Study On Application Of Truth-inducing Budget-based Performance Evaluation Method In Projects Of E Company

With the rise of economic globalization,artificial intelligence,block chain and other technologies,the international competition in the development of Industrial Internet in the field of manufacturing is becoming increasingly fierce in recent years.Based on the current situation,Chinese government encourages and supports enterprises to take an active part in “going out” to carry out foreign contracting projects,alleviate the overcapacity of the domestic market and promote industrial upgrading by undertaking and implementing overseas projects.However,under the background of complicated and changeable international situation,contract projects are generally large-scale,with long construction cycle and faced with a variety of risks which may have a negative impact on implementation of strategic goal.Implementing the integration of enterprise management and control system oriented by budget management,helps to solidify and quantify enterprise strategic goal through budget management,and provides evaluation results of business performance.Evaluation results of business performance also reacts to the implementation and adjustment of the strategic goal of the enterprise.Combining budget management with strategic goal helps enterprise to get timely feedback and adjusts coping strategies,and ultimately enhance the level of strategic management.Based on real case of E company,a large state-owned EPC project contractor in China,this paper made a study on EPC project budget management combined with truth-inducing budget based performance evaluation method,and optimized the model,which may provide a reference for other state-owned EPC project contractors.