I strategic management control and operating performance management control 1. Strategic management control is based on management control system. "Magnus established a strategic model with three key variables: strategic mode, strategic mission and strategic position." He further constructed a hypothetical relationship diagram between the strategic mode, strategic mission and strategic position and the design and application of management control system, pointing out that the design and application of management control system should be based on the strategic mode and its determined strategic mission, and then the management control system should adapt to the strategic position. Different strategic positions may lead to strict control or loose control in control design, and budget system is the most sensitive to strict control or loose control in management control system. 2. The evaluation of the so-called enterprise performance management control must have a reference standard. An effective performance evaluation standard should at least include financial factors, and the main source of financial factors is the budget management control system. According to this standard, we can not only evaluate business performance, but also determine further incentive and reward levels. Its purpose is nothing more than to promote the available resources (such as people, equipment, facilities, time, funds, materials, etc.) to play the most effective role. ). Like the strategic management control system, the performance management control system can also be divided into strict control and slack control according to the degree of supervision over the whole management control system. However, strict control or loose control has great influence on the realization of budget objectives and budget management. Second, the correlation between budget and strategy, business performance 1, the relationship between budget management control and strategic management control On the one hand, strategy, as the premise of budget, provides a framework for budget compliance; On the other hand, as a tool to link the company's strategy and operating performance, budget can solidify and quantify the established strategy in the form of budget to ensure the ultimate realization of the company's strategic objectives. Combining the formulation and implementation of the budget with the company's strategy will help to adjust the company's strategy, get feedback on opportunities and challenges, and finally improve the company's strategic management level. 2. Relationship between budget management control and business performance management control On the one hand, budget is the basis of performance appraisal, and scientific budget target value can be used as the comparison benchmark of performance appraisal indicators between companies and departments; On the other hand, theoretical research proves that high-level budget targets have a positive impact on managers' attitude and performance. While budget management provides reference value for performance appraisal, managers can constantly revise and optimize the performance appraisal system according to the actual implementation results of the budget, so as to ensure that the appraisal results are more realistic and truly play the role of evaluation and encouragement. In the whole management control system, the relationship between budget, strategy and operating performance is essentially a circular process with causality as the logical main line and end to end. On the premise of strategic management, budget management control is carried out around the realization of strategic objectives, and then managers' operating performance is measured based on the standards determined by budget management, and then the formulation of strategic objectives is decided, and whether enterprises adopt existing strategies or implement new strategies is decided. Third, the re-understanding of budget management control 1, misunderstanding of budget management and its causes At present, there are still many misunderstandings about the role of budget management in Chinese enterprises, among which the most typical and easiest misunderstanding is that budget management is only the work of the financial department itself. There are two main reasons why budget management often fails to achieve the expected results: first, the budget model used by managers is inaccurate, so the forecast given is wrong, and the actual performance is of course difficult to match it; Secondly, under the mechanism of evaluating and further encouraging managers' performance based on budget, managers' functions may lead them to deviate from the level of budgeting and actual report implementation. Because at the beginning of budget preparation, managers may deliberately influence the budget preparation process, making the budget far from reality. They may also adjust their actual business behavior in order to make the actual implementation meet their expectations and reach the budget level. The ideological root of these two reasons lies in separating budget management from departments such as enterprise strategy and performance evaluation. On the one hand, it is impossible to participate in the budget around the strategic management objectives, and it is impossible to build or get the correct budget model, so the forecast is wrong and the actual performance cannot match it; On the other hand, the management control of performance evaluation process is not fully considered in the process of budget formulation, which makes operators deviate from the original intention of budget management, make self-interested behaviors and create personal interests in the process of budget formulation or implementation. 2. Building a budget management control system completely related to strategic management and performance management If we want to build a budget management control system completely related to strategic management and performance management, we should improve the budget management control system of most enterprises in China from the following aspects: First, the construction of the budget management control system should be a process of full participation and strategic planning. The responsible department and the responsible person should be distinguished according to the principle of equal rights and responsibilities. Any department or individual that has an impact on the realization of enterprise strategy and objectives should be given corresponding powers and assume corresponding responsibilities, and strict budget control should be implemented on the premise that relevant departments fully participate in the formulation and conform to the overall strategic development of the enterprise. Of course, this process should also allow moderate budget flexibility and budget flexibility after coordination and unification of various departments. Second, the construction of budget management control system should implement the innovation of performance management control. To establish a performance management mechanism corresponding to budget management control, we must first reflect the enterprise value created by employees and emphasize the long-term performance of enterprises, rather than short-term benefits; Secondly, there should be enough incentive and attraction to give full play to the creativity and initiative of employees; Finally, we should pay attention to the constraints in the incentive, and take severe punishment measures for the relevant departments and individuals who fail to achieve the budget objectives, so as to promote the horizontal competition within the enterprise organization. Thirdly, the construction of budget management control system should emphasize the important position of budget management as the basis for implementing rewards and punishments, encouraging subordinate units to work hard, coordinating supply and marketing activities, communicating information and discovering future difficulties. A survey shows that the order of importance of budget management of large and medium-sized state-owned enterprises in China is: clear objectives, control costs, complete superior tasks, implement reward and punishment basis, allocate funds, motivate subordinate units to work hard, coordinate supply and marketing activities, communicate information and discover future difficulties. In this ranking, the most important role of budget management in people's minds should belong to the most basic functions of budget, and these basic functions are far from meeting the requirements of the long-term development of enterprises for the whole budget management control system, so we must update our understanding of the role of budget management in concept and emphasize the important role of budget management in the implementation of rewards and punishments, incentives, coordination, communication and future development.