Research On KPI-driven Performance Management Of QDWMT Biochemical Disposal Factory

Recently garbage disposal industry has become one of the key metrics to measure the successful operation and development of a city. There has been a rapid development of the sanitation infrastructure in this city. QDWMT is one of the key players in this industry, and has brought critical contribution to the life garbage disposal of this city. Along with the further enhancement of our economic reform, the government has raised a new request to initiate the PPP financing operation model in the operation of public infrastructure and public services including sanitation. This new operation model is a great development opportunity for QDWMT, at the same time it is also a big challenge. As a state-owned enterprise managed locally by the city, it has its strengths in terms of human resource structures and support from the government, but it needs to further deepen its enterprise reform, enhance its internal management, better utilize modern and advanced management tools and resources, set up more practical performance management system, save cost, streamline operation processes, in order to improve the performance of the company as well as each and every one of the employees. Only by that QDWMT can maintain the sustainability in future development, cope with the future economic reform, and stay strategically competitive in the future management and operation.This dissertation reviews the world top-class performance management concepts and best practices, collects and analyzes the existing performance management system of QDWMT and its subsidiary companies Biochemical Disposal Factory, identifies problems within the current system, and finds out the root causes of these problems. Generally the operation of existing system can no longer support the current and future growth of this company in the modern world. The company needs a more logical, suitable, and scientific performance management system. This dissertation is crated based on the fundamental performance management concepts, as well as the thinking approach of balanced score card (BSC). Through effective use of surveys, it proposes a more practical performance management solution for the target company QDWMT including the following 3 steps:(1)Firstly QDWMT company strategy was reviewed and analyzed, in the aspects of finance, customers, internal business processes, and learning & development, by using the 4-dimention model from BSC. The results of the analysis come to the creation of the company’s key performance indicators (KPI), all the way to the specified performance indicators of each position.(2)After the restructure of the company’s organization chart, a new KPI-based performance management system is set up in QDWMT. The setup process includes:job descriptions of the key positions in QDWMT are created, key performance indicators of these job descriptions as well as all the departments’working processes are standardized, refined and upgrades based on SMART principle; and job descriptions of key positions are improved by standardizing the indicators of quantity, quality, time, etc, by applying the principle of behaviorally anchored rating scale(BARS).(3)Planning and preparation for implementing the new performance management system is completed by effective communication, building up complaint procedure, delivering relevant training, piloting with a smaller group, constant tracking, and feedback & evaluation.The feasibility study, initial design and pilot of the new KPI-based performance management system of are completed through the above steps. In the future management of QDWMT and Biochemical Disposal Factory, performance management is expected to be executed with other human resources systems and processes including compensation & benefits, training & development, employee career planning, to best utilize this new system and bring the most benefit to the company, so that it can contribute to the overall improvement of the company’s human resources management and scientific enterprise management. At the same time the results of this new implementation are expected be good reference and support to the building of scientific, logical and practical performance management system in QDWMT and other sanitation enterprises in this city.