Research On Process-based BSC Performance Evaluation System Of H Finance Company

The finance company is a kind of special financial institutions in China withsignificant Chinese characteristics. After26years of continuous exploration anddevelopment, the finance company industry grows and plays an increasinglyimportant role in financial markets and the economic development of the country.H Finance Company was established in2011. In the development process of Hfinance company, many problems have gradually revealed in the area of performancemanagement, for example the out of line of performance management and strategy,the unclear of process and the inappropriate of indicators design. These problems areoften faced by many finance companies.According to current situation and the problems of H Finance Company, anappropriate measure of performance management must be discovered. Among manymeasures and instruments of performance management, the BSC is an effectiveperformance management tool which can connect performance and strategy and wasbeen widely used in the past20years. In order to use the unique advantages of thisperformance management measure and avoid the adverse effects of traditionalperformance management to process performance and promote the optimization andimprovement of the business process, while in the performance management, aprocess-based BSC performance evaluation system need to be established.The core of process-based BSC performance evaluation system is thearrangement and selection of enterprise key business processes and key processindicators and integration with BSC system. According to the nature of the business offinance companies, H Finance Company’s business processes can be analyzed inaccordance with the assets business, liabilities business and intermediary business,and then filter out one of the most critical business processes according to the standard of group capital efficiency and increase the group’s revenue. Eventually fivekey business processes are selected. Then, analyze these critical business processesand the relevant departments of each of the key business processes corresponding toH finance company department set.Then, the strategy map of H Finance Company should be drawn according to thedesign requirements of the BSC. In the next performance indicators design aspects,previously selected key process indicators are classified according to the fourperspectives of the BSC system. At the same time, the key process indicators shouldbe modified and adjusted according to the design requirements of each angle of theBSC. Also new indicators should be added and H Finance Company’s. BSC indicatorssystem is eventually formed.After the company level BSC indicators system is formed, the BSC should bedecomposed according to company BSC and the key process indicators. Eventuallycomplete BSC system formation of H-financial companies, and enhance employeeperformance and promote the company through regular review and assessment.This BSC performance evaluation system is based on detailed analysis of thecompany strategy, scientific and effective organizational structure and support andcoordination of the company. Finance company belongs to a class of relatively newindustry. There are relatively few studies of its performance management. Theperformance evaluation system that combines process management with BSC isinnovative. So, if this process-based BSC performance evaluation system can beadjusted based on the characteristics of the different financial companies to make itcoordinate with the finance company’s strategy, structure and business process, then itis helpful to the performance management promoting of the finance company.