The international development process of the hotte

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The international development process of the Balanced Scorecard

the balanced scorecard has experienced more than ten years of development since its birth. I can roughly divide it into three periods: germination, theoretical research, promotion and application. From these three periods, we can roughly see how the balanced scorecard, if it is part deformation and wear, came into being, developed and became an important management tool widely accepted by the global business community:

the embryonic period of the Balanced Scorecard (year)

before Robert S. Kaplan and David P. Norton studied the balanced scorecard, Analog device (hereinafter referred to as "ADI") first tried to practice the Balanced Scorecard in 1987

ADI is a semiconductor company, which mainly produces analog, digital and digital analog mixed signal processing devices. Its products are widely used in the fields of communication, computer and industrial automation. Like most other companies, ADI adjusts its strategic plan every five years to review the implementation of the original plan while formulating a new strategic plan. However, just like the strategic problems that managers often encounter, the documents formed after the "formulation of strategic plan" is regarded as a "task" are put on the shelf and cannot be implemented in the daily production and operation of the company

in 1987, ADI company began to adjust its strategic plan. Different from the previous ones, the decision-making level of the company realized that the strategy should not only focus on the formulation process itself, but also pay more attention to the implementation of the strategy. They hope that through face-to-face communication with the company's employees, they can fully understand and agree with the company's strategy. At the same time, the company's senior management also hopes to closely implement the strategy into daily management to promote the implementation of the strategy. This time, the form of ADI's strategic document has changed significantly. They abandoned the previous strategic document that was dozens or even hundreds of pages long, and reduced all the strategic documents to a few pages long. In the process of formulating the strategy, ADI company first identified the important stakeholders of the company as shareholders, employees, customers, suppliers and communities. Then, under the company's mission, values and vision, ADI company set strategic goals and clarified the strategic focus of three key points according to the "interests" of the above stakeholders

in order to ensure the realization of strategic objectives, especially the three key strategic objectives, ADI has implemented a sub project called "quality improvement", referred to as QIP ("quality improvement process"). At the same time of the project, ADI company continued to transform the key success factors of the realization of strategic objectives into annual business performance plans, thus deriving the prototype of the world's first balanced scorecard

in the process of implementing total quality management in ADI company, the company specially invited some management scholars to participate in the implementation of activity-based costing (ABC). Robert S.Kaplan, a professor of Harvard Business School, is one of them, including oil cylinders, electromechanical, button boxes, columns, lead screws, etc, He himself described how he found the process of ADI's scorecard: "in the process of visiting and sorting out cases, we also textualized a scorecard used by the company's top management to evaluate the overall performance of the company. In addition to traditional financial indicators, this Scorecard also includes customer service indicators (mainly involving delivery time, timely delivery), internal production processes (output, quality and cost) and new product development (innovation) ¡­ "

in the process of helping ADI company implement ABC, Kaplan found ADI's balanced scorecard and recognized its important value. Although Kaplan and Nolan Norton deepened academically in the later stage and extended it to global enterprises, the contribution of ADI to the balanced scorecard is still something we cannot avoid and ignore. When I provide balanced scorecard consulting services for enterprises all over the country, I often ask myself: if there was no ADI scorecard prototype, would there be today's balanced scorecard

theoretical research period of Balanced Scorecard (years)

in the days after Professor Robert S. Kaplan found the first balanced scorecard of ADI company, he and David rton, President of Nolan Norton, began the theoretical research of balanced scorecard

the research topic of Balanced Scorecard begins with the company's performance appraisal. In 1990, Nolan Norton, the Renaissance global strategy group in the United States, set up a one-year development of a new corporate performance appraisal model. David rton, the executive president of Nolan Norton, served as the project manager of the project, and Robert S. Kaplan served as an academic consultant. Twelve famous companies including general electric company, DuPont, HP and so on also participated in the development of the project. The project team focused on the in-depth study of ADI's scorecard and its expansion and deepening in the company's performance appraisal, and named the research results as "balanced scorecard". The final Research Report of the group elaborated on the significant contribution of the Balanced Scorecard to the company's performance appraisal, and established four core dimensions of the Balanced Scorecard to test the investment of 2.2 billion yuan in the biological composite project: finance, customers, internal operation and learning development

at the beginning of 1992, Kaplan and Norton summarized the research results of the Balanced Scorecard in the Harvard Business Review, which is the first paper on the Balanced Scorecard published by them. The title of the paper is "balanced scorecard driving performance indicators". In the paper, Kaplan and Norton described in detail the benefits obtained from participating in the initial research project in 1990 and using the Balanced Scorecard for corporate performance appraisal. After the paper was published, Kaplan and Norton were soon invited by several companies, and the Balanced Scorecard began to get the attention of the business community

the second important milestone in the theoretical research of balanced scorecard is that Kaplan and Norton extended the Balanced Scorecard to the strategic management of enterprises in 1993. In the initial practice of enterprise balanced scorecard, Kaplan and Norton found that the balanced scorecard can convey the company's strategy. They believe that the balanced scorecard is not only a tool for corporate performance appraisal, but also a tool for corporate strategic management. For this reason, Kaplan and Norton published the second important paper on the Balanced Scorecard in the Harvard Business Review, "using the Balanced Scorecard in practice", in which they clearly pointed out that enterprises should select performance evaluation indicators according to the key success factors of enterprise strategy implementation

the promotion and application period of the Balanced Scorecard (1994 to now)

after Kaplan and Norton extended the Balanced Scorecard to the strategic management system of enterprises in 1993, the Balanced Scorecard began to be widely accepted and recognized by the global business community. More and more enterprises benefited from the practice projects of the balanced scorecard, and the Balanced Scorecard also extended to non-profit organizations

taking the United States as an example, relevant statistics show that by 1997, about 60% of the Fortune 500 enterprises in the United States had implemented performance management, while in the so-called financial service industries such as banks and insurance companies, the proportion was higher, which had nothing to do with the overall excellent performance of American enterprises in the 1990s. Take another look at the government. The BSC proposed in the early 1990s that the US government passed the government performance and result act in 1993. Today, almost all departments, arms and most state governments of the U.S. federal government have established and implemented performance management, and the current focus has shifted to the implementation of performance management at the city and county levels

the balanced scorecard was first implemented in many enterprises in the United States and has now been extended to enterprises in many countries around the world. Today, when senior managers of Chinese enterprises who have implemented the Balanced Scorecard project talked about strategy and performance management together, they often praised the great contribution made by the Balanced Scorecard to its practice. In the industry, the balanced scorecard has been involved in almost all industries, and the demand for the balanced scorecard by enterprises in all industries around the world (even some non-profit institutions) has doubled every year. According to the survey of Balanced Scorecard collaborative Pty Ltd in 2003, 73% of the surveyed enterprises worldwide are implementing or planning to implement the Balanced Scorecard in the near future; 21% of enterprises maintain a wait-and-see attitude towards the Balanced Scorecard; Only 6% of enterprises do not plan to implement the Balanced Scorecard:

the balanced scorecard has been widely recognized by enterprises in the United States and even around the world, marking that the balanced scorecard has entered an era in which expensive methods similar to "tearing tape" must be used to peel off all levels of promotion and application! However, in the process of the promotion and application of the balanced scorecard, its theoretical system is also constantly enriched and improved:

in 1996, Kaplan and Norton continued to publish their third paper on the Balanced Scorecard in the Harvard Business Review. On the one hand, they reiterated the importance of the Balanced Scorecard as a strategic management tool for enterprise strategic practice; On the other hand, it draws the essence from Peter/Drucker's goal management, and explains the framework of the Balanced Scorecard as a strategy and performance management tool in the paper. The framework includes setting goals, preparing action plans, allocating budget funds, performance guidance and feedback, and connecting salary incentive mechanisms. In the same year, they also published the first monograph on the balanced scorecard, the balanced scorecard, which expounds the above two aspects of the Balanced Scorecard in more detail

with the popularity of the Balanced Scorecard in the world in 2001, Kaplan and Norton published their second monograph on the balanced scorecard, strategic center organization, on the basis of summarizing the successful experience of many enterprises. In this book, Kaplan and Norton pointed out that enterprises can establish the internal organization and management mode according to the company's strategy through the balanced scorecard, and make the core process of enterprises focus on the strategic practice of enterprises. The publication of this book marks that the balanced scorecard has become an important tool for organizational management. (end)

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