Abstract:
Dynamism of internal and external environment of the enterprise functioning, as well as the constantly increasing competition predetermine the necessity of constant optimization of business processes and efficient organization of tactical and strategic planning at the enterprise. The aim of the paper is to define the trends in optimizing business processes
[...] Load More of vertically integrated oil and gas companies. The research sets forth a modified approach to optimization of business processes at the enterprise based on the concept of a balanced system of indicators. A multi-criteria approach to optimizing efficiency has been used; it is based on maximization of target values of key performance indicators and actual ones obtained from the optimization results and minimization of distance between them. The system of key performance indicators of vertically integrated oil and gas companies has been determined proceeding from the strategic goals of the companies and the specifics of the industry with due account of national and foreign management practices. These are the indicators reflecting the efficiency of the company's functioning in the blocks Personnel, Internal Business Processes, Clients, and Finance. Using, as a fundamental one, the concept of a balanced system of indicators allows building a model of decomposition of strategic goals in the blocks with the definition of responsible managers, their tasks, and target values of key performance indicators at each stage, the terms of their achievement, as well as model the degree of achieving strategic goals of the company based on the efficiency of business processes at individual stages. The system of key performance indicators defines tasks in the context of business processes and expected results. Comparative assessment of financial and economic activities of national and international vertically integrated oil and gas companies was carried out based on the values of key performance indicators. The peculiarity of the proposed modified approach to optimizing business processes at the enterprise is the use of scores, depending on the level of indicators, rather than their absolute values, as performance indicators. Numerical values converted into points allow ensuring comparability of values of indicators of all components of a balanced system without the need for their standardization. It leaves room for mutual comparison of numerical data with point scores without distorting the results, as it happens during standardization in case of changes in values of indicators of descriptive statistics on the sample. The proposed approach is universal and can serve as a methodological basis for determining the strategic orientation of the enterprise and the tasks of optimization of business processes, control over their implementation regardless of the industry of operation.
Keywords: balanced system of indicators, strategy, business processes, optimization, efficiency
Journal title: available for those who has paid.
Region of the journal publication: Europe.
Scientific field: Business, Management and Accounting, Computer Science, Economics, Econometrics and Finance, Social Sciences.
Indexing of the journal: Scopus Q1-2.