The Establishment Of Performance Measurement System For SD Company

Having right strategies and the right executives to rightly implement those strategies can be radically decisive factors to destiny of any company. Performance measurement system, as a part of strategic management, which demonstrates manager's principals on decision-making in terms of vision, mission, goal, value and operation, and leads to both managerial and operational stuffs to take any action necessary to achieve corporate goals. Measurement on finance performance was the only aspect of traditional performance measurement system, could no longer keep up with new demands on strategic management under new economic environment. Hence, it is increasingly demanding to the establishment of a comprehensive performance measurement system which is compliant with external environment and can perfectly combine corporate strategy and tactics.Traditional performance measurement system could no longer keep up with new demands in new economic environment. The economic world is marked with information technology development and globalization. Competition is furious and battle field becomes boarder. Customs-oriented has been the leading tendency for all companies, more than that, market niche, capital, technology, management, employee capacity and creativity are sustainable competitive edges leading company to success. In the age of knowledge economy, intangible assets are more sustainable rather than industrial economy, which emphasize on long term tangible asset. Hence, measurement on financial performance is not enough.This dissertation aims to propose an enhanced Balanced Score Card whose core is the EVA. Based on a case study of a state-owned company SD, it starts with the introduction of SD's operation situations and external threats, indicates the drawbacks of current performance measurement system though analysis, a deep study in accordance with SD's characters to come up with the enhanced BSC. It provides a framework for organizing strategic objectives into the four perspectives with 21 measurement metrics. In the learning and growth perspective, training and education help to improve employee capabilities and skills, deeper understanding of corporate climate needed to support a strategy. Enhancement of employee skills leads to achieve operational excellence by improving and internal processes motivating innovation and cost savings. Companies that pursue a strategy of operational excellence need to excel at competitive pricing, product quality, product selection, lead time, and on-time delivery. The effectiveness brings about expanding and deepening relationships with existing customers. The financial performance benefits from improvements of customer relationship and eventually increases corporate value for shareholders. BSC intends to overcome difficulties encountered with disconnection of business strategy and various driving forces, emphasizes on value-added and comprehensively balances financial and non-financial measurements.In addition, this dissertation suggests that in order to rationally make use of the new system, companies need to consummate fundamental management, strategic management, and information system management and employee motivation mechanism.