+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Financial Analytics: Science and Experience
 

Evaluation of the activities and key performance indicators of the economic entity

Vol. 9, Iss. 28, JULY 2016

PDF  Article PDF Version

Received: 21 June 2016

Received in revised form: 30 June 2016

Accepted: 11 July 2016

Available online: 29 July 2016

Subject Heading: ASSESSMENT AND APPRAISAL ACTIVITIES

JEL Classification: M21

Pages: 21-35

Bulgakova S.V. Voronezh State University, Voronezh, Russian Federation
svebulgakova@yandex.ru

Korotaeva N.V. OOO TransRegionMontazh, Voronezh, Russian Federation
n-link@mail.ru

Importance The article discusses the issues of adequate evaluation of the efficiency and effectiveness of the economic entity and its management differentiated segments. In the world practices, this problem gets solved through key performance indicators (KPIs), the application relevance of which in the activities of Russian economic actors has become apparent recently.
Objectives The paper's purposes are a comprehensive study of the KPI concept's methodological content and differentiation of performance indicators by management levels: economic entity, activities, units, staff. As well, the paper aims to build an algorithm of a key performance indicators system based on the tasks developed at the management levels, in particular, economic subject and activities.
Methods For the study, we used the methods of differentiation and algorithmization.
Results In the paper, we describe the principles of a four-level KPI system and differentiate groups of objects of performance appraisal. We present the relevant key performance indicators for the objectives and activities of the economic entity, and an algorithm of constructing an entity's KPI system in management by procedures.
Conclusions We conclude that the practical implementation of KPI system requires the development of appropriate methodological support for assessing the efficiency and effectiveness of the economic entity, processes, activities, and other management levels.

Keywords: key performance indicator, efficiency, economic subject, activity

References:

  1. Badaev I.V., Gotovchikova N. [The three sources and three components of KPI, or The company cannot be changed from within a priori]. Upravlenie personalom = Personnel Management, 2012, no. 23, pp. 18–32. (In Russ.)
  2. Buryak N.A., Yuditskii S.S. [Management by KPIs, or how to bypass obstacles]. Upravlenie personalom = Personnel Management, 2010, no. 24, pp. 38–42. (In Russ.)
  3. Modenov E. [KPI: the keys to effective management]. Konsul'tant = Consultant, 2012, no. 3, pp. 72–76. (In Russ.)
  4. Panov M.M. Otsenka deyatel'nosti i sistema upravleniya kompaniei na osnove KPI [Evaluation of activities and the company's KPI-based management system]. Moscow, INFRA-M Publ., 2013, 255 p.
  5. Revutskii L.D. [The efficiency of enterprises' economic activity: key performance indicators]. Auditorskie vedomosti = Audit Journal, 2010, no. 12, pp. 72–77. (In Russ.)
  6. Safarov A. [The Kingdom of crooked KPI: a development strategy]. Konsul'tant = Consultant, 2012, no. 17, pp. 17–21. (In Russ.)
  7. Cherkashchenko N. [KPI system as a method of improving the business efficiency]. Konsul'tant = Consultant, 2010, no. 9, pp. 26–29. (In Russ.)
  8. Kaplan R.S., Norton D.P. Organizatsiya, orientirovannaya na strategiyu. Kak v novoi biznes-srede preuspevayut organizatsii, primenyayushchie sbalansirovannuyu sistemu pokazatelei [The Strategy-focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment]. Moscow, Olimp-Biznes Publ., 2009, 416 p.
  9. Kaplan R.S., Norton D.P. Sbalansirovannaya sistema pokazatelei. Ot strategii k deistviyu [The Balanced Scorecard: Translating Strategy into Action]. Moscow, Olimp-Biznes Publ., 2003, 305 p.
  10. Kaplan R.S., Norton D.P. Strategicheskoe edinstvo. Sozdanie sinergii organizatsii s pomoshch'yu sbalansirovannoi sistemy pokazatelei [Alignment: Using the Balanced Scorecard to Create Corporate Synergies]. Moscow, Vil'yams Publ., 2006, 384 p.
  11. Drucker P. Praktika menedzhventa [Practice of Management]. Moscow, Mann, Ivanov i Ferber Publ., 2015, 406 p.
  12. Meskon M., Albert M., Hedouri F. Osnovy menedzhmenta [Principles of Management]. Moscow, Delo Publ, 1997, 704 p.
  13. Babicheva N.E. Teoretiko-metodologicheskie osnovy ekonomicheskogo analiza razvitiya organizatsii na osnove resursnogo podkhoda: monografiya [Theoretical and methodological foundations of economic analysis of the development of organizations on the basis of a resource approach: a monograph]. Moscow, FINANSY i KREDIT Publ., 2012, 256 p.
  14. Fayol H., Emerson H., Taylor F., Ford H. Upravlenie – eto nauka i iskusstvo [Management is a Science and Art]. Moscow, Respublika Publ., 1992, 349 p.
  15. Deming W.E. Vykhod iz krizisa: Novaya paradigma upravleniya lyud'mi, sistemami i protsessami [Out of the Crisis: The New Paradigm of Managing People, Systems and Processes]. Moscow, Al'pina Biznes Buks Publ., 2007, 370 p.
  16. Sheer A.V. Biznes-protsessy: osnovnye ponyatiya. Teoriya. Metody [Business processes: basic concepts. Theory. Methods]. Moscow, Prosvetitel' Publ., 1999, 175 p.
  17. Anderson B. Biznes-protsessy. Instrumenty sovershenstvovaniya [Business processes. Tools of perfection]. Moscow, Standarty i kachestvo Publ., 2003, 272 p.
  18. Eliferov V.G., Repin V.V. Biznes-protsessy [Business processes]. Moscow, INFRA-M Publ., 2004, 319 p.
  19. Ievlev V.A., Popova T.V. Reorganizatsiya deyatel'nosti predpriyatii: ot strukturnoi k protsessnoi organizatsii [Reorganization of the activities of enterprises: from structural organization to the process-based one]. Moscow, Nauchtekhlitizdat Publ., 2000, 282 p.
  20. Lipuntsov Yu.P. Upravlenie protsessami. Metody upravleniya predpriyatiem s ispol'zovaniem informatsionnykh tekhnologii [Management by procedures. Enterprise management methods using information technology]. Moscow, Kompaniya Ai-Ti Publ., 2003, 224 p.

View all articles of issue

 

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 17, Iss. 1
March 2024

Archive