Application of Factor Analysis in Assessment of Performance Excellence

In order to meet organizations' needs of continuously pursuing excellence and implementing perfor- mance excellence management,and to provide solution to the dilemma of wholly mastering organizations' per- formance without rapid increase of indicators' number in the performance excellence evaluating process,this paper tries to use factor analysis to reduce the number of indicators with minimum information loss,and real- ize indicators independence the same time,preventing effectiveness loss related with indicators correlation. The paper provides the theory basis and concrete methods for top managers to build new indicator system in the process of implementing performance excellence management.