SMART KEY PERFORMANCE INDICATORS SMART KPIs

Abstract

In today's competitive environment, the efficiency of management of a business entity is focused on assessing the effectiveness of all levels of management. Among the many developed innovative technologies of personnel management, one of the priorities is the system of evaluation of key performance indicators (Key Performance Indicators, KPI). Smart-economy that uses innovative tools: smart-technologies, artificial intelligence, smart-education, etc. has updated the KPIs from a basic scorecard system used by managers to an advanced navigation at the corporate governance level for making decisions on business strategies. KPIs enhanced with smart economics (also known as "smart KPIs") are self-improving models that are capable of predicting the movement of trends in the future by learning from measured values of the past. They become "smarter" as they gain more knowledge from incoming data and become more accurate, relevant and efficient over time. They are a system of financial and non-financial indicators that affect quantitative or qualitative change results in relation to a strategic target (the expected result of the activity). The purpose of the article is a comprehensive study of the methodological content of the concept of smart KPIs. In the process of researching smart KPIs, differentiation and algorithmization techniques were used. Performance of KPIs (Key Performance Indicators) is the main criterion for evaluating employee performance at enterprises that use western employee motivation systems and payroll variable calculations. KPI (Key Performance Indicator) is a key performance indicator. It is an indicator of achievement in a particular activity that can be measured and displayed numerically. KPI motivation system – an indicator of the effectiveness and success of meeting the goals. The purpose of this motivational system is to direct the actions of employees of all divisions in a single direction by performing specific indicators. The KPI of each individual employee determines the effectiveness of his or her specific work and is financially reflected in his remuneration, and generally intended to address the business goals of the entire enterprise. The basic principles of SMART management by objectives are characterized, SMART system of key performance indicators is deciphered. Classified relevant smart key performance indicators on the goals and objectives of the economic entity and the processes of activity. Outlined the importance of smart KPIs in the context of the use of smart technology, smart education for the development of smart economics. Conclusions are drawn on the important role and importance of using smart KPI for the development of a digital future and the smartization of all fields of activity.