The Proposal Design Which Is Based On Strategetic Pay-for-performance By Human Branch Of China Pacific Life Insurance Company

How to implement the strategy effectively is the core work of operation andmanagement of business. From the perspective of compensation-incentive system, thispaper analyzed the internal logic among strategic management, performancemanagement and compensation management. By constructing a set of strategy-basedpay-for-performance proposal, Key Performance Indicator (KPI) which could drive thebusiness strategy come true and pay-for-performance could be associated directly, andconsequently, the implementation of business strategy could be promoted in the mostefficient and permanent way.This paper took Hunan Branch of China Pacific Life Insurance Company as theresearch object. By analyzing the current dilemma of strategy implementing, as well asthe problems existed in performance management and payment management, thispaper re-described the company's main strategies clearly by using a strategic map. Italso built up the matching strategic goal of different levels of finance, customer,internal process and learning and growth. Meanwhile, the measure gauge and targetvalues were established, and Balanced Score Card (BSC) of Hunan Branch wasconstructed as well. Besides, in order to further transform the strategic goal intoemployee's daily behavior, this paper set up a diverse KPI performance evaluationsystem according to different positions, and KPI, which can reflect the company'sstrategy best, would be connected to pay-for-performance directly. Therefore,employee's performance could be motivated by the pay-for-performance, and the targetof organizational performance could be realized by improving individualperformance.Under a mature consideration of some main factors, a couple of criticaland representative pay-for-performance proposals were designed in this paper. Thesefactors are as follows: KPI which is connected to pay-for-performance should embodythe company's strategy; different positions and their existing differences should beregarded; the difference between stock and incremental quantity, the differencebetween stages of development and marketing environment, the proportion ofpay-for-performance, payment cycle and so on should also be considered.With respectto the verification and implementation of pay-for-performance proposal, this papercarried out a logic analysis and part of them got confirmed based on objective reality.In this paper a set of strategy-based pay-for-performance proposal, which is highly exercisable and could be used for reference, of Hunan Branch is designed. Thisproposal will prompt the realization of strategic goal of Hunan Brunch effectively, andhelp the sustainable growth of company's value. Furthermore, the function of strategicmap and BSC in life insurance branches is verified, so as to provide a very importantreference value for the insurance industry, even other professions.