Research On Improving Performance Evaluation System Of EVA By Using BSC

The steel industry is the pillar industry of our national economy and plays an important r ole in the process of economic construction in the new era.Since the 18th CPC Congress,the CPC Central Committee,with Comrade Xi Jinping at its core,has placed more emphasis on t he revitalization of the real economy.The 19th CPC Congress report further states that China’s"real economic development level needs to be improved" and that "the focus of economic de velopment must be on the real economy".As a solid foundation in the real economy,the perfo rmance evaluation of steel enterprises is not scientific enough,too much attention is paid to th e short-term economic benefits reflected by financial indicators,and the long-term value creat ion and environmental benefits are ignored.This kind of performance evaluation can not adapt to the needs of enterprise development under the new normal,The introduction of more scient ific performance evaluation is urgent for steel enterprises.Since January 1,2010,all state-owned enterprises have officially implemented the newly revised Interim Measures for the Assessment of the Performance of Heads of Central Enterpr ises(hereinafter referred to as the "Measures for the Assessment"),introducing the assessment of economic added value(EVA).However,EVA is more reasonable than the traditional metho d,but there are still some limitations which tend to reveal the financial motivation and the diff iculty of capital cost rate and so on.Therefore,enterprises need to perfect the evaluation syste m to make it more scientific while using economic added value as performance evaluation ind ex.The introduction of the balanced scorecard(BSC)makes the improved performance evalu ation system not only pay attention to the financial orientation,but also clearly demonstrates t he non-financial factors such as manpower,customers,learning and growth,and effectively c ompensates the deficiency of the EVA performance evaluation system.Of course,to make ful 1 use of the advantages of the balanced scorecard to improve the performance evaluation syste m of state-owned steel industry,it is very important to formulate a targeted,applicable and co mprehensive balanced scorecard theoretical framework.Considering that the steel industry ha s the characteristics of high pollution and high energy consumption,this paper considers the e stablishment of EVA as the core,BSC performance evaluation framework,not only using EV A indicators in the financial guidance role,but also using non-financial indicators to improve the evaluation system,the enterprise strategy into concrete quantifiable indicators,In order to match the strategic goal accurately,a set of performance evaluation system covering the busin ess process of steel enterprises should be constructed,which provides guiding suggestions for the development of state-owned steel industry and helps the development of real economy.