The Design And Application Research Of Key Performance Indicators Based On Strategy

Key Performance Indicators (KPI) is a kind of strategy -oriented and advanced performance appraising method that is increasingly taken into account by more and more business managers. By analysing indicators system from the top to the bottom , KPI is proven to be effective to transform and embody the business strategy into measurable indicators, with the characteristics of strategy-oriented, aspects related, keystones focused, and phases measured. The application of KPI will benefit to appraising a corporation's performance and competitive force, furthermore, it will contribute greatly to enhance the staff's comprehension to corporation's vision or mission, and to make a correct decision and form strategic competitive advantages.This thesis begins with analyzing problems in existing traditional performance appraising methods, and introduces the definition of KPI Performance managerial system. It expounds the procedures and sequences of the application of a corporation's KPI system, that is, above all, an ingelligible strategy should be established; secondly, sub-objects should be analysed and raised; thirdly, a series of layered KPI should be come into being from the top to the bottom. The thesis also summarizes the design processes and methods of KPI system, and discusses the different ways in accordance with organizational framework or work streamline, provided they are both based on strategy. And then, It creatively concludes an effective method—"focus on the cross", and demonstrates some applied cases.