Performance Evaluation Analysis of Seabed's Financial Sharing Center Based on Five-Dimensional Balanced Scorecard
Guo Lele, master;
Du Yuxuan, master
Jilin Foreign Studies University (Changchun, China)
Balanced scorecard is a set of performance evaluation system and strategic management system that converts the strategic intent of an organization into specific objectives, measurement indicators and specific action plans. Therefore, enterprises cannot rely too much on the existing monolithic assessment and evaluation indexes, and it is imperative to optimize the current non-comprehensive traditional performance evaluation methods by setting a long-term development strategy appropriate to their development.
Keywords: Balanced Scorecard, Financial Sharing Center, Performance Evaluation
The Balanced Scorecard is undoubtedly the current to meet the long-term development of enterprise strategic management needs, it combines performance evaluation with corporate strategy, financial indicators and non-financial indicators, can be more comprehensive and reasonable performance evaluation, this paper selects the Seabed Liao Enterprise Group as the research object, according to the existing performance evaluation status of Seabed Liao Enterprise Group, choose the Balanced Scorecard method to evaluate the performance of each level, with the enterprise The gradual emphasis on socially responsible behaviors such as public welfare is conducive to building a brand, establishing a positive image, winning consumers' trust, and achieving sustainability as well as green and virtuous development. Therefore, this paper proposes a fifth aspect — social responsibility — in the performance evaluation of financial sharing centers, and constructs a five-dimensional balanced scorecard.
In view of this, this paper adopts the method of case study and literature analysis, and takes the restaurant hot pot leader Seabed Rao Enterprise Group as a typical enterprise, and implements the balanced scorecard to construct a five-dimensional performance evaluation, according to the existing performance evaluation status of Seabed Rao Enterprise Group, choosing the five-dimensional balanced scorecard method to evaluate the performance of each level can identify the problems in the performance evaluation scheme, and deeply improve the professionalism of enterprise operation In this way, we hope to provide some reference for the repeated listing failure of restaurant enterprises.
Literature review and theoretical basis
Review of domestic and international literature
Martin (2015) pointed out that the key factors for building a financial shared service center in the context of cloud computing are change management, site selection decision, service level agreement, process management, organizational structure, and strategic planning. Johnson et al. (2014) explored the influence of timeline and perception strategy on BSC performance evaluation to further improve and strengthen the performance evaluation system. Vincent Bicudode Castro (2017) pointed out that there are subjective influencing factors and are multidimensional, to be clearly distinguished based on rules.
Rao Shuilin (2011) believes that the financial sharing model has optimized the operation process of enterprises and can give full play to the strategic advantages of large enterprises, which is an innovation of the enterprise management model. Wu Hao (2017) believes that the financial sharing model is an inevitable trend in the development of finance, and the formation of the financial sharing model means that the Internet has achieved a more comprehensive application in the operation process of enterprises.
Strategic management theory
Early theories of strategic business management paid much attention to the discussion and analysis between competition and competitive advantage, but as companies step into a new development environment, a whole new trend of strategic business management has emerged from the perspective of survival and healthy development.
(1) Customer value center theory
Traditional business competition considers customer creation to be essentially a zero-sum game, which is extremely dangerous. In the customer value-based business competition theory, companies need to cultivate pioneering industries and actively build long-term development strategies around customer value. However, in this customer-oriented type of strategy development, it is more of a conservative, defensive type of strategy, and in order to enable the company to take a leading position in the future development, it needs to form a proactive development posture, and not only focus its strategy on customer needs [3].
(2) Business Ecosystem Theory
At this stage in the market economy, Darwin's doctrine of natural selection is that only the most rational development model and the best companies can survive in the market [4]. Companies need to evolve and develop together, and business activities need to develop and progress in a comprehensive manner. Companies need to use competition to connect different contributors so that they can develop an innovative business model.
Theory related to balanced scorecard
Reflecting financial results
The life cycle of an enterprise can be divided into three stages: growth, maintenance and maturity, and the financial indicators vary slightly depending on the stage of the enterprise. In the first stage, a company must invest a lot of human, material and financial resources in production expansion, marketing and promotion to develop markets, increase market share and expand sales revenue. In the second stage, enterprises can make a good profit by maintaining the existing market share. The third stage is to maximize net cash flow.
Reflecting customer aspects
Marketing concept that companies should be committed to customer service, customer satisfaction, find ways to meet customer needs, to provide customers with products and services to their satisfaction. Generally speaking, customers are not neat and tidy, due to their different preferences, customers have different requirements for product price, quality, performance, brand, after-sales service, etc. Enterprises should conduct in-depth market research to reveal different customer groups, refine customers, and confirm their target customer base based on this analysis. After identifying the target customers, enterprises should meet the needs of the target customers as much as possible in order to retain the original customers and attract new customers, so as to increase the market share and gain higher profits from them.
Reflecting internal business processes
The Balanced Scorecard measures the internal business process is a comprehensive measure of the production and operation status of the enterprise, and the internal business objectives and evaluation indicators are set based on the principle of meeting the needs of customers, in which the internal business process for quality measures the pass rate and rework rate, controlling the pass rate helps the enterprise to improve product quality and avoid quality disputes, and controlling the rework rate helps to improve the skillfulness of its products in one pass. After-sales service quality indicators are used to measure the proportion of one-time cost of after-sales service, whose cost includes the cost of human and material resources in the process of after-sales service.
Reflecting learning and growth
Learning and growth means that the company invests in employee training so as to improve skills and increase learning ability and enrich expertise. Employee competency is a critical aspect of the learning and growth dimension of the Balanced Scorecard, both for management staff and for sales and other sales staff; at the same time, accurate and timely communication about customers and internal operations.
Theories related to corporate social responsibility
Corporate social responsibility refers to the fact that while enterprises obtain revenue and create economic profits, they should also protect the interests of individuals or groups related to them, such as by protecting the rights and interests of consumers, attaching importance to social contributions, paying taxes and taxes according to the law, and other actions to assume social responsibility to various stakeholders such as investors, creditors, employees, suppliers, customers, and governments [6]. Corporate social responsibility has two aspects: on the one hand, economic organizations have the role of promoting economic development in the overall social development; on the other hand, in the development process, economic organizations should also play the role of serving society and cultivating human values.
Corporate social responsibility adds an ethical element, so it is an important prerequisite for its development to pursue both shareholders' interests and more than shareholders' interests, to achieve a balance between the two, and to seek a long-term partnership.
Case description
Background information of the case company
Founded in 1994, Haidilao is a hot pot restaurant brand. On September 26, 2018, Haidilao was successfully listed on the Hong Kong Stock Exchange, developing its business with restaurants, takeaway, and sales of condiments and ingredients as its main business. According to Haidilao's 2021 annual report, the operating income from Haidilao restaurants is its main source of income, with the amount of operating income rising from 27433.7 million in 2020 to 39,463.7 million in 2021, an increase of 43.9 %; revenue from takeaway business was 705.7 million in 2021, accounting for 1.7 %; revenue from sales of condiments and ingredients was 687.06 million in 2021, accounting for 1.7 %.
The number of branches and subsidiaries under Haidilao International Holdings Co., Ltd. is large, and each store exists as a branch and is located all over the world. Each store has set up financial positions, and the number of financial personnel and the level of business vary greatly, making it difficult to unify management and control the income and expenditure of funds and business quality. In order to meet the background of the company's increasing number of branches year by year, Haidilao International Holdings Limited started to establish Haidilao Finance Sharing Center in 2012.
Organizational Structure of Haidilao's Financial Sharing Center
The total number of people in Haidilao Finance Sharing Center is 103, including 21 in the voucher group, 6 in the revenue group, 28 in the expense group, 17 in the payable group, 19 in the payment group, and 12 in the general ledger group, of which: the revenue group is responsible for fund nesting, bill management, unified clearing, and strengthening the control of funds; the expense group includes expense audit, execution evaluation, and document management; the payable group is responsible for bank reconciliation, audit of current bills, analysis of causes of outstanding accounts, and risk tracking; and the general ledger group is responsible for voucher audit, monthly account closing, and report compliance. The Accounts Payable Group is responsible for bank reconciliation, review of current bills, analysis of reasons for outstanding accounts and risk tracking, and the General Ledger Group is responsible for voucher review, monthly closing of accounts, and report compliance.
Business Processes of Haidilao's Financial Sharing Center
Enterprises should combine the concept of business and financial integration to reduce costs and increase efficiency and enhance control, thus setting up a financial sharing center with business value chain value-added as the key to strengthen its synergistic ability. Firstly, financial personnel centralize the financial accounting of all subsidiaries or branches as well as integrate data information, and secondly, for financial procedures, the accounting language achieves a high degree of unification to promote value-added and efficiency of financial work. The specific process is shown in Fig. 1 Personal expense reimbursement flow chart.
Fig. 1. Flow chart of personal expense reimbursement
According to Fig. 1, business department personnel need to fill out expense reimbursement forms in the system and mail them and the original bills to the financial sharing center; at the same time, after the employees submit their personal expense reimbursements, their leaders will review the authenticity of the business. After the relevant person in charge of the financial sharing center receives the courier, the physical bills are scanned into the system. Secondly, after the business leader approves and uploads the physical bills to the system successfully by scanning them, the accountant can review the documents according to the uploaded information to see if the accounting accounts are accurate and the electronic invoices are compliant. Then, after the accounting audit is approved, the expense voucher will be automatically generated in the system, the payment accountant will send the instruction, and the fund accountant will make the payment. Finally, the archivist will file the physical bills after successful payment.
Staffing of Haidilao's Financial Sharing Center
With the gradual maturity of the operation and management of the financial sharing center, its business will also gradually cover more high-end financial modules such as group forecasting, operation analysis and risk management, and the financial sharing center will be upgraded to the information and data processing center of the enterprise, therefore, the professional ability of talents is especially important in this construction.
Fig. 2. Education of employees in Haidilao Finance Sharing Center
According to Fig. 2, it is clear that undergraduate, graduate and other education account for 65 %, 11 % and 24 % of the total number of employees in Seabed's financial sharing center, with undergraduate students accounting for the largest proportion and graduate students accounting for the least.
Current Performance Evaluation System of Seabed's Financial Sharing Center
The current Seabed Finance Sharing Center largely follows the performance evaluation method of the Key Performance Indicators assessment system, which is mainly reflected in the following aspects: whether the bill audit, account processing, tax accrual and payment, filling out the payment details and adjusting the differences in previous periods are timely and accurate, whether there are complaints from other departments, and whether the communication and teamwork ability are excellent. At the end of each month, the above indicators are scored (total score of 100) and an assessment report is formed, whose performance assessment results reflect the operational effectiveness.
Performance evaluation indicators
The personal performance of Haidilao Finance Sharing Center is examined on a monthly basis in four dimensions: basic work, execution, comprehensive ability, and customer service. The basic work dimension includes attendance status and daily work error rate, among which: attendance status refers to the strict verification of leave, and unauthorized absence from work is treated as absenteeism; daily work error rate refers to whether there are any accounting errors, which intuitively reflects the work effect of the employees. The execution dimension mainly includes work completion and business processing proficiency, among which: work completion reflects whether the employees have completed their work tasks within the specified time; business processing proficiency reflects the employees' mastery of the work, which is measured comprehensively according to the time spent by the employees to complete each business. Comprehensive ability mainly includes business interpersonal communication and teamwork ability, which reflects the staff's ability to convey the tasks assigned by the supervisors and the collaboration between the various departments. The customer service dimension reflects both the work of the staff and shows whether the staff's service attitude is poor, whether the interface with customers is smooth and how satisfied the customers are.
The above assessment indexes adopt the scoring system (ten-point system), the higher the score means that the project is completed to a higher degree, and vice versa, the lower the score means that the project is completed to a lower degree and finally the score will be summarized and the reward and punishment measures will be implemented according to the score, so as to improve the enthusiasm of the staff.
Performance results feedback
Employee salary = grade salary * performance coefficient, where: grade salary is divided into 8 different grade salary standards according to their ability, mastery of business difficulty, etc.; performance coefficient is determined by scoring according to the performance evaluation form.
Table 1
Breakdown of the actual salary payment of the employee for the month
|
Assessment score range |
Individual Performance Factor |
Employee's actual salary payment for the month |
|
100 points — 96 points |
100 % |
Payroll payable*100 % |
|
95 points — 86 points |
95 % |
Payroll payable*95 % |
|
85 points — 81 points |
90 % |
Salary payable*90 % |
|
80 points and below |
80 % |
Salary payable*80 % |
Case Study
Problems of the current performance evaluation system of Seabed's financial sharing center
Performance evaluation methods are lagging behind
For Haidilao's original system, there is only the financial management department, but after the financial sharing center is online, its performance evaluation still follows the traditional evaluation method, which is obviously not suitable for the development of the application of this model in the enterprise.
Firstly, each department had different work content and difficulty, but adopted the same performance evaluation index, which led to a more one-sided performance evaluation. Secondly, after the financial sharing center was built, the accounts processing of the Haidilao Group was concentrated in the financial sharing center, which made the tasks of all departments in the Haidilao financial sharing center heavier. At the same time, the performance appraisal still focuses on whether the basic work is correct and timely, but does not make a comprehensive consideration for employees. Finally, because the information construction of the financial sharing center is not perfect, there are system errors in its platform, but the objective factors are ignored in the performance appraisal.
Excessive number of indicators
In a balanced scorecard performance rating system, companies typically choose one quarterly review. The results of the appraisal are placed in the salary indicators that the company uses to reward employees. However, in such an evaluation model, there is often a problem that the indicators are under-represented in the payroll. The reason is that the company's efficiency comes from the construction of a reasonable workforce by replenishing new talent, adjusting the structure of the workforce from the root, and reserving follow-on talent.
Financial staff management issues
(1) Professional Weakness
Under the streamlined working mode of financial shared services, the work content of finance personnel is mostly mechanical and repetitive with fixed processing, which requires less professional ability for highly skilled finance personnel, thus weakening financial accountants to improve their professional skills in practice.
(2) Negative performance incentives
The performance evaluation adopted by Haidilao Financial Sharing Center is an after-the-fact evaluation, which not only focuses on the results of the performance evaluation, but also tends to be more formalized, thus neglecting to trace the causes of the results and improvement measures, which also makes the performance evaluation results lose their rationality and objectivity. In this way, it is impossible to realize the cultivation of employees' personal ability, and it is also impossible to produce positive motivation for employees by deducting performance.
Principles for constructing the indicator system
Alignment of strategic goals
As a management tool, the balanced scorecard is oriented to the strategic objectives, refining the strategic objectives of the enterprise to each department's cloth and then to each position's objectives and finally to each employee himself, closely integrating the strategic objectives of the enterprise with each position, so that each employee can correctly recognize that his own objectives are consistent with the strategic objectives of the enterprise.
The corporate strategy of Haidilao is to be a leader in the restaurant industry, and the goal of the Haidilao Finance Sharing Center is to provide financial data and information for the enterprise to achieve this goal.
Evaluation indicators can be quantified
If the restaurant industry does not solve the problem of irregularities in the measurement process, the performance assessment indexes constructed cannot be quantified, then the performance indexes constructed in the restaurant industry are not feasible. However, Haidilao has made a series of operational processes, i.e., from procurement link — store operation link — service link, measurable and enterprise operation data, which will not only increase the fair and transparent credibility of enterprise operation, but also improve the enthusiasm of workers' work This will not only increase the credibility of fair and transparent business operation, but also improve the enthusiasm of workers, and thus greatly improve the service quality. Therefore, the evaluation and assessment should choose quantifiable indicators.
Specific indicators are practical and feasible
Referring to the actual situation of each position in the financial sharing center of Seabed, the personnel of each position are responsible for different areas, and their difficulties and requirements are different. Therefore, specific assessment indicators are set from different perspectives, and the specific assessment indicators should be scientific and reasonable, practical and feasible, and set up corresponding incentives, rewards and punishments mechanisms.
Haidilao Financial Sharing Center Construction Strategy Map
Based on the premise of the balanced scorecard, a strategy map is created to optimize the process of progressive decomposition of strategy in order to better present the correlation between the various data indicators of the balanced scorecard, so that all employees of the company can grasp the future economic development path of the company in a timely manner and clarify where their work falls within the scope.
Table 2
Financial dimension performance evaluation indicators
|
Strategic Objectives |
Evaluation Indicators |
Calculation method |
|
Revenue from main business |
Sales revenue growth rate |
(Sales this month — last month)/last month |
|
Profitability |
Sales Margin |
Total profit/operating revenue*100 % |
|
Asset Utilization |
Inventory turnover rate |
Cost of main operations/average inventory balance |
|
Cost structure |
Cost Margin |
Total profit / Total cost |
|
Debt service level |
Gearing ratio |
Total liabilities/total assets*100 % |
Table 3
Customer dimensional performance evaluation indicators
|
Strategic Objectives |
Evaluation Indicators |
Calculation method |
|
Regular Customers |
Repeat customer retention rate |
(Current customer — previous period)/previous period |
|
New Customers |
New Customer Growth Rate |
New customers for the month / Number of customers for the month |
|
Market share |
Market share |
Total sales for the period/peer sales |
Table 4
Internal business process dimension performance evaluation indicators
|
Strategic Objectives |
Evaluation Indicators |
Calculation method |
|
High quality, stable and timely service |
Speed of developing new dishes |
Proportion of stores with new technology application = proportion of stores with new technology application/total number of stores*100 % |
|
High quality, stable and timely service |
Number of customer complaints |
|
|
High quality, stable and timely service |
Number of exit menus |
|
|
High quality, stable and timely service |
Number of timeouts for serving food |
Table 5
Learning and Growth Dimension Performance Evaluation Indicators
|
Strategic Objectives |
Evaluation Indicators |
Calculation method |
|
Build an efficient, high-standard, united and enterprising work team |
Employee Training Rate |
Number of qualified employees/total number of employees |
|
Employee Retention Rate |
Number of resignations/total number of employees |
|
|
Employee satisfaction level |
1 — Employee complaint rate |
|
|
Corporate Culture Awareness |
Voucher Survey |
Table 6
Social responsibility dimension performance evaluation indicators
|
Strategic Objectives |
Evaluation Indicators |
Calculation method |
|
Ethical Responsibility |
Safeguarding the legal rights and interests of employees |
Social Security Withdrawal Amount / Total Employee Salary |
|
Ethical Responsibility |
Asset tax rate |
Amount of tax paid by enterprises/total assets of enterprises |
|
Social Responsibility |
Internship Employment Rate |
Number of transfers / Total number of interns |
|
Social Responsibility |
Public welfare investment rate |
Public welfare investment/operating income |
Construction of performance evaluation safeguards
Timely adjustment and improvement of enterprise performance evaluation system
If Haidilao International Holdings Limited, a leader in the restaurant industry, is to gain a competitive advantage in the current highly adventurous market, it is necessary to actively study the business philosophy of Western countries and continuously adjust the performance assessment of management forms and governance structures.
Support of information management platform
Enterprises need the support of information management platforms, such as financial reimbursement systems, human resources systems, management report data platforms, etc. With the support of these platforms, enterprises can do a good job in the daily business activities of file records and information organization, especially the need for data should have a certain degree of accuracy, this party can promote the smooth implementation of various processes of the enterprise, but also for the relevant departments This can promote the smooth implementation of the balanced scorecard and optimize the evaluation and assessment mechanism of the restaurant company to a certain extent.
Incentive mechanisms such as remuneration
Generally speaking, the compensation incentive for operators is fixed salary because there is no risk, but can give the greatest psychological protection to employees; the appropriate combination of bonus incentive, pension plan helps to motivate the compensation structure of operators, Seabed International Holdings Limited according to its own situation to carry out the optimal incentive measures combining short-term compensation incentive and long-term compensation incentive.
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