Designing a system of key performance indicators for strategic decision-making

Abstract

Importance: the article discusses the issues of forming a system of key performance indicators, taking into account the development of the information base and digital technologies, as well as changing stakeholder requests. Purpose: to investigate issues of developing a system of financial and non-financial indicators for assessing the organization’s performance and to propose ways to solve them. Research design: the study reveals the levels and procedures for the formation the levels and procedures for the formation of key performance indicators based on financial reporting data, alternative financial indicators for investment and financial decision-making purposes, ESG information for analyzing the success of an organization in achieving its business goals and meeting the requirements of stakeholders. Results: the paper proposes a comprehensive approach that focused on the step-by-step process of building a system of key performance indicators. The approach integrates financial, operational and ESG metrics that are essential for the organization and its stakeholders. The criteria for selecting indicators are their relationship to the strategy, regulatory and methodological guidelines, as well as the stakeholder requirements. The article emphasizes the importance of the time factor when designing a system of indicators. It is also important to adhere to an industry-specific approach that allows for a uniform assessment of indicators specific to the business models of companies in various industries.