The formation and development of the performance assessment method in the conception of operational management

Abstract

       This article is devoted to the integrated performance assessment method – an improved version of the earned value management. It provides a description of the key features and benefits of practical application of the performance assessment method to develop estimates and forecasts of activity. It sets out the authors’ opinion about the performance assessment method for execution of key performance indicators in a balanced scorecard. The article touches upon the problems of management due to the unsettled terminology among managers, and various interpretations of the terms: efficiency, effectiveness and economy in management, and proposes a definition to align terminology to uniformity. It provides in a graphical way the vector system: efficiency as the resulting vector of activities obtained from multiplying the vectors of productivity and efficiency, orthogonal to the plane of the multiplied vectors. It gives a conceptual model of the organizational structure of management and cooperation of stakeholders, which opens opportunities for the economic growth of the enterprise, its protection from external or internal risks, both managerial and technological.