Research on the Design and Performance Evaluation of Comprehensive Budget Management Based on Strategic
|School||North China Electric Power University|
|Keywords||comprehensive budget management based on strategy BalancedScorecard DEA|
With the gradual development of the reformation and the improvement of market economic system, China’s enterprises are facing to an increasingly fierce competition in the market. The way how to balance the financial indicators non-financial indicators in the budget arrangement in order to develop a scientific and reasonable budget management program, and the way how to ensure the budget program implement efficiently in order to improve the daily production management level and operating results, are both significant for enterprise integrated management.In this paper, the characteristics and the principle of overall budget management were reviewed, the process of overall budget management process was researched, and the important effect of overall budget management for enterprise development was analyzed. Through the analysis of modes of single study point budget management, operating budget management and beyond budget management, the advantages and shortcomings of each mode were reviewed. On aspect of the relation between strategy and budget, the necessary of comprehensive budget management model based on strategy were concluded. And five core elements of the overall budget management model based on strategy were designed.In this paper, by means of the Balanced Scorecard management tool, the overall budget management model based on strategy were designed in accordance with the process system that general objective established, budget organization establishment, budget preparation, budget execution, budget supervision and evaluation, and adjustments budget. As the overall budget management objective was designed, the four key areas of the balanced scorecard were taken allowed enough. By the way of balanced scorecard, the strategy objective was turned to elaborate indicators, the traditional organization system was adjusted by non-financial indicators of balanced scorecard, and the processes of budget organizations built, budget implementation, budget monitoring, budget evaluation and budget adjustments were all refined.Data envelopment analysis (DEA) method was chosen to evaluate the performance of the overall budget management based on strategy. In the establishment of DEA model, the input and output indicators were selected according to overall budget management features. ABC Coal Company whose budget management model was changed from single study point budget management to overall budget management based on strategy was chosen to be the DEA sample. With the financial data of three years before the change and financial data of three years after the change, the DEA model was studied to evaluate the effect to performance caused by overall budget management based on strategy. The design of overall budget management based on strategy and the study of the effect to company performance came from this kind budget model are great significant. It’s also effective guidance for the corporate budget management mode decision.