Research On Improving The Performance Of BL Company By BSC

Performance evaluation is science, but also art. How to carry out the performance evaluation scientifically and reasonably is a question that needs to be taken seriously and actively explored. With the continuous development of economy and the improvement of the economic system, the owner of the enterprise needs to establish the performance evaluation system, which is the core of value management. The management ideas and business philosophy of the enterprise are also changing. Driven by the macroeconomic environment, BL company has been transforming their performance evaluation method from profit maximization to value addition of shareholders’ value.The purpose of this paper is to try to explore a more scientific and more objective performance evaluation system, in order to truly reflect the operating performance of BL company. Considering the performance of application of EVA as the main evaluation index, the paper applies the qualitative analysis and case analysis in order to find out the existing problems of the practice and the reasons behind. Using EVA as the main evaluation index may result in manipulation and bias. Through literature review, the paper introduces the basic theory of performance evaluation system, and analyzes the economic value added (EVA) and balanced scorecard (BSC), and analyzes the shortcomings of BL company’s existing performance evaluation system, which is more suitable for BL company’s balanced scorecard performance evaluation system, which is based on EVA as the main indicators of financial indicators and customers, internal operations, learning and creation, etc..The article concludes that adding the Balanced Scorecard concept into BL company’s existing performance evaluation system can make up the limitations of EVA, as well as avoid the BL company to pursue the EVA value of as the only the financial adjustment means meanwhile, it will help investors to understand of the company’s operating conditions more objectively and directly. At the same time, it also can allow the enterprise to mobilize both internal and external resources accessible to the enterprise in the formulation of long-term development strategy, Setting EVA as the ultimate goal, the company can use the most direct and effective strategy in business decision-making, in order to avoid waste of capital resources and time resources.