企业绩效管理外文文献翻译译文.docx

1、企业绩效管理外文文献翻译译文外 文 文 献 翻 译 译 文一、外文原文Abstr actC or por a te Per for mance M a nagementTwo of the most important duties of a chief executive officer are (1) to formulate strategy and (2) to manage his companys performance. In this article we examine the second of these tasks and discuss how corporate p

2、erformance should be modeled and managed. We begin by considering the environment in which a company operates, which includes, besides outside stakeholders, the industry it belongs and the market it supplies, and then proceed to explain how the functioning of a company can be understood by an examin

3、ation of its business, operational and performance management models. Next we describe the structure recommended by the authors for a corporate planning, control and evaluation system, the most important part of a corporate performance management system. The core component of the planning system is

4、the corporate performance evaluation model, the structure of which ismapped into the planning systems database, simulation models and budgeting tools structures, and also used to shape information contained in the systems products, besides being the nucleus of the language used by the systems agents

5、 to talk about corporate performance. The ontology of planning, the guiding principles of corporate planning and the history of ”M ADE”, the corporate performance management system discussed in this article, are reviewed next, before we proceed to discuss in detail the structural components of the c

6、orporate planning and control system introduced before. We conclude the article by listing the main steps which should be followed when implementing a performance planning, control and evaluation system for a company.1. Intr oductionTwo of the most important corporate tasks for which a chief executi

7、ve officer is primarily responsible are (1) to formulate strategy and (2) to manage the company s performance. In this article we examine the second of these tasks and discuss howcorporate performance should be modeled and managed.To perform is to accomplish, to achieve (desired) results or outcomes

8、. So, when talking about corporate performance, we are referring to the degree by which desired results or outcomes are achieved by a company. Managing corporate performance involves planning, controlling, analyzing and evaluating, not only the results achieved by the company, but also the means by

9、which these results are reached. Among the results, or goals, pursued by most companies we can mention growth, market share, profitability and value creation; and the means to achieve these results include productivity, effectiveness, innovation and competitiveness. Those are the type of things we s

10、hould have in mind when specifying a corporate performance management system.Before discussing how to model corporate performance, it is convenient to consider the environment in which a company operates, which includes, besides outside stakeholders, the industry it belongs and the market it supplie

11、s. The main aspects of an industry to be looked at when considering its influence on corporate performance are structure and regulation, the main competitors, entry barriers, substitute products and suppliers negotiating power. Associated questions are: How production is organized, vertically or hor

12、izontally? How much competitive is the industry and who are the main competitors, those that capture the largest part of the market share? Is it unregulated, self-regulated or regulated by a government agency? How strong are barriers to the entry of new competitors? Can products from other industrie

13、s function as substitutes for the ones produced in the industry? What about the power industry suppliers have when negotiating prices and trade conditions?At the opposite side of the industry in the corporate environment we have the market where the company trades its products, its main attributes b

14、eing size, growth rate, segmentation, exit barriers and consumersnegotiating power. Typical questions that should be asked when assessing its effect on corporate performance are: What is the market size, in dollars, for each of the companys products? What are the short-term and long-term market grow

15、th rates? Is it a wholesale or a retail market? Are the sales cyclical? How can the market be segmented (by geography, purchasingpower, customer age, etc.)? Which barriers does a client run into when changing suppliers? Do clients have the power to impose prices and trade conditions?We call the peop

16、le who have interest in or are affected by a companys performance its “stakeholders”, and group them in the categories of “insiders”and “outsiders”. The insiders are the companys entrepreneurs or controlling shareholders and its managers and employees. The outsiders include customers, suppliers, min

17、ority shareholders, debt holders, the government in its roles of public goods supplier, regulator and tax collector, and also the communities where the company does business. It is important to note that stakeholders, besides being affected by, also influence corporate performance and it is often ne

18、cessary to search for the effects of this influence when appraising performance.That is meant to increase the depth of this brief analysis of corporate structure and external relations.Microeconomic theory considers the company as a social production unit that uses a certain technology to produce a

19、set of outputs from a set of inputs. The function that maps input quantities into maximum output quantities obtainable from the inputs is called the “production function”or “production frontier”. Knowledge of this function is important for measuring the technical efficiency of a production unit, a v

20、ery significant performance metric. Several techniques exist forthe specification of production functions or frontiers, grouped under the names of “Data Envelopment Analysis”and “S tochastic Frontier Analysis”.Companies are created by entrepreneurs, the agents that organize and coordinate production

21、 with the help of professional managers. Entrepreneurs play a crucial role in shaping corporate performance. On one side, recognized entrepreneurial capacityand also large contact networks are vital for raising the financial capital necessary to build structural or physical capital. On another side,

22、 the entrepreneursreputation and contacts are essential to attract the intellectual capital that, together with the structural capital, is the foundation of innovation capacity .A business model is a conceptual representation of the way a company does business. Its main components, are: the companys

23、 value proposition; the targeted market segments; the distribution, marketing communications, and customerrelationship channels; the core competencies needed; operating and management technologies; the partnersnetw ork; and the revenue, cost and value creation models. Understanding the business mode

24、l is the first step to implement a corporate performance management system. The model should indicate whether the company has a broad customer base or targets specific market segments, and in the second case, identify these segments. The goods and services provided by the company and the commercial

25、conditions under which they are sold (including such things as guarantees, technical assistance, etc.), comprise the value proposition. The channel used for product distribution can be a direct-tocustomer sales channel through the Internet, or be comprised of bricks and mortar companyowned stores, w

26、holesale agents, retail companies, etc. The company can use several marketing channels to get messages through to its customers, such as TV and printed media, and employ a call center to give support and receive complaints and suggestions from them. Core competencies are the ones the company needs t

27、o master in order to gain a competitive advantage in relation to other companies in the same marketplace. These competencies should rest on proper operational and management technologies, and be supplemented by a network of partners, if necessary. As a final point, a business model must include a re

28、venue, a cost and a value creation model in order to be profitable to the companys shareholders.We can think of the operational model of a company as encompassing an organizational model, a functional model and a corporate data model . The organizational model depicts, in an inverted hierarchical tr

29、ee, the roles of the agents involved in the companys operation. The functional model portrays all the activities that together form the whole to which we refer by the expression “companys operations”, structured in logical, sequential steps forming operational processes. At last, the corporate data

30、model is an entity-relationship diagram that shows the main entities about which the company collects data with its attributes and the relationships between them.The last model we need to examine in order to understand the functioning of a corporation is the performance management model it uses, whi

31、ch is, in general,composed of four building blocks. The corporate governance system, the corporate performance planning, control and evaluation system, the individual managers performance planning, control and evaluation system and the management variable compensation system (or bonus system). The c

32、orporate governance system comprises three well known actors, the chief executive officer, the directors and the shareholders, and is designed to mediate the relations between them. Under the governance system, we find two planning and control systems, having as its targets the performance of the co

33、mpany (as a whole and of its divisions) and the performance of its individual managers, respectively. Linking these two systems we find a compensation system that assigns fractions of a bonus pool, which is a function of the aggregate company performance, to its managers on the basis of their individual pe