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.
Highlights
KPI (Key Performance Indicators) acronym is increasingly appearing in management books, in articles of well-known magazines, if it comes to efficiency and its measurement
Due to the fact that assessment methodology of organizations effectiveness based on KPIs originated in Europe, most often we can explore description of experience in implementing the KPI system in foreign companies
Principle of simplicity implies that the KPI system formulated in the corporate language is understandable to each and every company's employee
Summary
KPI (Key Performance Indicators) acronym is increasingly appearing in management books, in articles of well-known magazines, if it comes to efficiency and its measurement. The most famous supporter of management on the basis of measurable objectives is Peter Drucker, who focused on the key performance indicators in his publications [1,2,3,4,5]. He had an opinion that "...you can't manage what you can't measure" [5]. Robert Kaplan made a great contribution to the KPI development [14, 15]; he wrote many books on a balanced scorecard development and implementation, which includes KPI In publications he says, "Only when objectives are translated into numbers, they worthy of the name. As long as the objective has no terms and no indicators for evaluating its achievement, it is not an objective, it is a dream"
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