Financial management performance evaluation method of

Abstract: The enterprise performance evaluation studies have been very numerous, but the financial management of their performance evaluation studies seldom this end, the Balanced Scorecard (Bsc) and AHP (AHP) was established based on financial management performance evaluation framework. and to internal process performance as an example of the specific right to determine the design and evaluation process, but also a detailed analysis of corporate financial management performance evaluation of the implementation steps and procedures.

Keywords: financial management, performance evaluation, balanced scorecard, AHP
A Balanced Scorecard principles of design specifications

Currently, due to corporate functions for performance evaluation of Research results less, a direct result of evaluation methods and indicators for design ideas is empty. Compared with the traditional Balanced Scorecard is a more comprehensive performance evaluation of management ideas and methods, therefore, draw a balance scorecard principles and ideas of financial management performance indicators designed to help improve their scientific and rational.


1,1 The definition of the Balanced Scorecard
American professor Robert s Kaplan and rehabilitation programs, David P Norton, president proposed the Balanced Scorecard in 1990, followed by the theory of community and business are all very respected. The core idea of ​​the Balanced Scorecard is based on the corporate strategic planning, through the creation of the company's future drivers of good performance analysis and measurement, from a financial, customer, internal processes and learning and growth in four dimensions to measure and evaluate the enterprise's overall operating performance because it balanced strategic and tactical, long-term and short-term goals, financial and non-financial indicators, lagging and leading indicators, internal and external indicators and other aspects and thus named the Balanced Scorecard.

According to the evaluation of the Balanced Scorecard framework, since the final day of business is profit, which reflects the profit level of financial performance indicators is an important aspect of business, but customer satisfaction with products or services, you can consolidate and enhance the competitive advantages to ensure their long-term financial performance. internal processes of enterprises to provide products or services to customers in the process, its financial and customers in the enterprise goals often play a key role in learning and growing business whether the business can continue to reflect improve and create future value of the ability to achieve these three indicators as the basis can be seen, the Balanced Scorecard at the same time retaining the traditional financial indicators, the introduction of the customer, internal processes and learning and growth in three areas of evaluation by the logical relationship between the four dimensions, to find a comprehensive performance measurement framework and drive performance to achieve the scientific ideas.


1,2 corporate financial management assessment of the dimensions identified
Balanced Scorecard as a performance evaluation tool, it can also be used in corporate financial management performance evaluation into the work itself because of the financial sector itself is not profitable, but to serve the financial needs of other departments and enterprises as their responsibilities, so the performance of corporate financial management performance of the Balanced Scorecard of the basic model, the specific content is bound is different from the organizational level.

Financial sector management performance evaluation model should have four dimensions, namely: First, target dimensions in the target dimension. The financial sector managers need to answer two questions: Who are our clients? How do we for our clients to create value? The key issue is the determination of target, which is directly related to the degree of client satisfaction the development of indicators from the macro, financial sector, corporate clients and staff, but employees and shareholders because Multi-agency relationship exists between the specific effects of the financial management services to meet the extent to which shareholders are to consider, but all the financial management is directly linked to the unit or personnel are required to objects as a service, because only the specific customer satisfaction, to say that financial management in the performance of their duties. That is, members of various departments and business managers of the financial management of financial guarantees, service satisfaction determines the quality of financial management performance. Second financial dimension. Although it is not their own financial management as the goal is to maximize profit, but the market mechanism gradually improve conditions, high efficiency and low cost of the work to create value for enterprise development is also crucial, therefore, have consider their own financial management and effectiveness of capital consumption. Third, the internal process dimension. the financial management of internal processes is the dimension of the evaluation target indicators related to the dimension-driven, and enterprise-level financial indicators by drive different financial management need to establish internal control system and with a number of accounting, financial management related business processes, evaluate the effectiveness of financial management business processes for financial management is an important dimension of performance evaluation. four dimensions of learning and growth To learn the financial management and growth is whether to continue to improve and create future value of capacity, mainly reflected in the financial management tools of innovation, financial targeting accuracy, internal staff innovation and so on.

These are the applications designed for financial management, Balanced Scorecard thought the four main dimensions of performance evaluation of course, the Balanced Scorecard not only have fixed four dimensions, all of the financial management performance evaluation plays an important role in the success or failure, and can create value for enterprises, can be reflected in the Balanced Scorecard.


2 internal performance evaluation process design example

Financial management through the Balanced Scorecard performance measurement dimensions and content analysis on how to evaluate an initial understanding of financial management performance below the financial management of the internal processes dimension, for example the design of the dimensions of the evaluation, and describe the AHP is more appropriate to determine the index weight approach of other dimensions and weight of indicators designed to identify internal processes can refer to the performance dimension.


2,1 an evaluation design
First, a clear type of business and financial management content, determine the specific type of process. General business financial management including budget processes are workflow, accounting procedures, loan reimbursement process, costing processes.

Then, in the framework of various types of processes, sub-specific aspects of each process, such as accounting procedures need to be subdivided into accounting documents fill in, delivery, auditing, accounting, recording, report preparation, filing, etc. These areas need to design appropriate evaluation criteria. in accordance with the same idea, you can design other types of detailed aspects of the business process and evaluation criteria. Links to free download http://www.hi138.com 2,2 detailed evaluation design
Work in determining the budget process, accounting procedures, loan reimbursement process, costing four level evaluation process, you need to design for each type of level indicator corresponding to two or three detailed indicators.

For the Budget process, budget process depends on company-owned units and departments is in compliance with the relevant duties and in strict accordance with business units to determine the zero-based budgeting requirements, organize the budget. It also should examine the budget process, all units and departments are budgeted for scientific and rational way, so you can work on the budget process is divided into three two-level indicators of specific indicators, respectively, financial management and other departments have organized strictly regulate the establishment of procedures, departments, units is denied and effectively carry out the relevant procedures in accordance with the requirements of zero-base budget carefully prepared proposals to amend the budget department or unit breakdown for details of their respective three indicators to distinguish between each two indicators in detail the contents should be included.

For the accounting process design two evaluation processes in accordance with the accounting aspects of the various components of the design, including accounting documents fill in, delivery, auditing, accounting, recording, report preparation, filing and other work of the evaluation index for three evaluation indicators should be two or more classification standards, such as accounting documents fill in the three elements of evaluation for the content is complete, fill in the contents of the program are norms or standards requirements.

Reimbursement for the loan approval process can be divided into loans, loan process control details of the two two indicators, while the cost for different processes according to specific business or industry to consider the design, because different types of business products and cost drivers, and there are ordinal place Big difference.


2,3-evaluation to determine the weight
Different evaluation indicators in the formation of the final evaluation of the results of the importance of not the same, this need to determine the index weight. By now, evaluation index weights way more, including AHP, fuzzy evaluation method, etc. Although different weights determine the methods are determined by expert scoring, but because of AHP can give different levels of the index weighting, therefore, more suitable for multiple-level evaluation index system of financial management performance evaluation.


3 implementation of financial management performance evaluation program

Thinking in the use of BSC to determine the evaluation and use of the AHP method to determine the weight of each index, you need a clear implementation of the performance evaluation of the implementation process. First, it should be a standard to determine the value of each indicator, and secondly, the financial management of unit-specific calculates a score value, once again, the score value and the specific units than the standard value for the index multiplied by the weight that is to be an indicator of the actual score value, and finally the value of all index scores plus the total value of evaluation results can be obtained .


3,1 to each performance evaluation to determine the standard value
Standard values ​​are often our experience, such as the financial sector to other sectors of financial protection and services provided by various departments and personnel to be recognized degree. How much satisfaction to be considered the standard, which requires experience to judge another example, financial management the proportion of staff at all levels of education, job rotation frequency should be how much is up to standard, which requires different times according to different units and reasonable judgments. That is, if the business units within the self-evaluation, the need for the performance evaluation target standard values ​​are given based on experience or industry average.


3,2 specific corporate finance department management and the relative value of the index scores to determine the value
In order for a specific corporate finance sector management performance evaluation, we need to give each unit for each index value can be considered with the industry to compare companies, need to use specific units of the actual financial management performance indicators value and standard value (can the industry average or median) for comparison, the relative score value and then multiplying the score value and the sum of the weights, you can get the value of the corresponding categories or dimensions. then the dimension degree index score is the sum of the financial management of a total score, so the industry can be a sort of financial management more.

Calculated after quantitative indicators, financial management should be combined with previously commonly used in qualitative analysis and evaluation of performance given the financial management assessment of the final results.


4 Conclusion

Corporate financial management is the normal operation of one of the important business, but a long time is difficult to assess financial management performance, resulting in financial management of their performance is not satisfactory. Traced the root cause, mainly due to the financial management systems, and financial services awareness low, low level of innovation in financial management, financial management activities, the concept of lead-free performance while the financial management of this design performance evaluation methods to help improve the situation, encourage enterprises to enhance management performance thus contributing to long-term development. to BSC based on the idea, introduced the design evaluation of the ideas to AHP method is based, describes the BSC thought under the guidance of design evaluation after weight how to identify and explain the financial management job performance evaluation of the implementation steps, of course this and not considered in detail the implementation of enterprise financial management performance evaluation of the implementation costs arising from and incidental costs. Thus, future Research should be improved for different methods and ideas to explore the feasibility and relative merits of improving the degree.


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