Доктор экон. наук, профессор, зав.кафедрой информационных технологий и инструментальных методов в экономике, ФГАОУ ВО «Национальный исследовательский Нижегородский государственный университет им. Н.И. Лобачевского». Область научных интересов: стратегическое управление, интеллектуальные системы в сфере экономики и управления.
Doctor of Economics, Professor, Head of Department of Information Technologies and Instrumental Methods in Economics, Nаtional research state University of Nizhny Novgorod. Research interests: strategic management, intelligent systems in the field of economic and management.
Доктор экон. наук, начальник департамента стратегического развития и развития производственной системы АО «ОКБМ Африкантов». Область научных интересов: стратегическое управление, операционная эффективность, управление рисками.
Doctor of Economics, Head of the Department of strategic Development of Afrikantov OKBM JSC. Research interests: strategic management, operational efficiency, risk management.
Кандидат экон. наук, специалист департамента стратегического развития и развития производственной системы АО «ОКБМ Африкантов». Область научных интересов: стратегическое и операционное планирование, управление рисками.
PhD in Economics, specialist, Department of strategic development of Afrikantov OKBM JSC. Research interests: strategic and operational planning, risk management.
The article describes the strategic management methodology based on the use of key performance indicators system, recommendations for its further development are given. The necessity of integration above-mentioned methodology with the methodology of risk management systems is justified for large companies. The main conceptual states and stages of key performance indicators system and risk management system integration are given. Integration processes are illustrated by the example of a particular large company.
Conceptual states and integration stages of key performance indicators system with risk management system are considered. Specific organizational and technical measures for implementation of above-mentioned systems at the nuclear industry enterprises are described as well.
Key performance indicators for risk management system are proposed to be laid for introducing enterprises’ performance management.
The results of theoretical and empirical research, the described tools and approaches can be used in other industrial enterprises, regardless of their business.
В исследовании рассматривается методология стратегического управления на базе использования системы сбалансированных показателей эффективности, даются рекомендации по ее дальнейшему развитию. Обоснована необходимость интеграции этой методологии с методологией построения системы управления рисками и возможностями для крупных компаний, промышленных комплексов и предприятий. Приводятся основные концептуальные положения и этапы интеграции методологии построения системы сбалансированных показателей эффективности с методологией построения системы управления рисками и возможностями. Интеграционные процессы иллюстрируются на примере конкретной крупной компании.
Сформированы и рассмотрены концептуальные положения и этапы интеграции системы сбалансированных показателей эффективности с системой управления рисками и возможностями. Предложены конкретные организационно-технические мероприятия с учетом специфики развертывания систем системы сбалансированных показателей и системы управления рисками и возможностями на предприятиях атомной отрасли. Предложены измеримые показатели эффективности системы управления рисками и возможностями для внедрения в практику управления эффективностью деятельности предприятий.
Результаты теоретико-эмпирического исследования, описанные инструменты и подходы, могут быть использованы на других промышленных предприятиях вне зависимости от рода их деятельности.
The basis of the new industrial society (Industry 4.0) is a developed, high-tech and cost-effective industrial production, involving the widest possible use of information technologies in production (Tolkachev, 2017; Bodrunov, 2018). Modern corporations and companies will need to comply with a number of conditions for the transition to it. The first condition is organic development and introduction of modern advanced information technologies into their functional activity. At the legislative level, the goals of the development of advanced digital systems of production management, inventory and communications are defined (Decree, 2018; Order, 2017). Having advanced information technologies in itself is not a source of long-term sustainable business leadership. Advanced information technologies provide only a short-term competitive advantage, become obsolete fairly quickly and can as rule be easily and relatively cheaply copied by competitors (Milper, 2010).
The second condition is to build and improve the company's culture of current functional activities and medium-term planning. This will require a radical reengineering of business processes, taking into account advanced innovations in technology, focusing on the development of knowledge, training and retraining of employees aimed at improving their intellectual potential and, as a result, ensuring the effectiveness of business processes, the creation and configuration of new organizational and management mechanisms, etc. Successful implementation of the second condition is designed to provide medium-term competitive advantages.
The third condition is the development and implementation of effective strategies for the company’s development. The main emphasis should be on their dynamic ability to constantly update and create new business processes in a changing environment, successful strategic management of innovations, taking into account the best international practices, etc. The implementation of the third direction allows to determine the sources and mechanisms of long-term strategic competitive advantages.
Current functional activities, medium-term planning and strategic development require the application of appropriate methodologies, regulations and tools (Trifonov, 2014). In practice today the balanced scorecard is widely used (BSC) (Introduction, 2006; Kaplan, Norton, 1992), less popular are the concept and methodology, mainly represented in the international and national standards and in international standards of organizations, which allow to establish and implement a holistic risk management system (Brykalov, Balyberdin, Trifonov, 2018а). It should be noted that both types of methodologies were developed and implemented at large enterprises almost independently from each other. In our opinion, these methodologies should be organically combined and complement each other within a single management system at the enterprise.
The purpose of the study is to justify the need and feasibility, as well as the development of conceptual provisions and recommendations for the integration of planning systems with risk management systems at large enterprises in the transition to Industry 4.0.
The BSC allows to link strategic management with management at the tactical and operational level, to express the mission and strategy of the company as a system of clearly defined goals, specific tasks and specific indicators, to take into account when planning not only quantitative but also qualitative indicators and factors, to provide monitoring and control over the implementation of goals and objectives at all levels of management, etc. The BSC methodology can provide a kind of compromise between a focus on maximum financial performance and a focus on reasonable (within certain rules and legal norms) social justice. The flexibility of the BSC methodology makes it a very active tool that allows taking into account the specifics of the company, the competitive environment, technological aspects of development, the external environment and other factors. Initially, the BSC included four groups of key performance indicators (financial indicators, customer satisfaction and loyalty, quality of internal business processes, training and growth of employees).
In the transition to Industry 4.0, the development of high- tech industrial production, four groups of indicators must be necessarily complemented with two more - advanced technologies (including information technologies) and knowledge and innovation potential (development and modification of knowledge and innovation). In addition, taking into account the specifics of the functional activity of the enterprise, the impact of this activity on the subjective environment and the social environment, the indicators related to the environment, society, organizational and management potential can be included.
The concept of strategic management of the nuclear industry enterprises of the State Corporation "Rosatom" provides a comprehensive application of a single approach at all levels of management of the hierarchical structure:
For all organizations included in the management of the State Corporation "Rosatom", the approaches and tools for the decomposition of strategic goals are fixed by local regulations (Order 2016, Order 2017). The latter makes it possible to focus the attention of managers and available resources on achieving strategic goals at all levels of responsibility. Decomposition of objectives allows determining the priority directions of investment projects aimed at improving production and economic performance at the points of greatest impact on improving the efficiency of the structural unit of the enterprise/ State Corporation as a whole in the current period and in the long term.
To apply a systematic approach to the deployment strategy and goal-setting in organizations of State Corporation "Rosatom" the unified tools of the strategic obj ectives decomposition (UT SOD) are being implemented: the objective tree, maps the key performance indicators (KPIs), X-matrix, and data center.
An objective tree is a key tool for the decomposition of goals, it defines and visualizes the economic meaning of the company's activities and mechanisms to improve operational efficiency in the current period and in the long term. In the State Corporation "Rosatom" decomposition of goals is carried out from top to bottom: from the FRC-1 to FRC-2 and further to the FRC-3. Decomposition is possible at the formation of new business lines (new FRC-3) or in other cases by the decision of the management of FRC-1. Responsibility for achieving the decomposed goals of the CFD-3 falls on the Head of the higher level of management, in particular, the Director of the enterprise of FRC-3 or on his/her deputies in the areas. Taking as a basis the logic of enterprise management and its organizational role model, the leaders of the FRC-3, carried out the decomposition of goals and related indicators of the FRC-3 to the next vertical management levels, which, in turn, decompose the resulting goals further. Thus, the decomposition of goals and indicators within a single enterprise of FRC-3 is performed up to the Head of the production unit (department), the leader of a small group, forming a single objective tree (Fig. 1).
X-matrix is an individual tool of the Head of each level of management. He/she creates a matrix on his/her own in order to form or take into account current programs, projects, investment activities and initiatives aimed at achieving decomposed to him/her strategy target values for FRC-2 (Fig. 2). With the help of X-matrix the manager can timely detect and identify the risks of achieving key indicators.
The X-matrix is recommended to the leaders in order to carry out:
Effectiveness evaluation of the activities carried out by senior management setting KPI to managers and assess their performance with the use of KPI card.
KPIs of the heads of the organizations included in the management circuit are being established in accordance with the goals, strategies and long-term development program of the State Corporation "Rosatom" and are based on compliance with the basic principles of assessing the effectiveness of employee performance management:
At the enterprise, the KPI system extends to a level that is determined by the specifics of the enterprise's activities, affiliation and current position in the industry, the volume of work and the policy of the enterprise management.
The proposed method of the KPI system formation for the heads of the nuclear industry enterprises (Brykalov, 2014) formulated the requirements and principles for the formation of KPI maps of managers at all levels of management at the nuclear industry enterprises, which include:
Important additional specific indicators are formed in the KPI maps of the heads of enterprises: the implementation of the State Defense Order (SDO), the increase of the utilization coefficient of installed NPP capacity, safety performance activities (frequency rate of injuries with temporary loss of working capacity, personnel exposure in excess of 50 m3V), and others.
Lowering and cutting off KPIs are used in exceptional cases, only for KPIs that reflect the results of activities in the field of radiation, industrial, environmental safety, labor protection, as well as the performance of state tasks.
According to the analysis of the application of a balanced scorecard in relation to the organizations of the nuclear industry (Brykalov, 2015), as the KPI of the head of the organization of the nuclear industry can be:
With the aim to respect the principles of ambition and validity of the assessment of achievement of KPIs for heads of organizations of the State Corporation "Rosatom", a matrix for the roles separation is being
developed, which shows which workers are responsible for the ambition of KPIs target values and the confirmation of such achievement, the owner of the KPI maps is unable to set himself a target value and to confirm the level of KPIs performance.
Information centers (InfoCenters) are recommended to be implemented as an additional tool for the decomposition of goals used for visual management of production, economic and management processes in organizations. InfoCenter allows to identify problems and increase the speed of management decision-making through effective production meetings and quick communications, forms quality channels of constant feedback for managers of different levels of management (Fig. 4).
The current market environment is characterized by a high degree of uncertainty. As a rule, it is very difficult to take into account, foresee and describe in advance the dynamics of all processes occurring in the company and enterprises. In addition, the external environment is characterized by high turbulence: trade wars, localization of markets, various sanctions, tightening of customs barriers, etc. In these circumstances, many companies have realized the need to develop and implement in everyday practice integrated risk and opportunities management system (R&OMS), allowing to take into account the risks and manage them at all levels of management - from strategic to operational and technical.
The development of methodologies for constructing R&OMS was delayed in relation to the development of management systems methodologies and, in particular, the methodology of the BSC. The undoubted advantage of R&OMS is the reliance on carefully curated recommendations and requirements of international and Russian standards (FERMA, COSO ERM, GOST R ISO 31000-2010, GOST R ISO 31010:2011, GOST R 518972011, etc.). However, most often the complex R&OMS was eventually built as a relatively isolated module (block) in the general management system. In addition, modern enterprise information systems of the ERPII or SAP/R3 (especially in their early versions) class, covering with the complex automation all functional activities and management of companies, as a rule, did not provide for requirements for risk accounting.
The observed weak links of BSC methodologies and methodologies of building R&OMS hinder the development of companies in the long and medium term. It is particularly important to consider and analyze+risks when assessing the mission, goals and objectives covered by the planning system. From this point of view, R&OMS should be quite rigidly tied to the various stages, elements and mechanisms of the company's planning system, in particular to the methodology of the BSC.
2.4. CONSTRUCTION OF RISK MANAGEMENT SYSTEM AT NUCLEAR INDUSTRY ENTERPRISES
Risks and opportunities management in organizations in the management circuit of State Corporation "Rosatom" is carried out in order to ensure compliance with the requirements of ISO 9001:2015 and is regulated by local regulations [Regulation on the risk management system]. The experience of implementing R&OMS at a large industrial enterprise of the nuclear industry is proposed to consider the example of "OKBM Afrikantov" JSC).
"OKBM Afrikantov" JSC (Nizhny Novgorod) - a large research and production center of the State Corporation "Rosatom", it consists of a multidisciplinary design team, its own research, experimental and production bases. The company has key competencies and produces a full range of works and services on the horizon of the life cycle of reactor equipment and the equipment of various types for nuclear power plants. "OKBM Afrikantov" JSC takes part in solving the tasks of the State Corporation "Rosatom" and divisions of the nuclear industry [Public annual report, 2018; Brykalov, 2016].
The process of building R&OMS in the organization is carried out taking into account:
The process of risk management in the organization includes the management of project risks (specific risks under each contract within the framework of key projects) and operational risks (risks of subdivisions, united in different areas of activity into different functional systems).
The risk management process is a cycle that is repeated monthly (quarterly), it includes the processes of identification, analysis, evaluation, risk management and monitoring of risks of the organization.
Initiation and regulation of the project risk management process are included to the competence of the Project Manager, risk management of operating activities - the competence of risk owners in the areas of activity and/or managers of functional systems.
The effectiveness of R&OMS is determined on the basis of an annual self-assessment, as a confirmation the following is identified:
The process of R&OMS deployment in the organization revealed problems of organizational, technical and social nature, hindering the full implementation of this process:
Risk and opportunities management processes are necessarily to be taken into account when developing and/or updating quality management system standards: the standard of the environmental management system, standards in the field of industrial safety and labour protection, the standard for project management, etc.
At the same time, R&OMS is not yet integrated into the processes of strategic and operational management, is not taken into account in the decomposition of goals and the development of KPI maps, which, in our opinion, is one of the main constraints for the further development and improvement of R&OMS in the organization.
In our opinion, modern management, especially at the strategic level, needs methodologies for R&OMS construction, and these methodologies need to be organically introduced and integrated into existing and projected mechanisms and organizational management schemes. In particular, the considered methodology of the BSC should undergo such a transformation. Modern corporate information systems should also include blocks for automation of R&OMS at all levels of management.
Options and approaches to the integration of the BSC methodology and risk management systems are outlined schematically and in a fairly general form [Implementation, 2006].
We list the main conceptual provisions for the integration of the BSC and R&OMS in more detail and specifically:
The BSC is significantly expanded and enriched by providing additional information on the risks impeding the development, introduction and implementation of a well-designed and documented strategy. Conversely, R&OMS methodology is organically integrated into the continuous process of strategic management at all levels of management.
Within the framework of the concept of the BSC methodology integration and the R&OMS methodology at a large industrial enterprise of the nuclear industry, it is proposed:
When decomposing the risks of achieving strategic goals, it should be taken into account that a specific strategic goal can be associated with several risks related to different functional systems and activities of the organization, and, conversely, a specific risk (risk factor) can be associated with several strategic goals.
The risk of exceeding the rate of injuries with temporary disability of more than zero may lead to the fact that the strategic goal of improving the level of safety and increasing the orders package by 20% will not be achieved (a high rate does not allow the organization to obtain accreditation and participate in large tenders due to the occurrence of penalties, reducing the image of the organization) (see table).
This approach will allow the management of the organization to start managing the implementation of the strategy in advance, considering it not only as a general concept of the enterprise development but also as a specific project.
The transition to Industry 4.0 will inevitably require companies to introduce fundamentally new management tools and methodologies. The creation and implementation of a methodology that integrates the concept of building and implementing a system of balanced performance indicators and the concept of building and implementing a risk and opportunities management system for large enterprises are currently extremely relevant and in demand. Such an integrated methodology can significantly improve the quality of management decisions of strategic, tactical and operational nature.
The authors declare that there are no conflicts of interest present.