But we must not forget that financial indicators, for all their objectivity, essentially reflect yesterday's state of affairs in the company. They are inherently unable to predict the future. Therefore, a strategic decision based solely on studying these indicators can be considered, without much exaggeration, to be made blindly.
In fact, the first alarming symptoms indicating the emergence of problems in the process of achieving strategic goals can only be identified by analyzing the first financial failures, the causes of which may lie in declining demand, deterioration of quality, and imperfect processes.
Therefore, a modern company vitally needs an effective management mechanism that allows it to respond promptly and rationally to changes in the situation. Only it can ensure the dynamic development of the company in conditions of fierce competition and a constantly changing business environment.
Such a mechanism is based on a system of proactive daily-strategic management, which is founded on KPI, representing a set of key business performance indicators. Using this system, the company develops its own development strategy based on preliminary strategic analysis. The analysis allows identifying main trends, assessing both potential opportunities and the likely degree of risks in the company's development. In addition, the analysis contributes to the accumulation of corporate knowledge.
Having completed this preliminary work, the company proceeds to implement the strategy developed on the basis of the analysis. For more successful operational control over the progress of its implementation, it is advisable to initially divide the entire strategy into stages and directions.
The assessment of work towards achieving each goal is carried out on the basis of KPI, which creates the most balanced picture of the implementation of short-term and medium-term goals, as well as the dynamics of financial and non-financial performance indicators.
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