ENN Energy Strategic Performance Management Research

According to the?Report on the Development of China Private Enterprises?,"there are nine private company close down every minute on average;less than 10% of them can survive for more than 3 years.Furthermore;and even fewer private companies can get on the international ranking list".The reason for most enterprise failure is not lacking of good strategic planning,but lacking of effective tools of strategy implementation,which reveals poor-execution problem existing in the strategy implementation of enterprises.With the deepening of integration of China's economy and the world economy,enterprises are facing increasingly fierce business environment;thus,managers pay more attention on the strategic implementation management tools that ensure the enterprises' sustainable development.Therefore,the tools and methods of strategic performance management stand out.Various methods and tools of strategic performance management become more and more complicated,which makes managers confused about how to precise in the application.Facing the new situation and requirements,lots of enterprises,particularly those with some level of size constantly explore suitable tools of strategic performance management based on their own corporate culture,and also build a more scientific and effective strategic performance management system to implement it effectively.In this way,enterprise can improve the core competitiveness continuously and promote the healthy and sustainable development.This paper takes ENN Energy,a private enterprise engaged in the energy industry,as a subject to study the development process from an unknown one to a group corporation with more than 100 billion sales this year,and analyzes the outstanding performance management problems encountered in each development stage.Based on the management process of strategic development and strategic implementation of the disconnection,too much attention to short-term financial results and other issues,ENN Energy management method has evolved from the initial simple goal management to the strategy oriented management—Balanced Scorecard(BSC).Moreover,the company has continuously optimized it in the process,and introduced business leading model(BLM),economic value added(EVA),and even explored partnership system in new project acquiring.It avoids the shortcomings of traditional performance management methods,such as lagging evaluation,focusing on short-term interests and ignoring long-term development.In different development periods,ENN group improves its own strategic performance management to ensure the implementation of strategic planning based on corporate culture and management pain points.This paper attempts to take the evolution of strategic performance management from ENN Energy Company,especially the construction of strategic performance management system with BSC as an example,taking the mode of the combination of empirical research and theoretical analysis to study how to optimize traditional performance assessment and to build a suitable strategic performance management system through methods of the background introduction,problem solving,effectiveness evaluation,etc.This research attempts to provide an example and reference for the application of Balanced Scorecard in enterprises.