Developing a System for Evaluating the Business Processes’ Effectiveness Based on the SMART Approach

Abstract

Aggressive and volatile business environment determines the need to study and use innovative and progressive management paradigms that are able to ensure the competitiveness of enterprises in target markets. The subject of the study is a set of theoretical and applied principles for evaluating the effectiveness of economic entity’s business processes based on a system of certain indicators. The purpose of the study is to develop a methodology for evaluating the effectiveness of enterprise’s business processes based on the SMART approach. The authors present their vision of the groups of indicators that can be used to determine the effectiveness of business processes. The study uses a SMART approach to setting goals, which helps to correctly formulate the desired result and provides an understanding of the direction. The authors propose an approach to evaluating the business processes’ effectiveness based on six criteria: process efficiency, efficiency of providing the necessary resources, product cost, resource productivity, length of one technological cycle, adaptability of the process. Based on the synthesis of concepts such as the balanced scorecard, functional and cost analysis, and key success factors the authors create an original model for evaluating the effectiveness of business processes.