Performance Measurement

Huawei, a telecommunication equipment provider has consolidated its advantaged position in Telecom Networks, and continued to create value for customer and fulfilled customer needs through its products and solutions. Even with soft economy condition in 2010, Huawei still manage to achieve sales revenue of “CNY 185.2 billion, a year-on-year increase of 24.2%.”1 Besides contribution from its customer-centric approach and dedicated employee, the major achievements actually come from continuous improvement for the respective performance target. According to Hellqvist, (2011), an effective performance management (PM) required a parent’s strategy objective which can reflect in the performance target through measuring the achievement of each target. Since Huawei is a Chinese global company, to establish a performance management to measure each performance target in different location is a difficult decision and complex process as the expectation for its target should applicable and standardize for local and worldwide. (Evans et al., 2002). In particular, the aspect of performance target included Broad Strategic Measure, Functional Strategic Measure, Composite Performance Measures, Generic Operations Performance Measures and Detail Performance Measures (Slack and Lewis, 2008).

Huawei believe operation performance measurement should broader its measurement scope from external to internal, long-term as well as short-term and “soft” as well as “hard” measure (Slack and Lewis, 2008). Implicitly, a more complex aggregation of performance target model is needed to perform a more detail and organized performance measurement. Significant effort has been established to develop criterion for each performance target which is a core assessment area for Detailed Performance Measures. The measurement for each performance target is interrelated with five generic performance objectives which included quality, speed, cost, dependability and flexibility (Slack and Lewis, 2008). In