Research On Optimization Of M Company’s Key Performance Indicator System

In the current increasingly competitive market,the key for an enterprise to gain competitive advantage and to realize its long-term development lies in improving the performance of its organization and employees,and fully exploring the potential and efficiency of its employees.And all these are based on scientific performance evaluation indicator system.In recent years,due to the weakness of macro-economy,the large overdraft of real estate,the increased volume of automobiles,and the city’s restrictions on licensing and traffic,China’s automobile market has been relatively sluggish,and automobile sales in China have entered a low-speed growth or even decline situation.According to data released by China Automobile Association,the national automobile sales volume in 2018 was 28.0806 million,down 2.76% year on year.In 2019,the sales volume was 25.769 million,down 8.2%year on year.Limited market space leads to further intensified competition,which forces enterprises to continuously improve product quality,reduce product prices and provide differentiated products.Therefore,enterprises must improve performance management to enhance internal strength and enhance competitiveness.The scientific performance indicator system is the basis of performance management,so enterprises must first establish a scientific performance evaluation indicator system.This paper studies a series of problems existing in the performance indicator system of M company,an auto parts enterprise,such as it ignores the cultivation of long-term competitiveness,it cannot accurately identify and effectively distinguish organizational and individual performance,the indicators are too comprehensive or even repetitive,the indicators are not within personal control.Improper performance indicator system makes the company’s performance management fall into the situation of low efficiency,even formalism,which hinders the company’s business development.Based on the problems existing in the performance indicator system,this paper deeply analyzes and finds out a series of reasons for these problems,such as the lack of understanding and communication of the performance indicator system among managers at all levels;the unclear responsibilities of the company’sposts;the lack of proper methods in constructing the performance indicators and so on.After the diagnosis,before M company optimized its KPI system,enough preparations are made first,such as providing key performance indicator system training for personnel at all levels of the company,analyzing and clarifying post responsibilities.Then using the balanced scorecard,from the mission and vision of the company,the company level key performance indicators are constructed.Then the company level KPIs are divided into department level KPIs by the method of combining department responsibilities and process methods.Combined with the post responsibilities,the department level indicators are decomposed to posts.Finally,scientific methods are used to determine the form,evaluation criteria and weight of key performance indicators.This paper starts from the reality of M company,and optimizes its indicators as well as the forms,evaluation standards and weights of various indicators.First,a set of scientific key performance indicator system is formed,which lays the foundation of effective performance management.Secondly,under the guidance of a set of scientific KPI system,the organizational performance and personal performance of M company have been greatly improved,and various processes and basic management have also been improved.Finally,the detailed optimization plan and specific key performance indicators also provide reliable reference support for other companies in the same industry,which has a certain practical reference value.