Key Performance Indicators for the Implementation of Strategic Plans

Abstract

The effective functioning of organizations is directly related to the strategic changes that are carried out using the strategic planning system. The importance of strategic planning today is due, first of all, to a dynamic external environment, a high level of competition, and the need to have a strategic plan to achieve ultimate goals. Strategic planning is especially important in large organizations, as it determines the direction of their development and identifies activities that contribute to the achievement of the organization’s goals. At the same time, the following should be singled out as the most important tasks in choosing the direction of effective development of the organization: the development of a strategic vision and mission of the organization, setting goals and choosing the strategy itself. However, strategic planning should not be confused with planning, as strategic planning is the work on a coherent set of decisions that determine the place of an organization in its industry in order to create competitive advantage and sustainable profits. In turn, the correct alignment of the strategy of organizations will have a positive impact on regional incomes and, as a result, on filling the budget of the region and ensuring employment at its level. In general, strategic planning is high on the priority list of organizations that have faced strong pressure to adapt to the ever-changing environment around them, including factors such as new generations of technology, changing rules, market fluctuations and more agile competitors. As a result, one can imagine such a system of strategic planning in an organization that contributes to the achievement of its goals and provides competitive advantages. The article is devoted to the peculiarities of strategic planning and its role in the effective functioning of the organization. The article also discusses the reasons for the increased attention to the practice of strategic planning only from federal, but also from regional authorities. In addition, the article discusses performance indicators as a convenient tool for assessing and planning the organization’s activities, which form the basis of the strategic planning system.