Research On The Application Of Performance Management In Commercial Banks With KPI, BSC And ANP

Recently performance management is one of the most important academic and practical issues in both business and accounting research fields. The thesis involves in four chapters. The Chapter One is the introduction part, which focus on the research background and significance, content and methodology, conclusion and main innovations.Chapter Tow is the summarization of performance management. Started with the Chinese definition of"performance", we compare the English definition as well as the economic meanings of"performance". And we also introduce the concept of performance management and its development process.Chapter Three is the comparison and analysis of performance evaluation method. Key Performance Indicator (KPI), a tool to divide business strategic goal into the exercisable target, is the basis of the business performance management. The Balanced Scorecard (BSC) is to gradually transform the business strategic goal into all kinds of concrete interbalanced performance evaluation index system, and make the seasonal examination on the implementation of these indexes in order to set up the reliable executed basis for the achievement of business strategic goal. By this method, we can perceive the business performance from finance, customer, internal operation process, as well as study and development aspects, so as to impel the enterprises to consciously build the target system. In Analytical Network Process (ANP), the elements are formed in a network structure, both hierarchical structure and internal cycling mutual control structure, with internal dependence and feedback. ANP reflecting the inter-relationship of external objects is a more object and efficient decision-making method. To apply ANP method with BSC can solve the index weight problem better. So it is a more scientific and efficient performance management method to combine the ANP with KPI and BSC.Chapter Four is based on the practice of performance management with KPI, BSC and ANP. We take Bank of China for example. With entering WTO, domestic financial market in China is gradually globalizing. How to improve the international competitiveness and make living in fierce competition and better development become inevitable and desiderated issues. Only scientific and effective business management can improve the core competitive ability of commercial banks in China. And performance management is the core and strategic issue in business management. Based on the review of the development process and current system of performance management in BOC, we focus on the practice of the performance management with the application of KPI, BSC and ANP in Bank of China.