Efficiency of Corporate Governance in the Context of Evaluation of Business Processes of Enterprise

Abstract

In the article, the authors substantiate the essence, approaches to evaluation and further improvement of business processes within the framework of corporate governance. A theoretical distinction has been made between the definitions of «corporate governance» and «corporate management», which are interrelated concepts, but they have different levels, orientation, and scope of application. Corporate governance establishes a common framework and strategy, while corporate management deals with specific governance functions and operational management. Corporate management focuses on managing resources, completing tasks and achieving the internal effective functioning of an organization. The article discloses, on the basis of the process approach, essence of business processes which are considered by the authors as the main units of governance of corporation activity, covering various functions, processes and tasks necessary for creating a product or providing a service, maintaining production, sales, customer service. Particular attention is paid to evaluating the efficiency of corporate governance business processes, allowing to determine how efficiently and productively they are implemented and identifying possible areas for improvement of this sphere. The authors detail the components of the mechanism for evaluating the efficiency of business processes: stages, indicators, evaluations, methods, and results of improvement. The sequence of stages is proposed as follows: definition of business processes to be evaluated; collection of data on business processes; analysis of the obtained data; identification of opportunities for improving business processes; implementation of measures as to improving business processes. The authors have proposed groups of indicators for evaluation, have identified prospects for improving business processes, these include: increasing the efficiency and productivity of business processes; improving the quality of products and services; cost reduction of all kinds; improving customer service; increasing competitiveness and reducing risks.

Keywords

• corporate governance
• corporate management
• business processes of enterprise
• evaluation of efficiency of business processes
• corporate business.