KPI-Based Management

Enterprise Performance Management (EPM) System Features

The “Goal and KPI Management” solution is based on a set of proven performance management methodologies and tools, including:

• Business Performance Management (BPM)

• Key Performance Indicators (KPI)

• Balanced Scorecard (BSC)

• Management by Objectives (MBO)

The use of these methodologies enables companies to systematize enterprise management processes, improve strategic planning efficiency, and enhance the practical execution of corporate strategy.

The system translates corporate strategy into a clear and structured framework of goals, measurable targets, and initiatives that are understandable to all employees. This significantly increases accountability, execution discipline, and motivation. Strategic objectives are cascaded down to every level of the organization, ensuring alignment between corporate strategy and individual performance.

Product Advantages

Implementing the “Goal and KPI Management” configuration to support Balanced Scorecard and MBO principles provides the following benefits:

• Centralized goal setting for departments, project teams, and individual employees with full strategy cascading to the lowest organizational level

• Full automation of employee performance evaluation based on predefined assessment models

• Flexible calculation of bonuses and incentive payments through configurable variable compensation components

• Real-time monitoring of KPIs across departments and the entire organization

• Clear and intuitive visualization of performance metrics

• Data exchange capabilities with external databases (e.g., Visual FoxPro, Microsoft SQL Server)

• Complete data confidentiality with support for anonymous evaluation

• User-friendly and familiar interface

Methodological Foundation

The solution includes powerful tools for evaluating overall business performance through the Balanced Scorecard (BSC) methodology.

The Balanced Scorecard, developed in the early 1990s by Robert Kaplan and David Norton, is a strategic management framework that goes beyond traditional financial measurement systems. It enables organizations to clearly define strategic objectives and ensure their effective implementation.

BSC provides insights into both internal business processes and their external outcomes.

In today’s highly competitive and volatile economic environment, sustainable competitive advantage cannot be achieved solely through financial management and investment in physical assets. The ability to mobilize and leverage intangible assets — such as employee knowledge and expertise, customer loyalty, innovation culture, and IT investments — has become a critical success factor.

The “Goal and KPI Management” software solution incorporates these methodological principles, enabling organizations to implement long-term strategic management effectively.

Functional Capabilities

“Goal and KPI Management” is a comprehensive strategic business management system that provides functionality to address key executive-level tasks:

• Monitoring and automation of planning and performance review processes within reporting periods

• Analysis of employee productivity based on approved planning models and performance indicators

• Communication of corporate objectives to employees with built-in execution control

• Coordination and management of personnel activities across departments, project teams, and management levels

To explore the full capabilities of the product, you can review the available product demo videos.

Part 1. Goal and KPI Management. Balanced Scorecard and Planning Models

This section introduces the core principles of Goal and KPI Management, focusing on the implementation of the Balanced Scorecard (BSC) methodology and structured planning models.

Part 2. Goal and KPI Management

Period Closing, Accruals and Reporting

Implementation Procedure

The implementation of the “Goal and KPI Management” software product significantly differs from standard deployments of other solutions built on the 1C:Enterprise platform. This is due to the fact that the solution is based on the Balanced Scorecard (BSC) methodology and Management by Objectives (MBO) principles.

The system itself is a tool for executing a comprehensive strategic performance management methodology. Therefore, implementation begins with developing the company’s strategy map, defining KPI architecture, and establishing relationships between indicators.

Preliminary Workshop

At the initial stage of the project, during the preliminary assessment phase, we recommend that the client’s working group participate in a practical workshop:

“Balanced Scorecard (BSC), Management by Objectives (MBO), and KPI-Based Management. Practical Implementation Using ‘Goal and KPI Management’, Version 2.x.”

The workshop combines theoretical foundations with hands-on system configuration, enabling project leaders on the client side to assess how effectively their corporate standards and planning models can be implemented within the software solution.

Participation significantly increases the effectiveness of the implementation project.

Project Implementation Stages

1. Preliminary Assessment

The purpose of this stage is to:

• Define requirements for system customization

• Estimate project complexity and workload

• Identify adaptation needs

• Demonstrate Agile-based incremental system configuration

The client receives a structured report containing functional requirements and implementation estimates.

2. Formation of the Working Group

The client forms a project team including:

• HR representatives

• Finance department (functional stakeholders)

• IT department (technical stakeholders)

• Other key business representatives

Interviews are conducted to clarify requirements, business processes, and document workflows.

3. Prototype Case Development

The client provides a case scenario for configuring a prototype (typically 2–3 KPIs). The case includes:

• Organizational structure

• Business process descriptions

• Planning and actual performance data

• Integration requirements with existing systems

4. Prototype Configuration

The implementation team configures a working prototype using standard system functionality, aligned with the client’s methodology.

5. Training & Demonstration

Online sessions (typically at least four sessions of 1.5 hours each) are conducted to:

• Demonstrate the configured prototype

• Provide functional training

• Collect additional requirements

6. Final Report Approval

The implementation partner delivers a detailed report including:

• System customization requirements

• Business process descriptions

• Integration architecture

• Project cost estimate and timeline

Implementation Phases

• Product installation

• Initial master data configuration and integration

• Planning model and calculation setup

• Pilot operation (2–3 months in selected departments)

• Full employee training

• Go-live (production deployment)

Pricing

• Software license cost: 16,500 UAH

• Workshop participation: 4,200 UAH

• Corporate discounts available

• On-site corporate workshops possible

Workshop format:

• 4–5 participants per group

• Duration: 2 days

• Includes coffee breaks and lunch

To register: info@vamark.com

Workshop Program

• Organizational development models (L. Greiner, I. Adizes)

• Balanced Scorecard methodology and perspectives

• Strategy development and strategic objectives

• Practical exercise #1: Strategic goal development

• Strategy map development

• Practical exercise #2: Strategy map creation

• KPI and performance standard development (SMART methodology)

• Practical exercise #3: KPI model development

• Strategic initiatives and project planning

• Practical exercise #4: Initiative development

• Compensation management and bonus calculation models

• Variable pay calculation formulas

• Planning models configuration

• Practical exercise #5: Planning and accrual model development

• Process models within BSC framework

• Meeting management and performance control