The reform deduces that if the state owned firms only focus on the interest conflicts of the acts of the principals and the agents,it doesn't include all the problems of the state owned firms currently,and the firm profit also depends on the principal efficiency.The paper concludes that: first,only when the firms solve the incompatible and noncoherence problem,they can get the best efficiency if there are multi-principal goals in the firms; Secondly,the best selection of managers is on the no market goal of getting promotion or exiting which leads to the low efficiency of state owned firms.The paper deduces that: the state owned firm is not equal to the low efficiency,and that the reform of the state owned firm focuses on both the agents and principals.All these reforms can completely solve the governance problem of the state owned firm.