Importance The role and importance of key performance indicators in company operations are strengthening under socio-economic instability, changes in exchange rates, and rising commodity prices. Objectives The purpose of the study is to explore the nature and role of key performance indicators (KPI) in company management and highlight the most important factors affecting the efficiency of business processes; to classify and review functions of key performance indicators; to develop an employee appraisal system based on key performance indicators for a particular business process. Methods Using the Superjob portal data, we analyze the use of the key performance indicators system in company activities. The research draws upon the review of relevant economic literature and the method of structural analysis. Results We describe the role and importance of key performance indicators in improving the company performance; specify the concept of key performance indicator and factors hindering the KPI implementation; define the phases of building the company management system based on key performance indicators. The paper offers an employee incentive program using the key performance indicators for a particular business process, our own technique for calculating performance indicators on the car dealership case, and a scheme of work with KPIs. Conclusions and Relevance Owing to the use of KPIs, a company has an opportunity to consistently focus its employees and departments on corporate goals, as well as to streamline business processes.
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