Based On EVA Integrated Scorecard Enterprise Operating Results Assessment Method Research

Relying on the improvement of core competitiveness, enterprises might survive inthe trend of international economic turmoil, which could be understood as theundergoing of knowledge-based economic era, the acceleration of globalization andenvironmental discontinuity.With the purpose of the development of enterprises core competitiveness, theself-evaluation should be taken into account accurately and thoroughly, that is, guidingthe consultancy of advance and perfection. The group of executives, rather thanstakeholders, by any extent, should practice the management, especially, after the caseof Enron, and the necessity of evaluation hence should be put to light.The concept of “Performance Evaluation”, recognized in1870s, has been widelyreviewed and discussed. Researchers and investigators, in a certain circumstance, hasbeen exploring the methodology with accuracy and effectiveness. Performanceevaluation undergoes the progress from the evaluation of cost performance, financialperformance to value performance with the Balanced Score Card (BSC) within thedevelopment of economics. Basically, the traditional performance evaluation systemhowever gains cons comparing to the EVA performance and BSC evaluation system,which have been broadly practiced on the implicit level.Nevertheless, EVA evaluation system, whose core concept could be recognized asthe capital cost from the stakeholders has to be eliminated in the profit, in thetraditional accounting of which the adjustment should be applied on the basis of thedifferent criteria of profit in the context of accounting and economics, obtainsnumerous flaws, which might lead to more attention upon the short-term profitabilitybecause of common drawbacks shared with the evaluation system concentrating onfinancial indicators.From a broader point of view, BSC system, combining the financial andnon-financial indicator, to a certain extent, pays more attention to the operational assessment and strategic development. Furthermore, it optimizes the产期decision-making, leading to the avoidance of myopic actions, although it is far fromflawless. As a result, BSC could be viewed, as valuable both on the theoretical andpractical level because of the outlook of influencing enterprises value, hardly as a wayof benchmarking.This dissertation gives an analytic-al comparison and contrast between EVA andBSC system upon various aspects, with issuing an implicit proposal of BSC systemintegrated with EVA, namely the improved system effectively reveals the strength andabstains the weakness, with the purpose of improving the accuracy, efficiency, andintegration of evaluation operational management and strategic actions. It, moreover,taking Company BE as an example, discusses the structure and reason of indicators inthe system, with the analysis of evaluation result, and explains the priority ofIntegrated Balanced Score Card System.