Enterprise Performance Measurement System Research Based On Incremental Value

Performance measurement (PM) is challenged by the change of economic circumstances, the development of management theory, and the requirement of stakeholders. These challenges can be concluded to three basic questions: How to support the realization of incremental value (IV) target? How to link PM with longterm IV and everyday management? How to meet the IV information requirement of all stakeholders?First, the frame cognition of information constitutes to establish PM system and basic theories are achieved. By taxonomy & synthesis technique, the existent methods are integrated from information view after the patition of four schools: Key problem, Value, Society and Strategy; by inductive & deductive method, Balance Theory, Casual Theory, Strategic Measure Theory, System Theory, Alignment Theory are applied to PM. These cognition and theories create the condition for new PM establishment. Based on the above analysis, the PM is established by IV management. It involved three main parts, i.e. the quantitative PM model of IV, PM model of IV quality, and performance control & reward, which answer the above three questions each other.Next, the quantitative PM model of IV is defined and demostrated. Net asset, the growth rate of net asset, ROI, cost of capital, long-term investment and currency capital are confirmed as the driver factors of IV. These factors are established and validated by deducing of IV function, analyzing with correlation contrast of 825 public companies and multi-variables linear regression of 209 value growers, and confirmed by the test of 825 companies' statistical forecasting and stochastic 100 companies' measure result. These factors provide guidance of metrics design, external comparison, value target setting, and strategic route choosing according to the relationship between them and IV.Then, strategic PM model of IV quality is created and verified. The author spreads this part round strategy management process, presents strategic performance areas to simplify strategy establishment, analyzes strategy map to implement strategy, and develops basic measure unit to quantify metrics, link employees' realizable ability in everyday business and conquer the shortcomings of metric deposing and improving. Basic measure units, decided by strategic performance areas and value drives, create the model of strategic PM, and evaluate the IV ability and quality. By application, from the level of whole enterprise, departments, managers and groups, certain software company is full measured and managed with modularized information, and effectiveness of the model is also validated.Finally, No.4 financial statement - performance forecast statement is designed torealize optimal control effect. As a control level, it gives the constitutes, effectiveness, efficiency, stability and ability of process, overcomes the lack of forecasting information in financial statement and meets the performance requirement of exterior stakeholders and performance improvement of interior employee with concise information. Furthermore, performance pay equation is given to realize reward.Thus, the whole PM system based on IV is completely designed, and new points, concepts and methods are contributed to the theory and practice of PM.