Research On EVA Performance Evaluation Of SH Electric Company

In the development of national economy,power enterprises are one of the basic pillar industries.The development of various industries depends on the supply of electricity,and the power system is an important industry in relation to the national economy and people’s livelihood.Being a big power company is not only a guarantee of social stability and economic security,but also closely related to the people’s living standards.However,with the reform of power system and the constant development of power enterprises,it is a big problem for power enterprises to evaluate enterprises’ performance objectively and impartially and to guide the power enterprises to develop toward higher and higher targets.In the process of domestic electric power enterprise system innovation,according to the sasac relevant specifications and requirements,various enterprises are put forward and a sound system of internal performance,according to the industry’s own characteristics,application and evaluation system.We will thoroughly implement the new development concept and stick to the relationship between the state capital investment company and its strong and excellent performance.By implementing based on economic value added(EVA)the value of management innovation,strengthen the concept of value creation,value creation ability,promoting the transformation and upgrading of enterprises and enhance the core competition ability,optimize the allocation of resources,improve the return on capital,lower the cost of capital rate,better realize the change of the pattern of economic development.This paper makes a overview of the research of EVA performance effect evaluation at home and abroad,takes SH power company as an example to study the evolution of EVA performance evaluation method of electric power enterprises in China,introduce the performance evaluation method based on EVA and point out the effectiveness of EVA on the performance evaluation of power enterprises.Based on the current situation of the development of power enterprises,this paper combines the problems existing in the application of EVA performance evaluation and puts forward corresponding solutions.By analyzing the EVA performance evaluation system of SH power company,this paper puts forward four existing problems:The concept of EVA performance evaluation was not fully implemented;The non-financial evaluation indexes are set single,and the indicators of enterprise customers,social benefits and internal processes are not evaluated.The performance appraisal fails to combine with the performance of each employee,and only involves the incentive to management;The evaluation of EVA performance has yet to be improved.Based on the existing problems,this paper puts forward the countermeasures of improving the performance evaluation system of SH electric company: strengthening the management concept of EVA performance evaluation;Integrate EVA index with relevant non-financial indicators;Release EVA evaluation results regularly to promote value management.