ANALYSIS OF EXISTING APPROACHES TO UNDERSTANDING THE ESSENCE OF KPI AS A BASIS FOR BUILDING A BSC

Татьяна ЗАВАЛИЙ Житомирский государственный технологический университет

Abstract

The issues of understanding the essence of KPI, their classification, characteristics and differences from the usual metrics in the context of the different authors’ works have been revealed. There is no generally accepted approach to understanding KPI, because the processes of developing and selecting KPIs are the management team’s competence. The author is examining issues of metrics' recognition requirements as a KPI. The necessity to distinguish the requirements to the particular KPI, to the KPI system and to the functions that they must perform in the process of use has been grounded. According to the author, BSC is a model of KPI organization in the process of implementing a strategy, and the KPI system is an element of BSC. To ensure effective management of the enterprise the dynamic KPI system, which would create the possibility of adaptive response and changes in existing indicators over time, since they may not correspond to the relevant requirements and the specifics of the enterprise’s development, has been proposed. Keywords: key performance indicators, KPI system, balanced scorecard, KPI recognition requirements.