The hottest new way to improve enterprise manageme

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A new way to improve the management ability of enterprises since the 1980s, the electronic industry has developed rapidly, and advanced processes have been continuously put into use. The fierce competition in the market economy objectively requires enterprises to pay more attention to the factors that affect the long-term and stable development of enterprises through unremitting innovation, rather than just focusing on financial results in the evaluation of business performance. However, the traditional business performance evaluation has been difficult to meet these requirements, and can not effectively provide services for management and decision-making, the realization of strategic objectives and the formation of competitive advantage, which will inevitably affect the development and research of new products, the development and utilization of human resources, the development and utilization of information technology, as well as the development and research of customers and markets

to solve these problems, experts and scholars designed the Balanced Scorecard (BSC). On the other hand, cost management and cost control require an objective and feasible evaluation scheme and evaluation system. At present, we usually only pay attention to the implementation of cost management and ignore the evaluation of cost implementation effect. Therefore, ABC automatically switches to household battery power supply during peak power consumption. M and BSC naturally have the feasibility and demand of combined application, and also provide a way for enterprises to improve their management ability

first, why BSC and ABCM systems need to be applied together

in 1990, Norton Institute in the United States presided over the topic of "measuring the performance of future organizations", and the results of its research are the prototype of BSC. Professor Robert S. Kaplan of Harvard Business School and David P. Norton, President of Renaissance solutions, created a set of enterprise performance evaluation system, namely BSC system, on the basis of this prototype. BSC is a comprehensive, comprehensive and systematic evaluation of the business performance and competition of enterprises by establishing a complete set of financial and non-financial indicator systems, including financial performance indicators, customer performance indicators, internal business process business indicators and learning and growth performance indicators. According to Professor Kaplan and Professor Norton's description of BSC, the BSC system divides enterprise performance evaluation into four perspectives; ① Financial: evaluate the financial performance and development prospect of the enterprise according to the financial results of the enterprise's operation and the current operation situation (income, cost, profit, cash flow, return on capital, etc.); ② Customer: measure the market influence of the enterprise from the perspective of external market and customers, evaluate the service quality of enterprise customers, so as to find problems and explore potential customers of enterprise products and services; ③ Internal operation: (internalprocess): focus on the evaluation of the internal management and business process of the enterprise. Through the analysis and evaluation of the internal application, enterprise managers and managers can find problems in management and institutional department settings, so as to promote the enterprise to establish its strategy and implement all important internal processes; ④ Learning & Growth: it embodies the enterprise's "people-oriented" development strategy, emphasizes the evaluation of human resource development and reserves, pays attention to the evaluation of employees' innovation and personal development, and encourages employees to give full play to their talents

the basic principle of ABCM cost management system is: products consume activities, and drivers lead to activities consuming resources. Therefore, the essence of ABCM is to analyze "resources drivers activities", so as to systematically manage enterprise costs. However, while analyzing and managing "resources drivers operations", we pay more attention to the analysis of operation processes and value chains, so as to provide more timely and Accurate and reasonable cost information

with the continuous development of enterprises, the business scale is increasing and the number of people is increasing, which requires enterprises to adopt standardized and systematic management methods. Generally, enterprises need to divide their internal organizations into different business centers and apply different evaluation standards to different business centers when evaluating performance, but generally speaking, they compare and analyze costs and benefits by setting different indicator systems, and BSC system is no exception; However, in the process of cost analysis, the cost information calculated according to the traditional cost method, especially for some products with a large proportion of public expenses, on the one hand, it is difficult to meet the evaluation requirements of enterprises for specific products, personnel and mechanical equipment, on the other hand, it cannot solve the timeliness requirements of cost information output. Therefore, it is proposed to combine the application of BSC system and ABCM system to solve the problem of scientific evaluation of the contributions of different products, personnel and mechanical equipment

second, what problems can the combined application of BSC and ABCM system solve for enterprises

bsc belongs to the performance evaluation system, which realizes the evaluation of specific departments and personnel by setting up financial and non-financial key index price systems, including long-term and short-term evaluation indexes. As a new management idea, when evaluating the factors related to cost, it often needs timely and accurate cost information. ABCM system provides it with complete cost data information. In general, the combined application of the two will greatly improve the management ability of enterprises. The specific problems that can be solved for enterprises include: ① meeting the needs of enterprises for cost evaluation; ② Meet the needs of enterprises for long-term strategic evaluation; ③ It can provide basic data for enterprises to evaluate the cost performance of specific departments, personnel, institutions and equipment

Third, how to combine the application of BSC and ABCM system

the BSC system itself is not implemented independently, but needs to be combined with a variety of functional modules of the enterprise in order to implement smoothly. For example, the management of customer markets and business processes is more combined with ERP system

in the evaluation of the effect of cost management, the combination of ABCM cost management and BSC is undoubtedly the perfect combination of advanced cost management ideas and strategic evaluation system, and will greatly promote enterprise cost management and strategic implementation. For the combined application of ABCM and BSC, we should pay more attention to the content of the combination of the two, which needs to be set from four aspects: strategies, measures, targets and action plans. Therefore, there are four key steps: setting strategic goals, setting measurement indicators, setting measurement standards To formulate an action plan, only when the above four are systematically and reasonably designed, can it provide an operable system basis for the combined application of ABCM and BSC, so as to provide more effective information for enterprise cost management. The implementation steps of the combined application of ABCM and BSC:

set strategic objectives → set measurement indicators → set measurement standards → formulate action plans

Step 1: set strategic objectives

the establishment of BSC system is inseparable from the setting of strategic objectives. The selection and setting of objectives is the foundation and key of BSC management system, and it is also the primary problem to be solved, because it is related to the planning of enterprise strategic development, At the same time, the strategic planning can be clearly stated

the combination of BSC and ABCM is mainly reflected in the internal operation module, so the operation process of BSC should be mainly considered when setting ABCM cost management objectives. The overall requirement of ABCM cost management system is to finally provide timely and accurate cost information, so as to serve enterprise decision-making. Based on this, when setting ABCM cost management objectives, we must consider its requirements for cost information, which usually include: timeliness and accuracy, product quality control, new product development and production cycle, rationalization analysis of activity chain and value chain, and the combination of long-term cost control and short-term cost control

Step 2: establish an index system

selecting and setting the most appropriate and effective measurement index for enterprise operation is very important for the implementation of strategic goals. The design of index system is an important part of ABCM cost management system and BSC evaluation system. It is also the development of enterprise cost strategy, which mainly includes the following five aspects: the implementation and specific description of development planning. A reasonable index system can make the complex cost management business of enterprises more organized, so that enterprise management can no longer find enterprise problems without thinking, but also provide a practical framework for enterprise cost budget, cost control and cost reduction

for activity-based cost management, because its basic principle is "resource driver activity", the setting of the index system must be analyzed from three perspectives: resources, drivers and activities. The specific steps basically include: analyzing and determining the resources consumed in the production process → identifying and integrating activities → describing the activity chain → selecting cost drivers → setting up the activity-based cost database → establishing the activity-based cost calculation system

Step 3: set the measurement standard

the measurement standard is to measure the effect of enterprise strategy implementation. Only by setting a reasonable measurement standard can we properly evaluate the implementation effect of strategic objectives, and also provide meaningful guidance for performance evaluation. As for the measurement standard, in the overall framework, enterprises should set one by one according to the index system, and in terms of value, they should refer to the value of relevant industry indicators more, and determine it according to their own development strategic positioning

After the index system is set, the implementation standard should be determined according to the set index. The determination of implementation standards usually requires compliance with enterprise strategic development goals, industry standards and customer standards

step 4: formulate an action plan

for the combination of BSC and ABCM, due to the differences in the nature of the two, formulating an action plan has become a work related to the overall situation. BSC mainly embodies the idea of strategic assessment, that is, it provides directional guidance for enterprises to conduct strategic assessment, and its content needs to be specifically determined according to the field of application. When BSC and ABCM are combined, the "internal operation" and "finance" modules of BSC are closely combined with the basic system of ABCM. The former is more strategic guidance, while the latter is more specific. Therefore, the formulation of strategic action plan tends to the application of BSC, The specific action plan is more analyzed from the application field. When formulating the action plan, we should follow certain basic requirements: ① based on the requirements of clarity and organization, the action plan should not intersect with each other, but should only be one-way instructions; ② Based on the operability requirements, the action plan should be broken down by level; ③ Based on the comprehensive requirements, the final subdivision result should cover the whole cost field

the action plan is the premise for the implementation of the strategic plan. Although there are still differences between the performance of our [wood plastic] composite flooring and wood flooring, the possibility of achieving the strategic objectives is largely determined by the action plan. The formulation of action plan can be divided into strategic action plan and specific action plan according to the level of detail. The former needs to be determined in combination with strategic objectives, while the latter is the embodiment and supplement of the former, emphasizing the operability of implementation. (end)

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