Index System Of Business Performance Evaluation Based On Strategies

Business performance evaluation is an evaluation to the process and result of the production. For long time, the business evaluation lays particular emphasis on the result, on the finance index, and on the metered index, but scarcely on the evaluation of the process, on the non-finance index as well as to the metered index. And, the divorce of performance evaluation and the business strategy does harm to the establishment and implement of business strategy. The emergence of EVA improves the performance evaluation based on the finance index, but it still belongs to the finance index evaluation method. The emergence of balanced scorecard has the epoch-making significance, it evaluates business performance with these four levels as: finance level, customer's level, business process level, study and improvement level, taking both finance index and non-finance index, the metered index and nature index, result index and process index into consideration. More important is, it combines with business strategy, which contributes to the business strategy management. However, some problems arise when using the balanced scorecard in our country.Business performance evaluation experiences several decades of development in the our country, from real object to the production value to the profits , 《 Evaluation of the State-owned Capital》 promulgates in 1999 with more detailed, scientific, and manageable regulations. 2002 revises the 1999 evaluation system , promulgates 《 Detailed Regulations to BusinessPerformance Evaluation (revised) 》.It evaluates the business performance fromthe finance performance condition, property condition, repaid debt ability and development ability. Although this index system contains many advantages, it also exposes some problems, and the key point is, it does not relate to the business strategy, which does no good to the establishment and implements of business strategy.Index system of business performance evaluation based on strategies considers four levels including: the finance level evaluation index, employee level evaluation index, customer level evaluation index and the business process level evaluation index. The finance level evaluation index evaluates the accrual ability of business (particularly the accrual ability of the human resource advantage) and cash discharge, capitals protecting the value and increasing in value, the speed of capital turnovers and finance security index; The employee level evaluation index considers the employees' creative ability, knowledge level, communicating ability, training and stability etc. Customer level index considers the retention of the market share, customer satisfactory, maintaining old customer and acquiring new customer. Business process level evaluation index considers the value chain, devotion and repay in the research development, the product quantity and the after-sales service, equipments intact etc. These four levels of index evaluate business performance from finance and non- finance, the metered and nature index, result and process, and combine itself with business strategy.