Use a Balanced Scorecard to Evaluate Business Processes of Sichuan Electric Power Company

Abstract

Since the electric power industries throughout the world are undergoing enormous restructuring processes resulting in fiercer competitions than ever, it is necessary for electric power companies, especially Sichuan Electric Power Com- pany (SEPC) as an important part of South China Power Grid Company, to make suitable and feasible strategy for their development. The objective of this study is to construct an approach based on the analytic hierarchy process (AHP) and bal- anced scorecard (BSC) for evaluating SEPC performance, aiming at acting as a ref- erence to electric power industry. The BSC concept is applied to define the hierarchy with four major perspectives (i.e. financial, customer, internal business process, and learning and growth), and performance indicators are selected for each perspective. And then the AHP is used to determine the indicator weights. The results provide guidance to electric power company in the electric power industry in China regarding strategies for improving business process performance. Finally, some suggestions are given for improving the SEPC business processes.KeywordsBalanced scorecardAnalytic hierarchy processPerformance evaluationSichuan electric power companyElectric power industry