Theoretical Foundations of the Performance of Industrial Enterprises with Consideration of Potential: The Essence, Meaning, Indicators, Approaches to Management

Abstract

The purpose of the article is to update the theoretical and methodological issues regarding the performance of industrial enterprises, taking into consideration their potentials, and to highlight some aspects of improving this performance with the proposed approach to its total assessment, as well as the potentials of enterprises with the help of certain indicators for their effective management with the formulation of appropriate definitions. The disclosure of the essence of the performance of enterprises on the basis of the updated paradigm through the prism of potentials, as well as the identification of suitable approaches to the evaluation of this performance on the basis of its components (which constitutes the scientific novelty of the presented publication), is subordinated to the general logic and structure of the material presented in it. The relevance of questions regarding the performance of various processes (economic, social, environmental, etc.) that take place in enterprises and the potential of which allows to re-explain, evaluate, measure, predict individual parameters of the dynamics of functioning and development of enterprises as complex, purposeful systems, is pointed out. Also pointed out is the appropriateness of approaches to calculating the indicators of the components of performance of activity/process with the use of the potential of enterprises in the context of the paradigm of «knowledge – measurement – evaluation – management» of performance. To assess the management situation regarding the performance of the activity/process, taking into consideration the potential and to determine the effectiveness of management, a model for assessing the components of performance is proposed, taking into account the potential, which is based on the values of changes in the relevant indicators. The algorithm that can be a guiding means for management specialists (experts) during performance management, considering the identified potentials and indicating the role of SEE-management, is outlined.

Keywords

• effectiveness
• potential
• management
• activity