it is learned on nov. 25 that the classic cases of national power enterprise management innovation achievements in recent five years reviewed by china electricity council will be published soon. the performance management promoting implementation of international first class strategies in new energy enterprises applied by china longyuan power won the first prize of national power enterprise management innovation achievements standing out from the 113 candidate achievements of national power system applied in 2014, and selected in the classic cases of national power enterprise modern management innovation in recent five years officially compiled and published by china power enterprise management magazine.
the classic cases of national power enterprise modern management innovation in recent five years comprehensively and systematically summarizes the achievements of modern management innovation in power industry in recent five years, deeply digs the characteristic methods of management improvement, and refines excellent and classic cases. the cases are recommended by each enterprise and reviewed by management experts in each field of china electricity council.
china longyuan power is the power enterprise engaging in new energy development the earliest in china. at present, the wind power installed capacity ranks the first in china and asia and the second in the world. in recent years, the new energy industry develops rapidly, and capacity is seriously excessive, and homogeneous competition becomes fiercer. in 2013, china longyuan power proposed the strategic objective of the third venture and creating internationally first-class new energy listed company. the exploration and innovation of first-class management method becomes the important link to realize its objective. innovating performance management and strengthening incentive restriction mechanism are confirmed as the core basis to serve strategic transformation, promote strategic implementation and improve management level.
the performance management system of china longyuan power can be summarized into “one subject, four supports, vertical to bottom and horizontal to edge”. the system realizes long-term and real-time incentive and general and key incentive integration, works around strategic transformation, takes the strategic objective of “creating internationally first-class new energy listed company” as assessment orientation, applies tools such as “strategic map” to settle and de-structure the strategy to establish consistent strategic elements constitution and performance kpi base; then combine the key points of operating plan and budget plan to select and form key indexes of current performance evaluation, break down and implement to each department of headquarters and each subsidiary; form the entire-process closed loop performance management mechanism of “goal decomposition, dynamic tracking, assessment & evaluation, communication & feedback and result application”, guide each management activity to carry out based on the strategic objective, and guarantee the implementation of company strategy by continuously improving and ceaselessly promoting organizational performance.
the performance management innovation of china longyuan power has three characteristics: the first is to highlight process control, establish new concept of fronted assessment, and transfer the former emphasis on afterward award and punishment to encouragement of process control strengthening and regular supervision and feedback, i.e. assessment and implementation are carried out simultaneously to guarantee the “horizontal to edge” assessment without dead end. while stimulate and mobilize the enthusiasm of basic unit to pursue development, the system emphasizes that the head office is not only the impeller of company strategy who is in charge of supervision, management, support and service, but also the specific implementer of company strategy who shall realize the performance goal in corresponding functional field and promote the head office function transformation and effective performance. thirdly, the system integrates benchmarking management concept into performance management, insists on the method of “objective assessment + benchmarking assessment”, and not only implements development requirements of company but also lead to pay attention to the industrial development level and catch up with and surpass the advanced enterprises. through benchmarking assessment, china longyuan power has deeply dug own advantage, found out gap, continuously improved and ceaselessly promoted the business performance level. meanwhile, the system helps normalize assessment, and further promote the justice and objectiveness of assessment.
china longyuan power carried out the performance management innovation in the company for over one year. the concept and behaviors of performance management changed essentially, and the improvement of business performance is realized. in 2013, the company fully finished existing strategic objective, and achieved favorable results in each performance index. in that year, the share price of the company rose 86% annually, ranking the first for hscei constituent stock. it won the third chinese securities “golden bauhinia” award, and won the 2013 china enterprise innovative team award of china enterprise evaluation association.