Enterprise business performance evaluation is a value judgment made on the enterprise's production and operation activities using specific indicators and standards and scientific methods in order to achieve the enterprise's production purposes.

Performance evaluation serves the operation and management of the enterprise, plays a guiding role in the operation of the enterprise, is directly related to the formation and maintenance of the core competitiveness of the enterprise, and affects the survival and development of the enterprise.

As the wheel of history enters the 21st century, the production structure and labor structure of the entire social economy have undergone profound changes. The traditional business management model is facing challenges. Therefore, the business performance evaluation methods should also undergo corresponding changes.

1. Traditional business performance evaluation—financial evaluation indicators have limitations. The traditional enterprise performance evaluation system only includes financial evaluation indicators and does not include non-financial evaluation indicators.

Financial evaluation indicators mainly refer to accounting income indicators, such as net profit and return on investment. Although they have been widely used by many companies for a long time in the past, as the goal of companies has developed from profit maximization to shareholder wealth maximization, financial

Sexual evaluation indicators reveal many limitations in practice.

Mainly manifested in the following aspects: 1. Under generally accepted accounting principles (GAAP), the calculation of accounting income does not consider the cost of all capital. It only explains the cost of debt capital, but ignores the compensation for the cost of equity capital.

As we all know, under modern economic conditions, the capital source of an enterprise generally consists of two parts: debt capital and equity capital. As an important capital factor, the cost of equity capital also has opportunity costs.

Therefore, failure to recognize and measure the cost of equity capital essentially inflates profits, which may mislead investors into making wrong decisions.

2. Under accrual accounting, due to the selectivity of accounting methods and the considerable flexibility in the preparation of financial statements, there is a certain degree of distortion in accounting income, which often cannot accurately reflect the operating performance of the company.

Determining an operator's actual job performance and compensation is likely to be inappropriate.

For example, although the return on investment (ROI) links the net profits obtained by a company with the assets it uses, the accounting estimates used, especially the depreciation and inventory valuation methods, will affect the company's profits and the net assets it uses, which in turn will affect

ROI, therefore, also has many drawbacks.

3. Financial evaluation indicators are insufficient to reflect the intangible effects that enable future growth or make it difficult to achieve future corporate growth.

That is to say, the impact of many activities that are beneficial or detrimental to the company's value creation cannot be included in net profits because they do not comply with the accounting prudence principle, such as the successful development of a new product, or the loss of major profits.

Although operating and management personnel may have a significant impact on current and future net profits, they are not immediately reflected.

4. Accounting income is a "short-sighted indicator", and an increase in profits does not necessarily lead to a simultaneous increase in cash flow.

A one-sided emphasis on profits can easily lead to short-term behavior by operators in pursuit of short-term benefits at the expense of long-term interests of the company. It may encourage corporate management authorities to seek quick success and short-term speculative behavior, making corporate operators unwilling to make capital investments that may lower current profit targets.

Investing to pursue long-term strategic goals may lead to corporate management authorities not paying attention to technology development, product development, and talent development, which is not conducive to the long-term healthy development of the company, thus deviating from the company's basic goal of maximizing shareholder wealth.

5. Due to the impact of price changes, the traditional performance evaluation method based on historical cost will mix amounts of different currency values ??together.

Although in theory some new financial indicators, such as cash flow, can be used to adjust traditional accounting information to predict the company's future cash flow, in practice, problems of objectivity and reliability are encountered.

2. Characteristics of modern enterprise operating performance evaluation - on the basis of traditional financial indicators, evaluating enterprise operating performance combined with non-financial indicators. In recent years, strategic management theory has made people realize that it is insufficient to only use financial indicators to evaluate company performance. In comparison

Lower non-financial indicators can better encourage enterprises to improve management.

Therefore, a complete enterprise performance evaluation system should be an organic combination of financial evaluation indicators and non-financial evaluation indicators.

Judging from the current theories and practices at home and abroad, a complete enterprise performance evaluation system should include the following non-financial evaluation indicators: 1. Market share.

Market share reflects the company's operating performance in marketing.

In a highly competitive market environment, an enterprise's market share plays a particularly important role for the enterprise.

Actual surveys show that market share ranks first among many non-financial evaluation indicators.

2. Product quality.

Product quality refers to the quality level of the product.

Product quality is reflected in two aspects: on the one hand, it refers to the quality of the product that meets the company's manufacturing standards in the production stage; on the other hand, it refers to the quality of the product that meets the customer's usage requirements in the after-sales stage.

It can be comprehensively reflected through the two measurement indicators of scrap rate and customer return rate.

3. Employee motivation.

In the era of knowledge economy, human resources play a core role in the business management activities of enterprises.