main objectives of the activity;
the main elements of policy that japan phone number set the direction or narrow the field of activity;
programming of key actions aimed at achieving the intended objectives and within the boundaries of the applied policy.
The goal set before the enterprise is usually expressed in the form of achieving some quantitative or qualitative indicators. This may be the sale of products for a given amount, the conquest of a certain position (market share, position in the rating, etc.), the value of the company itself as a market object, other results.
To achieve the set goals, the paths to them and the means are set, otherwise the company may start to act according to the principle "all means are good on the way" or "the end justifies the means". Such a policy can lead to serious negative consequences in a short time. Taking this into account, the leading place should be given to the principles of activity.
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The rating of an enterprise is determined based on the indicators used in its calculation. And to find the market value of a business, its condition (resources, management and organization of activities, efficiency) must be taken into account, which is also determined based on the corresponding metrics. They are derivatives of the performance indicators (cost and rating of the company) and are in third place in the rating of indicator systems.
Objectives of the analysis of enterprise performance indicators
Source: freepik.com
All these data are set only by measurable parameters. They are usually called KPI (from English "Key Performance Indicators") - key performance indicators of the enterprise or key performance indicators.
KPIs are a specific representation of a goal that can be measured and are set for the organization at the same time as the goal is formulated. All KPIs can be divided into three subsystems:
Indicators of principle - they inform about how the accepted norms and principles of work are observed. Metrics of means of obtaining the result - indicators that establish the boundaries of the field of activity.
Performance indicators - they determine the achieved socio-economic parameters - the company's profit, its value, place in the ranking, production, and so on.
Indicators of condition (or efficiency) - they contribute to the distribution of places in ratings, are the basis for calculating the value of the enterprise, characterize its condition, potential opportunities, efficiency.
Thus, all three of the above-mentioned KPI subsystems must be used already at the moment of setting the enterprise's goal, and then all employees in each structural division of the organization must be familiar with them. In other words, the task is set in the form of a system of indicators of the enterprise's performance, and not only the goal itself, but also the planned indicators of its achievement (both guiding and limiting) are communicated to all departments and employees. That is, the indicators of each structure and employee are not set arbitrarily, but are based on the company's data.
These three subsystems of key indicators are decisive in making management decisions, developing strategies and calculating the results that the enterprise receives and will receive in the future.
In this case, the first decision in terms of management is the idea of what area the enterprise will work in, what it will produce and sell, what indicators these products will have. This is where the fourth subsystem comes from:
Product indicators - characterize the goods, outline a specific field and determine the subject of activity. This also includes indicators of each subject of activity.
The scope of activity and types of manufactured goods are determined by the owner of the company, and the main indicators of economic efficiency of the activity are determined by the enterprise. It is worth noting that the product itself is not yet a result, since it is not a fact that it will be sold. The result of the activity will be what the enterprise receives from its sale.