Business Management Performance Evaluation Model Innovation

Since the beginning of 20th century, Dupont Corporation apply the rate of return on investment in evaluating performance, performance evaluation has never again escaped from the viewpoint of theoretical researchers. Many performance evaluation methods successively appeared, such as Economic Value Added, Performance Pyramid, Balanced Score Card, Performance Three Prism etc. Among these methods, Economic Valued Added (abbreviation EVA) and Balanced Score Card (abbreviation BSC) are main ways since 1990. However, each method has its advantages, as well as its disadvantages. The thesis is based on an in-depth analysis of EVA and BSC on their advantages and disadvantages, overlapping parts and complementary. And then combining the two main methods, the thesis takes the good points of both methods and formulates a more scientific and effective pattern to evaluate performance. This patter embodies the essence of value creation, also the process of strategy implementation. The thesis includes five parts as follows:The first part is introduction, mainly including background of study, purpose, significance, present situation, research contents and methods of research.The second part is about theoretical analysis of combining EVA and BSC. First of all, related performance evaluation theories are introduced here, concerning contingency theory, system theory, management control theory, as well as the application of these theories in management performance evaluation. Next, the thesis introduces two typical methods in evaluating performance, including EVA and BSC. Lastly, the thesis analyzes the advantages and disadvantages of EVA and BSC, at the same time, making a deep analyze from two aspects, namely complementary and overlapping, aiming at why both of two can be integrated. The third part is a mechanism analyze on the combination of EVA and BSC, which is how to combine the two. Firstly, making business strategy surrounding the center of creating value. Then, regarding the analysis of value chain as a tool, decomposing valuation drive factors to realize the combination of EVA and BSC. Finally, establish a management control system guided by the concept of integration.The forth part introduces the performance evaluation pattern of combining EVA and BSC. What is it like after the integration of the two? First, give a description of pattern structure, including the index design from four points, such as financial dimension surrounding EVA, customer dimensions, internal business process dimensions and learning and growth dimensions. Then analyze the causality among various dimension indexes. Final, introduce a new management control system after integrating EVA and BSC.The fifth part is a performance evaluation case analysis on EVA and BSC integration. First introduce the enterprise's basic situation. Then introduce its performance evaluation pattern, as well as analyze its performance evaluation pattern. Last analyze the effectiveness of EVA and BSC integration.Conclusion is listed at the end of the thesis, pointing out the deficiency and innovation of the paper.