "the relationship with the customer's degree", the second category is the quantitative indicators, such as the Metro Bank index system in "financial indicators" in return rate of this type

30、of index should be accounted for most of the indicators. The specific processing flow is as follows:Qualitative data processingQualitative data processing, the international general method is to adopt questionnaire investigation method. Therefore, a questionnaire should be designed for the qualitati

31、ve data in the index system. In order to avoid the error caused by subjective judgment, increase the accuracy of qualitative indicators with membership assignment methods, qualitative indicators are divided into 7 grades (very good, good, good, general, poor, poor, very poor), corresponding to 7 1.

32、71 means different grades, but the degree of perception is different between grades. Since the standard has been included in the valuation process, the evaluation value can be calculated directly. The results of the survey were calculated using a weighted average approach.Quantitative index processi

33、ngQuantitative indicators of data values in accordance with the interpretation of the index and the company's specific circumstances to collect, the collection of data requires different departments to cooperate. Because the content and dimension of each quantitative index are different, it is v

34、ery difficult to combine directly. For example, the evaluation index in Table 5 of Metro Bank, the value is 80% if the customer satisfaction, service cost savings is a larger value hypothesis is 200000$, two index value is too large, and they have different units. In addition, in the horizontal or v

35、ertical comparison of enterprises, such as Haier and Changhong household appliances industry comparison, because of the specific situation is not the same, the evaluation really will be different degrees of distortion. Therefore, it must be the index, the quantitative index into the evaluation value

36、 of the original value.Determine the weights of the evaluation indicators of the Balanced ScorecardThe weight of the index refers to the degree of importance of the relative index of the index in the index, which is generally 100%, and the importance of each index in this index is assigned. A simple

37、 and reasonable way to determine weights is through expert scoring. The structure of experts should be reasonable, to the senior management personnel, the technical personnel of the enterprise, also have basic technical and management personnel, but also a business outside of the business or the ind

38、ustry familiar with the experts, such as members of members of industry associations, universities or research institutes. At the same time, the choice of weights for different enterprises should be graded according to the characteristics of different industries and enterprises. Such as high-tech en

39、terprises, technology updates faster, thus learning the weights innovation growth index accounted for the larger; for large enterprises such as the United States General Company, the smooth operation process is very important, so the index weight is relatively large; the banks and other financial co

40、mpanies, financial indicators are significant, the weight of the index nature is also larger. The following table is the weight of the various indicators of the Balanced Scorecard in the annual incentive system of the PIONEER oil company of the United states:Index formationFirst layer index weight%S

41、pecific index contentSecond layer index weight%FinanceSixtyComparison of profits and competitorsEighteenThe ratio of investors' return to competitorsEighteenCost reduction versus plan comparisonEighteenNew market sales growthThreeCurrent market growthThreecustomerTenMarket shareTwo point fiveCus

42、tomer satisfaction surveyTwo point fiveDealer satisfaction surveyTwo point fiveDealer profitTwo point fiveInternal operationTenCommunity / environmental protection indexTenLearning and growthTwentyEmployee work environment and satisfaction surveyTenEmployee strategic skill levelSevenStrategic inform

43、ation supplyThreeTotal100%100%Table 6 weight of various indicators of the Balanced Scorecard in the annual incentive system of the PIONEER oil company of the United StatesIntegrated data processingAfter the quantitative, qualitative data value and the weight of each index have been determined, the d

44、ata should be comprehensively processed. The order of data processing is reverse order, that is, to calculate the third layer index value, and then to find the second layer index value, and finally get the first level index value, as shown in figure 2.(1) the index value of the third layers: the abo

45、ve third qualitative and quantitative index values are multiplied with the corresponding weights of the third layers, and the third index values are obtained.(2) the index value of the second layers: multiply the index value of the third layers with the weight of the second corresponding indexes, an

46、d get the second index values.(3) the first layer index value (Balanced Scorecard overall value): third layers of index value and second layers of corresponding index weight multiplied, to get the first layer index value, that is the Balanced Scorecard of the overall value.Finally, the following tab

47、le is given:Total score of Balanced ScorecardFirst floorIndex valueFirst layer index weightFirst floorIndex valueSecond layer index weightThird layersIndex valueThird layer index weightFinancecustomerRunStudyTable 7 table of calculation results of the Balanced ScorecardComparative analysis of dataTh

48、e absolute value of the final value does not make much sense. You need to compare the data. Comparison can be divided into horizontal and vertical, internal and external, objective and subjective, short-term and long-term aspects of, such as the Balanced Scorecard and personal and individual balance

49、d scorecard Kirby enterprises more balanced score card, the enterprise internal departments. The following table 8 compares the vertical development of W firms at a time level. Compare before, want to consider the choice of comparison object, want to have comparable, compare standard should open, fa

50、ir, just.timeOne thousand nine hundred and ninety-eightChange%One thousand nine hundred and ninety-nineChange%Two thousandChange%Two thousand and oneChange%Two thousand and twoChange%Total score of Balanced ScorecardFinancecustomerRunStudyTable 81998 the balance sheet value of W enterprises and the

51、table of comparative changes of indicators in 2002From the data analysis of the index changes in the above table, we find the problems and causes and effects, and sum up experience and lessons. If the positive changes which indicators larger that the index operation is better, the Department, indivi

52、dual performance and salary system linked to the incentive for different performance employees or departments, and summarize the experience and promotion. If the reverse occurred which indexes vary greatly, indicating that the index operation is poor, should trace to its source, according to the cau

53、sal relationship to find the reasons, and take corresponding measures to solve the problem.Attached: a case of a balanced scorecard implementation in an enterpriseS enterprise is a small and medium-sized logistics distribution company established in 1998. With the competition of logistics and distri

54、bution industry intensifying, S enterprises feel great pressure on management, meanwhile, managers' strategic awareness is obscure and they do not know where to start. In addition, the enthusiasm of employees is not high. Therefore, the proposed 2003 enterprise senior business process reengineer

55、ing of enterprises, and establish the corresponding enterprise and employee performance appraisal system, and the associated performance and salary system, in order to motivate employees to achieve profitable growth. In addition, S enterprises intend to introduce e-commerce in 2003, while establishi

56、ng strategic alliances with upstream enterprises in the logistics industry. To this end, S enterprises at the end of 2002 to use the Balanced Scorecard to evaluate enterprise performance, to identify problems, and quantify the 2003 strategy, and the implementation of improved actions.Determination of strategic objectives and target systemThe key to the balanced scorecard is to translate strategic goals into practical actions. First of all, S company's strategic objectives will be divided into four parts, and d