Discussion On The VBM-Based Enterprise Performance Evaluation Index System

With the development of economic globalization and continuous improvement of the modern financial system, with the desire to succeed in the fierce market competition, more and more enterprises in professional circles begin to pay much more attention to a new management idea and management model with the aim of creating value and adding value--Value-based management model(VBM). Meanwhile, with the value maximization rising to the overall management thought of the business, VBM is also paid attention to by academic circles. In order to achieve the maximization of shareholders value, we must manage the process of value creation through VBM. This requires the value to be measured scientifically and analyzed its drivers, but the performance evaluation index system which is the important point of financial management doesn’t aim at the value maximization and couldn’t analyze the value drivers. The traditional performance evaluation index system obviously can’t meet this requirement, so with the new management idea and management model, choosing the proper index and creating a new performance evaluation index system have the theoretical and practical meaning.The purpose of this paper is to create a new performance evaluation index system which could meet new demands, analyze the value drivers, serve the internal operation and motivate the value creation. This paper first describes some relevant theories of performance evaluation and VBM to lay the theoretical basis for the following analysis. Then the paper reviews the development stages of the performance evaluation index systems of our country, and points out the shortcomings of the traditional performance evaluation index system. In this case, the introduction of VBM performance evaluation system will need. After the introduction of VBM, the performance evaluation index system will be improved both in targets and indicators, the core objective of target will be value creation, and also the system will reflect the characteristics of value creation in the performance evaluation process. For the improving of indicators, MVA will be the core value of metrics, and introduces the non-financial index. In construction of VBM-based performance evaluation index system, the first step is initially decomposing the core index MVA to mean financial index, then combine the du State financial system of principle to decompose the mean financial index to subordinated financial index. Then according to the value driver analysis we will find the value drivers, in this paper we select the customer, internal business processes, employees, social responsibility of the four non-financial to analyze the value drivers. At last, we will use the progressive analysis method to integrate the financial and non-financial indexes, and give different weights to the different indexes. At the end of the paper, we apply the performance evaluation index system to actual cases, making study on theoretical results to be more valuable.This paper covered the following six parts:The first part describes the research background and significance, then reviews the related literature and describes the structure and research methods of this paper.The second part presents some relevant theories of the performance and VBM to lay the theoretical basis for the following analysis.The third part reviews the development stages of the performance evaluation index systems of our country, and points out the shortcomings of the traditional performance evaluation index system.The fourth part is after the introduction of VBM, the performance evaluation index system will be improved both in targets and indicators.The fifth part is the construction of VBM-based performance evaluation index system. It’s the focus of papers. With MVA as the core values index, introduction of non-financial indexes, we use progressive analysis method to integrate financial and non-financial indexes to construct a VBM-based enterprise performance evaluation index system.The sixth part, we apply the performance evaluation index system to an actual case.