The Research Of XZ Company’s Performance Evaluation System Based On The Balanced Scorecard

Numerous small and medium size enterprises(SME) have become a pillar of China’s economic growth as well as the enhancement the country’s comprehensive strength, as China has been committed to the undertaking of the reform and opening up. Nevertheless, this SME by virtue of financial indicator can not make objective and rational appraisal on their performance due to such limitations as size, funding and information technology. Failure to assessment renders them difficult to improve their performance, and adjust to the development of market. While balanced score card has an advantage of giving a relative comprehensive appraisal from lenses of finance, clients, internal business procedures and learning and growth, achieving the organism combination of business strategy with business performance. It serves as a new performance appraisal system. It is therefore imperative to develop such system based on balanced score card.Taking the XZ company as the case study, it is pointed out in the paper the necessity and feasibility of the new appraisal system through the analysis of the status question of the XZ company. Then the appraisal system was established by selecting suitable indicators and giving them weight on the basis of the company strategy. Finally solutions to the problems were offered by appraising the business performance of the company using the constructed new appraisal system. It follows that the introduction of this system to and its application on the SME can make a closer combination of its strategy with business performance, which is of very help to objective appraisal of SME business performance and promotes its long-term development.