Development and approving of the system of the most significant indicators

This article describes the importance of forming of the system of indicators which have the highest significance for a company. This system is very important for companies providing optimization of business processes and other improvements within the frames of the process approach.

Every morning before you go to work you wonder what the weather is like. It helps you to decide what to wear. According to the temperature outside you make your decision. It helps you to avoid overheat and not to feel cold.

When you drive your car, there are a number of indicators according to which you decide how properly your car is functioning. In this case, however, lots of indicators are hidden from you, and you can find them only if you provide electronic testing.

As well as many complicated mechanisms in the world, big companies create automated management systems equipped with electronic displays with indicator systems and other visual information which helps to get the most important and up-to-date information and to show it in convenient form for executive managers in order to take key and effective decisions.

Usually complicated systems have a huge number of indicators. However, some of them are more important and some of them are less. That’s why in order to choose the most significant ones, the analysis of all indicators should be provided. It is very important to choose optimal variants of their displaying for convenient work with them by people responsible for making management decisions.

Companies which provide optimization of business processes should focus on the dynamics of indicators. That’s why appropriate choosing of the most important indicators can help to monitor the progress of business process optimization and its results properly and eliminate possible mistakes.

Companies which have automated systems of management together with systems of displaying of the most significant information or situational centers have traveled a long way of choosing and forming of the system of the most significant indicators of company activities, their systematization, arranging of their gathering, monitoring and control of these indicators.

Continual improvement and optimization of business processes require a constant monitoring of business indicators. Executive managers of profit-making organizations should primarily control the value and value growth of their companies. It’s very important to pay more attention not only on profits, but on the value. If company management or owners of the company will check only profit indicators, then the company won’t start implementation of effective long-term investment projects, because it won’t be profitable the nearest two years. Focusing on short-term indicators can lead to financial losses in the future.

If profit-making organizations already have the system of significant indicators, non-profit-making organizations have certain difficulties with it, as their objectives may vary and depend on approving by parties concerned. Optimization of business processes in non-profit-making organizations is a more complicated form of improvement as it’s not connected with company profitability.

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