System of key performance indicators as a method for executive decision-making

Abstract

Key performance indicators, KPI are a proven cutting-edge tool for process productivity and staff performance monitoring. Therefore, today it is possible to find the use of this tool in the most varied spheres and industries. However, the system implementation is a long and painstaking process, which requires financial, labor and time expenditures. But in case of its successful implementation, KPI technology will provide the balance of advantage for the company management and contribute to its growth. The article presents the selection mechanism of KPI system development and implementation methods. Using key performance indicators, the organization is able to manage the process and modify it, as well as define objectives for employees and motivate them to achieve their objectives. KPIs are based on measuring quantitative benefits. Control shall be based on comprehensive and reliable information about the company’s process productivity. This is the only way to take quick management decisions, make adjustments to the operation of processes that will contribute to the achievement of strategic objectives as a whole.