Why the Balanced Scorecard Failed in Most Chinese Enterprises? Essay

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Why the balanced scorecard failed in most Chinese enterprises? Introduction With the development and integration of global economy, information spreads faster among different countries than before. As a result of that, new information and thoughts are no longer confined in a specific area and could also be shared in nearly all over the world. Starting from the 1980s, accountants in china began to study, research and then introduce the advanced methods in the management accounting of western world. Specifically, in the year of 1996, consulting corporations brought balanced scorecard (BSC) in china and aimed at helping multinational firms attain a comprehensive and effective improvement in organizational control (Xing, 2005).As a most significantly positive change of management accounting, balanced scorecard has its unique and essentially beneficial effects on strategic management, and many China’s companies already applied balanced scorecard in the performance assessment of employees. For instance, North China oil field of PetroChina, which introduced BSC in 2008, gained a distinct 12 per cent increase in both aspects of profit and manager executive force. On the whole, the progress of BSC in China can be divided into two phases. At the early stage, the main purpose of most domestic companies using BSC is to evaluate employee’s performance, and then it develops to the direction that could describe, measure and manage strategy, which requires Managers to make a full use of all resource to achieve the strategic goals. But in terms of the generally current situation, due to the reason that China does not have a similar economic and social circumstance as western countries, the application of BSC still exists some problems and only brings a limited benefits in company’s management. Furthermore, the majority of managers do not pay an enough attention to study and

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