Combination Of EVA And BSC Performance Evaluation System Research On Company A

With the ongoing changes of social environment and the growing development of enterprises, the imperfect performance evaluation system leaves serious influence on and even limits the growth of enterprises. At present, many enterprises still follow their traditional method of performance evaluation with financial index in spite of lots of flaws and deficiencies in the management process. Therefore, it is quite necessary to establish a performance evaluation system suitable to the enterprise. Scientific integration of different evaluation methods to make up for the shortcomings and limitations among them can create more value for enterprises. Economic value added and balanced score card both are effective tools for measuring business value, different in evaluation methods but aiming at the ultimate goal of creating enterprise value. Thus, the combination of the above two could foster strengths and bypass weakness, giving free reign to their own advantages for greater effects.The combination of economic value added and balanced score card is an effective way to perfect the performance evaluation system on financial index, which can help measure the business more comprehensively.This dissertation chooses economic value added and balanced score card among the performance evaluation methods to analysis their strength and weakness and the feasibility and necessity of their combination, making them the as the theoretical basis of establishing the new performance evaluation system combined with economic value added and balanced score card. Then the author analyzes the status quo of performance evaluation system in A company and points out the deficiencies and defects, and then find the existing problems under such system and find out the cause of the problem. Furthermore, according to the basic principles of establishing performance evaluation system combined with economic value added and balanced score card as well as the practical situation of the A company, the author sets up the EVA-BSA performance evaluation index system, integrating the financial index into the the financial aspects of the balanced score card. Selecting indexes among the four aspects of finance, customer, internal process and study and growth, she then uses weight design with analytic hierarchy process (AHP) to redesign the scoring criteria of the selected index. Finally, based on the EVA-BSA performance evaluation index system of A Company, a preliminary analysis is reached and relevant safeguard measures are put forward against the possible obstacles during the implementation process.