The Discussion On Enterprise Performance Management Problems Under Financial Shared Service Mode

As globalization is more and more common, "smooth earth" brings resource allocation and flowing in whole world, more and more multinational corporations emerges. Meanwhile, with the Laws of Sarbanes-Oxley coming into effect, capital market has a much higher requirement for the standardization, accuracy and openness of the financial affairs information, high-efficient cross-border financial management and capital operation becomes a key problem. However, level checking patterns are adopted by current China enterprise. Under this pattern, checking points are scattering and the chain is long. It is difficult for rules and policies of financial affairs to be exerted effectively and for the standard and process of accounts checking to reach high unity. The quality of accounting information is running risks. Incongruous information between upper levels and lower levels leads to the delay, distortion and incompleteness of information in corporation. This will affect the policy-making of corporation managers and run the risk of losing control of management. At the same time, different levels of accounts checking staff result in the different data statistics. In addition, financial affairs staff put much effort on daily work, therefore they have a limited ability to affairs supporting and checking supporting and they can not adjust themselves to the analysis demand for the rapid-changing market. It can be seen that with much fiercer competition, financial affairs management is becoming the core of corporation management, financial services, human resource services and other services, which where neglected for a long time, are playing more significant roles in company operation today. Due to improve the pattern of financial affair management, foreign multinational companies integrate financial services together to achieve the standardization, centralization and routinization. Meanwhile the competition mechanism is introduced into the company operation, in order to reduce the cost, create the value and improve the qualities of services. As a result, Financial Shared Services appears. Nowadays, it has been widely used and proved to be highly effective in multinational companies. So, only through improving the pattern of financial affair management, can China enterprise guarantee the realization of managing goal, increase the profits and raise the service quality. Even though,80 percent of top-500 enterprises in the world have shared financial affairs. However, in our country, the theory of financial shared service mode is in the stage of starting and discovery. Therefore, the practical operating case of the enterprise under this mode is a few. And after enterprises introduce this new mode, a series of problems which need to be solved because of the organizational structure changed a lot, particularly the performance management problems under this mode. Because performance management is an important measure, it can improve enterprise operation, and ensure the realization of enterprise strategic goals; if the performance management of the enterprise is not effective, it will affect the operational efficiency and hinder the financial shared service mode play the best role in enterprise. So, analysis and solution of the performance management problems have become the chief prerequisite of the normal use in financial shared service mode.This paper mainly used standardized methods, supplemented by experience reference and summary method. By discovering, analyzing and solving problems of general ideas, firstly, analyze and seek for the problems and deep reasons of our enterprise performance management under financial shared service mode through the review of financial shared service mode and enterprise performance management theory. Then, the paper elaborate requirements and conditions of foreign Citibank performance management under Financial Shared Service mode, at the same time, we learn their ways and means of performance management, which summarizes the ways and means of increasing performance management under financial shared service mode, which comes to inspirations of achieving effective performance management in our country under this mode. Lastly, in the aspect of background, key element, organization, target, personnel, technological process, performance indicator system construction, system support, etc. the author illustrates the important section and content when enterprise strength the performance management measures in the process of pushing financial sharing. While the major feature of this paper is the discussion on overall enterprise performance management problems, including the group, each business unit and financial shared service center, because the current research and application of financial shared service mode is new to China market, and the study of performance management problems related to financial shared service center is only an exploratory discussion, there is little research and solution on performance management problems of the whole enterprise group in practical operation. Hence, the author hopes to provide constructive comments for the ineffective performance management of enterprises and multi-national companies under financial shared service mode in our country.The article has 5 chapters.ChapterⅠ:Mainly illustrate the relevant concepts, content and theoretical framework of financial shared service and enterprise performance management. Then, make the comparison of enterprise traditional performance management.ChapterⅡ:In view of the importance of performance management and the performance management problem exist in enterprise under financial shared service mode in our country, combining with the practical requirement in construction of performance management system under this mode, diagnose the current situation of performance management,analyze the problem, such as there are not clear target in performance management under financial shared service mode; Unfitted performance management indicator system under present FSS mode; performance appraisal measures are lag behind; The information integration of the performance management under financial shared serviced is low. Then, analyze the reason according to these problems.ChapterⅢ:According to the performance management experience of Citibank under financial shared service mode, analyze the practical example of Citibank in performance management under financial shared service mode, so as to give a revelation to performance management under financial shared service mode in our country.ChapterⅣ:Ⅲustrate strengthening the our enterprise performance management measure in financial shared service mode, these measures include, changing the idea of financial shared service, making a clear target of performance management, constructing scientific performance management appraisal indicator system; Improve the basic work of performance management under FSS mode; adopting the business intelligence information system; improving the information integration of performance management appraisal, etc. So as to promote the long-term healthy development of financial shared services.ChapterⅤ:This part is the conclusion of the whole paper and the prospect of financial shared service mode applied in our country.