Performance Management Based On Strategy

With the arrival of the information society and the increasing deepening of competition, more and more enterprises come to emphasize performance management. Each enterprise wants to effectively turn abstract strategy into concrete activities of the staff by means of perfect performance management so as to guarantee the successful execution of the strategy.In the aspect of the research on the relationship between performance management and the execution of strategy, wide attention has been paid to Balanced Scorecard (BSC) and Key Performance Indicator (KPI). This article refers to the perfect combining system of the two methods and explores the appliance of it through the construction of performance management system in the Marketing Department of a cement plant, in order to find a new way of performance management for reference for all the enterprises in China.First of all, the dislocation between the execution of strategy and performance management is pointed out in this article, and then BSC and KPI are introduced and their characters are analyzed separately.Secondly, a thorough investigation and study into a cement plant is put up. The strategy of the enterprise is formulated on the basis of the analysis of the interior and the external atmosphere.The third part concerns how to establish a performance management system which combines BSC and KPI in the Marketing Department based on the strategy of the enterprise. In this article, a set of departmental performance indicators is designed and the key performance indicators for each post are laid down as well.Finally, a proposal to establish a circulating system of performance management is put forward in order to carry out the performance management effectively. The staff will be guided to realize the goal of organization through the process of performance plan, performance guiding, performance examinations and the feedback of performance results which the supervisors and the employees all take part in.