Plan: What to keep in mind, how to measure and get

Thema: Measuring and Evaluating Strategic Performance.
Plan:

1. 
   What to keep in mind, how to measure and get.
   
2. 
   Efficiency is measured in what units. Indicators of economic efficiency of the enterprise: calculation and evaluation. Economic efficiency assessmen.
   

3. Classification of types of efficiency assessment
4. Conclusion

The question of how to measure an enterprise is often asked. But the answer is that it has not yet been resolved in management. Only two rules of management can be emphasized, we accept them as truth, which are the following rules:

The efficiency of an enterprise can only be measured to the extent that it reflects the goals that the owner has set for his enterprise.

Enterprise performance indicators should reflect the dynamics of the results achieved by the owner, in accordance with the goals set by the owner of the enterprise.
Enterprise performance indicators and employee performance indicators are two different systems of indicators.
1. If, for example, the owner’s goal is to receive a dividend, then it is clear that he needs indicators related to economic results. However, the profit here is not enough - after all, it can be simply increased due to the savage exploitation of enterprise resources. Production - an additional product - the sum of the means of payment of profit and labor is sufficient. If the owner’s goal is to sell the business, then the economic value of the business will be its market value.

2. If, for example, the owner’s goal is to receive steadily increasing dividends - that’s one thing. If the owner’s goal is a sharp increase in results in the near future (but with inevitable growth in the future), then the indicators should already be different, because with such a radical change in the enterprise, profits may even decline future periods.

3. Kaplan and Norton’s Balanced Performance Index (BSC) showed good results in measuring enterprise performance and employee performance. He was only given a draft of a system of indicators to measure the efficiency of the enterprise. Only Kaplan and Norton decided to use the system of indicators developed by them to assess the performance and motivation of employees - that is, for personnel management and, accordingly, for enterprise management. Apparently, everything makes sense, only they did not take into account the characteristics of personnel management - the possibility of his opportunistic activity aimed at obtaining his personal results (personal indicators), even to the detriment of the enterprise. And the results of the introduction of this system were soon expected: at best, in the process of its implementation, the efficiency of enterprises remained approximately the same, in some cases they simply declined.

Thus, there is no single scale, single method and techniques for measuring enterprise efficiency, and looking for them simply means looking for the “philosopher’s stone”. Each company is unique both in its performance and in the evaluation of its effectiveness. And as can be seen from the above, this is a question that can only be solved for a particular enterprise in order to determine how it measures the efficiency of the enterprise. Note that the issue of measuring the efficiency of the enterprise is of particular importance in the development of the enterprise, without such a measure - it is impossible to talk about development without criteria. In addition to improving the overall efficiency of the enterprise.

Our company addresses performance measurement issues at the beginning of each of us. In this case, it is impossible to formulate projects to increase the efficiency of the enterprise.

Cost-effectiveness and efficiency
The efficiency of the economic system is determined by many factors:

production efficiency;

public administration;
socio-economic development;
living standards, education, health;
business competitiveness.
One of the methods of assessing economic activity is the result of social production, which testifies not to the growth rate of the volume of production, but to the cost of resources when it is achieved.

Indicators of economic efficiency of production are the most complete description of the economic activity of the state and the individual. In determining them, the efficiency of the economy of the whole state, the work of each individual industry, territorial unit, foreign trade, enterprises and each employee.

They also describe the value creation process in general and its individual stages, such as distribution, exchange, and consumption rate.

Methods of calculating economic efficiency indicators
Formula EE \ u003d Result / price - basic. Therefore, the indicators of economic efficiency in measuring the efficiency of each factor of different business entities include the following.

the ratio of net production (profit) to the average value of turnover and fixed assets;

profitability and return rate of products and PF;
production of goods and services per unit of cost;
savings in capital, materials, labor, wages, and so on.
The following direct and inverse indicators are used to measure the cost-effectiveness of production:

productivity calculated by the ratio of the obtained results to labor costs (the inverse measure is labor intensity);

The material efficiency calculated according to the formula MO \ u003d R / Z M, where R - results, Z M - material costs. The inverse for this category is material consumption (M \ u003d Z M / R);
return on assets and capital intensity;
investment and investment efficiency.
The most common indicator of economic efficiency is the ratio of the impact of economic activity (national income or gross domestic product) and the costs incurred to achieve it.

In macroeconomics, two indicators are used to determine efficiency:

growth of GDP per capita;

produce it for each unit cost.
Given the many different factors that affect the final results, it is not possible to assess how effective this or that activity is by considering only one indicator. Therefore, a system of interrelated indicators (both absolute and relative) is always used in practical calculations. It assesses all important aspects of the economic entity's activities.
System of cost-effectiveness indicators of production
The relative indicators that characterize the cost-effectiveness are conditionally divided into 3 groups according to the level of replenishment, which takes into account the results and costs:

generalizer;

private;
inseparable.

In the first case, one or more types of impacts and a number of resource costs that characterize the cost-effective operation of enterprises are compensated by, regional entities, and national economies in general. Such indicators serve as a basis for decision-making focused on changes at any level of the economy.

The main indicators of economic efficiency of the economy in this group will be as follows.

national income;

gross domestic product per capita;
generalized coefficient of economic efficiency;
labor productivity;
costs per ruble of manufactured product;
benefits;
production and product profitability.
Special indicators are used for individual elements of production and economic activity. They provide an opportunity to demonstrate the validity of the decision to improve the selected elements.

Thus, generalized indicators are the goal, while specific indicators are the means of performing calculations and analyzing efficiency.

The following requirements should be observed when selecting indicators of cost-effectiveness assessment:

The number of predictive features is selected depending on the objectives of the analysis.

The semantic meaning of each indicator must be taken simply and clearly, there is no possibility of vague reading.
For any indicator, objective quantitative data based on statistics and accounting should be provided. In addition, the maximum and minimum values ​​must be displayed in the numeric range.
If aggregate indicators of economic efficiency are calculated, only monetary indicators of results and costs, as well as their relative values ​​(percentages, coefficients, indexations) are used.
In addition to cost indicators, natural and labor measurement options can be used to calculate specific indicators.
First, two questions need to be addressed:

Decide on a method of converting various non-monetary parameters into income and cost (expense) indicators of private indicators.

Identify algorithms for combining these heterogeneous cost estimates that differ in terms of location, time, content, and the entity’s production and economic interests in the product life cycle, which typically define a particular economic system.
Methods of optimizing cost-effectiveness indicators
It is impossible to demand a complete coincidence of the indicators of economic efficiency of the enterprise and the national economy, just as it is impossible to assess the overall level of the national economy by generalizing its parts.

Therefore, the following important aspects should be taken into account when choosing the optimal method of calculating efficiency:

goal-oriented management decisions;

the level of specification required in the calculations;
comparison of the obtained estimates with the basic norm of economic efficiency;
the role of the planned economic activity in the full cycle of production and the expected results in the field of economic interests of business entities involved in its implementation, the role of costs.
With the diversity of different categories and types of economic decisions, in practice only two methods of radical optimization are envisaged:

Production of larger volumes of products and services with a certain amount of resource costs. Fulfillment of this task requires technical and technological re-equipment of production, introduction of innovations, improvement of skills and professionalism of workers, increase of labor productivity through the use of good materials and raw materials. This situation is characterized by the following formula: E N → maximum at Z = const.

Reduce costs by maintaining the achieved volume of production of goods and services. Such results can be achieved through resource-efficient use, processing, introduction of resource-saving technologies and reduction of staff. Z N → min da E \ u003dkonst.
There is also an integrated efficiency improvement model that combines the main criteria of the first two options and takes into account other optimization criteria (including natural): specifications, impact rate, cash flow and possible alternatives, area of ​​activity (field), competitors o 'similar prices, industry averages.

This situation is reflected by the following algorithm:

E N / Z N → maximum, where N is the number of the considered variant of the management decision.

Cost-effectiveness is the maximum use of available resources. To do this, you need to behave wisely, that is. not only does it allow for the constant interrelation of profit (profit) and cost, but also the minimization of maximum profit and cost.If society cannot increase the production of one commodity without reducing it, there will be efficiency in launching another. Efficient economy lies at the edge of production opportunities. In fact, the conclusion reached is the nominal efficiency proposed by the Italian economist Vilfredo Pareto (1848-1923). Social security, which has limited resources to study the maximum economic conditions, Pareto came to the conclusion that in such a state of the economy, no one can improve his condition without worsening his own, the life of another. Such a definition of efficiency is called Pareto optimum, Pareto optimality, Pareto-optimal condition. In this case, there are three prerequisites for achieving a Pareto-optimal state: first, is there a need for such a distribution of goods among consumers, in which each of them meets the needs of its consumers to the maximum (naturally, their 'within hunting capacity); second, it is necessary to distribute resources between the production of different goods to achieve the most optimal use of these resources (for example, if the efficiency of their use in aircraft construction is higher than in the automotive industry, then there should be more resources. placed in the output); third, which type of product is most complete (within the limits of production capacity) where all production resources are used.

The Pareto Optimum is a popular model for studying the effect of tiveness, but has two drawbacks. First, it does not take into account the distribution of resources among people, and as Nobel Laureate in Economics Amartya Sen (b. 1933) wrote, “the state of society may be approximate. second, Pareto optimum believes that efficiency can be achieved on its own, without government intervention, which is always practical. ri does not come.

The British Caldor and Hicks have proposed an alternative approach to determining efficiency - the principle of compensation (Caldor-Hicks criteria), according to which any economic change should be considered, and only the beneficiaries can hypothetically compensate the losers, and still win provided they win. If at the same time the loser is fully compensated, then the Pareto optimal condition is achieved, if not, the compensation is paid (or not paid in full), then in the quasi-optimal case ma, ya is the best among the sub-optimal. In this case, to achieve an approximate thymuma Pareto, the state can intervene by compensating the losers and / or taxing the winners.

1.1 The concept of economic efficiency

Economic efficiency is the ratio of the cost of efficiency and the cost of factors to the production process ... Determining the amount of cost-effectiveness, efficiency, as well as the relative efficiency of the economic system to reduce the useful end results of its work on resources. It is formed as an integral indicator of efficiency at different levels of the economic system and is the final characteristic of obtaining the maximum possible performance of the national economy.f benefit from available resources. To do this, you need to constantly be interrelated years (benefits) and costs, or in other words, to behave wisely. Rva prudent behavior is that the manufacturer and consumer of the brand strive for maximum efficiency and for this they maximize profits and minimize costs.

In practice, there is a difference between general (absolute) and comparative economics and technical efficiency.

Absolute economic efficiency is an indicator that characterizes the total value of economic energy for a given period.f efficiency compared to the size of costs and resources.

If an enterprise is forced to submit new projects that differ significantly in the level of capital investment in the alternative economic evaluation and are not comparable to the final results, then other methods are used for this. training manuals on economics and investment management. The biggest challenge in determining the cost-effectiveness of innovations is to take full account of all and giant effects. In general, the following are the most important economies and their effects are:

Decrease in production costs;

Decrease in specific capital investment (n per unit) on howling technology);

Absolute growth of production;

Increase in productivity (labor) using new labor tools relative to the base;

An increase in the service life of new equipment relative to the base (in this case, the result is achieved by completely changing the share of allocations) from the formation of fixed assets);

Reducing the specific consumption of existing materials (bone) using new techniques relative to the base;

The use of new technology based on the volume of product produced by the new technology unit, which changes the annual operating costs of the consumer;

Changes in costs associated with the introduction of new technology (e.g., and measures to protect the environment).

1.2 Economic efficiency: essence, measurement

It is well known that national income is a newly created value in these material production sectors. In other words, the amount of raw materials, fuel, energy and other means of production consumed in the process of production of the retained part of the gross social product. National income is calculated as the sum of net production of all branches of material production. In turn, the net output of a particular industry is defined as the difference between gross output, production and material production costs.

In some branches of material production, the producer is calculated on the basis of gross production. It is necessary to withstand the comparison of the growth rates of social labor productivity and increase the indicators. In this case, the prices set for the calculation of national income.

About the most important indicators of economic efficiency of a society are its production - labor intensity, material intensity, capital intensity and capital intensity. As noted above, in terms of the level of public productivity, th labor serves as a generalizing criterion for the economic efficiency of labor expended in the earlier stages of social production and occurs in raw materials, materials, fuels, energy, tools.

The labor intensity of products is the interaction of production and is defined as the level of live labor, the amount of labor, the ratio of costs and the total volume of products produced in the field of material production:

t \ u003d T / Q

Where t is the labor intensity of the product;

T - the amount of labor expended in the field of material production;

Q is the total volume of products produced (as a rule, br. On production).

In the first social product about the material consumption of the social product is calculated as the ratio of the cost of raw materials, supplies, fuel, energy and other objects of labor to the shaft. Material consumption of industrial products (volume changes, enterprises) is defined as the approximate ratio of material costs to the total volume of products produced:

t \ u003d M / Q

Where t is the level of material consumption of the products;

M is the total amount of material costs for the production of the product in terms of cost;

Q is the total volume of products produced (as a rule, br)

Development of the country on the reduction of material consumption of products is considered effective for the national economy. In addition, the largest sector of the economy in terms of production costs - industrial raw materials, basic and auxiliary materials, fuel and energy - almost 3/5 of the cost.

To a certain extent, the indicators of capital intensity and capital intensity of products are close to each other. The indicator of capital intensity of production shows the ratio of the value of capital investments to the growth of the volume of output determined by them:

Kq \ u003d K / Q,

Where Kq is the capital intensity of the products;

K is the total volume of capital investments;

Q- product volume growth. Capital intensity can also be calculated relative to the growth of national income produced.

The capital intensity of production is calculated as the ratio of the average value of fixed assets of the national economy to the total volume of production:

Here F is about the average value of people's basic means of economics;

Q is the total volume of products produced (as a rule, gross output).

Market relations are the main form of communication between producers and buyers, i.e. the mechanism of coordination of their actions. In the process of this relationship, all sectors of the economy, the efficiency of each enterprise are revealed.

Efficiency is the ratio between the results obtained and the cost of implementing them. The results can be viewed:

Profit (income);

Services;

Gross domestic product.

Costs can be considered:

Human labor costs;

Costs material resources;

Financial expenses

A generalizing criterion of the economic efficiency of social production is the level of social labor productivity. And about others, social labor productivity is measured by the ratio of the national income produced to the average number of workers employed in the material production sectors,

P total \ u003d SH / Hm

Where P is the total. - Social labor efficiency

SH is the national income.

Chm is the number of workers in the material sphere.

The most common variety of forms of management available in market practice is the manifestation of cost-effectiveness. Economic and technical efficiency peaks describe the development of key factors in production and utilization efficiency. Social efficiency reflects the solution of specific social tasks (improving working conditions, protecting the environment, etc.). Usually, social outcomes are closely related to the equation. Different aspects of the activities of enterprises that are effective in the economy of enterprises in the industry: the efficiency of specialization, concentration, cooperation, labor resources, placement of production, etc. However, all of these types of efficiencies should ultimately help increase enterprise profitability.

One of the main categories of production efficiency ps night economy, which is directly related to the ultimate goal of developing social production and to each enterprise individually. The most common view is the quantitative ratio of these two quantities in the economic efficiency of production - the results of the implementation of economic activity and production costs. Improving the economic efficiency of production in Essence is a problem in the process of increasing the economic results for each unit of cost and the use of available resources. Under market conditions, each enterprise is an economically independent producer of goods, which has the right to use any assessment of the effectiveness of development, its own production ram, tax benefits and social restrictions set by the state, and Cheny

The methodology of complex analysis and evaluation of economic activity efficiency plays an important role in management analysis. Its application provides:

1) an objective assessment of past performance, the effectiveness of management in the search for increasing reserves.

2) Feasibility study and management for the transition to new forms of private capital.

3) comparative evaluation of manufacturers in the selection of competitors and partners.

Performance is a quantitative measure that ensures the effectiveness of rogo innovation in cat value. New equipment, advanced technologies allow to increase labor productivity, production quality, to raise my product to a higher level.

The generalizing criterion of economic efficiency of production is the ratio of the level of productivity and costs (cost of input resources) to the total cost of income (expenses)

Conclusion
Thus, evaluating the effectiveness of control is an important element of project design and development of planned solutions, which stems from the absence of planned activities and is implemented and implemented to select the most reasonable version of the construction or improvement method. The effectiveness of the organizational structure in the analysis of the management structures of existing organizations for the management and implementation of activities for planning and implementation of organizations should be assessed at the project stage