Optimization On The Performance Management Of Baiyun Airport Based On Balanced Scorecard

As an important part of the transportation industry,the civil aviation plays an important role in the development of China’s society and economy.With the rapid development of the civil aviation,the airport,as the platform to ensure the operation of airlines and to maintain the continuously streams of people and goods,is also actively exploring a performance management system that can help to realize its strategy of sustainable development.Baiyun Airport established its first joint stock company in 2000.In the same year,it contributed to the success of the 2010 Guangzhou Asian Games by welcoming passengers from all around the world,without any accidents or customer complaints.The passenger throughput of Baiyun Airport had grown rapidly from 2004 to 2014.At the end of 2014,Baiyun Airport became the China’s number 2 and the world’s number 15 airport for passenger throughput,with passenger number totaling more than 50 million,and it became the China’s number 1 airport in terms of the growth rate of cargo throughput,with its cargo throughput almost reaching 1.5 million tons.Therefore,Baiyun Airport proposed a plan to become one of the first-class terminals in the world.However,in recent years,the operational data of Baiyun Airport shows that its ranking is down and its profits is declining,exposing the deficiencies and inadequacies of its performance management system.Based on the theories of performance management and Balanced Scorecard(BSC),this paper aims to examine and analyze the performance management system of Baiyun Airport,by literature research,case study and field survey.Firstly,based on the review and the summary of the related theories and research trends home and abroad,the paper presents the importance and applicability of applying the balanced scorecard to the management of the performance of Baiyun Airport.Then,a comprehensive analysis of the current situation of the performance management and its existing problems is carried out.The analysis shows that Baiyun Airport’s existing performance management system is incomplete,pointing out the system has vague and strategy-independent performance management targets,subjective appraisal methods,unscientific selection of assessors,and a non-systematic,incomplete and independent indicator system.In terms of the issues,the paper presents an approach to optimize the existing system based on the BSC.To be specific,in the first place,through SWOT analysis,the paper helps Baiyun Airport define its strategic objectives,form its own strategic map and identify the key factors for success.Then,from the perspective of the four dimensions of BSC,including financial,customer,internal business processes and learning and growth,the paper tries to redesign the performance management indicator system,and confirm the reasonable weight coefficient of the indicators and its related standard by two-level modeling method.At last,the paperputs forward some suggestions for the implementation of the new performance management system.Based on BSC,the paper optimizes the performance management system of Baiyun Airport,expecting the new performance management will be in line with the development strategy of Baiyun Airport and then further promote the performance management of the airport.At the same time,the study can also provide theoretical and practical reference to some other civil aviation enterprises on applying the BSC to performance management.