Building Of Enterprise Performance Evaluation System Based On Value Creation

An effective performance evaluation system is not only an important mean of self-supervision and self-discipline,but also an important strategic management tool for enterprise.Business environment has changed dramatically since human society entered into the information age.Accordingly,more and more enterprises began to focus on rising the value maximization to the overall management thought of the business.The business objective has gradually shifted from profit to maximization value creation and value adding.Accounting to this change,it is necessary for enterprises to readjust their own performance evaluation system.On the basis of absorbing the achievements of foreign performance evaluation systems and analyzing the situation in China,this paper tries to research how to build an enterprise performance evaluation system in the perspective of value creation.The author hopes that this paper could have great effect on accelerating the development of enterprise performance evaluation system.This paper consists of five chapters.The first chapter describes the research background and structure of this paper.The second chapter presents some relevant theories of the enterprise performance evaluation to lay the theoretical basis for the flowing analysis.The author chooses the enterprise value maximization as the financial target.The third chapter reviews the development stages of the performance evaluation systems at home and abroad.Especially,the author investigates the advantages and disadvantages of some influential performance evaluation systems to get some enlightenment.The fourth chapter builds an enterprise performance evaluation system based on value creation.First,we make strategic analysis so as to find out the opportunities to crate value.Then we dig out the source of value creation through analyzing the value drivers.With the help of KPI index,we can impose responsibilities on specific position and individual.In addition,the analysis of the value drivers is the core content of building the enterprise performance evaluation system.In the analysis of the financial value drivers,the author suggests using Economic Value Added as the core financial indicator,while taking cash flow index and other index as a supplement.In the analysis of the non-financial value drivers,the author proposes to make the most use of the key stakeholders.Finally,we need to set up an early-warning mechanism for dynamic monitoring.The last Chapter discusses possible obstacles in the implementation of the enterprise performance evaluation system.To handle these problem properly,the author concludes four principles through case studies,which are effective communication,rational process planning,comprehensive support system and motivation mechanism linked to the enterprise performance evaluation system.