Abstract: Its system engineering to promoting the core competitiveness of colleges, and the performance appraisal as one of the most effective means of scientific management system is valid. This paper summarized means of performance appraisal, analyzed the method of Key Performance Indicator (KPI) in detail. Moreover, the key issues to structuring performance appraisal index system of departments were studied, and a KPI system was newly developed for disciplinary development, nurturance, scientific research, teacher development, international communication, and its design idea, architecture and procedure were described in derail.