Improvement of organizational and financial performance of a modern enterprise in the context of process management

Abstract

Solving the urgent tasks of neoindustrialization and digitalizaion of the economy calls for the process approach based improvement of the management for the Russian enterprises. This process approach focuses on the total customer’s needs satisfaction. The purpose of the research is to apply the process approach to reveal the improvement possibilities for the organizational and financial performance of a modern enterprise. Methodologically, the process approach helps construct the key business processes of an enterprise as value chains from marketing to sales and as a sales revenue increase which contributes into the economic result. The scientific novelty of the study is characterized by the following findings: 1) the study has developed a universally applicable business processes matrix which satisfies customer’s needs and efficiently combines the enterprise’s operational and innovative performance; this improves enterprise’s organizational and financial figures; 2) a labor efficiency increase and higher performance of an enterprise are evidenced by better project coordination and duties allocation for all owners of the business processes in an enterprise; 3) some theoretical aspects of the enterprise’s economic growth are analyzed to justify higher figures of its performance which are the sales growth rates for products/services, average headcount, average monthly salary, labor efficiency, a share of high performance jobs, and a market share of an enterprise; 4) regressional dependencies of efficiency indicators are developed for the organizational and financial performance of an enterprise in the context of the figures for the social and economic development of a region. It is shown that these efficiency indicators are determined by the output indicators of the business processes in the enterprise’s departments which are involved into the process management. The author’s approach to the process management based improvement of the enterprise’s organizational and financial performance is verified with the materials received from APZ ROTOR, JSC, a large instrument-making enterprise in Altai Territory. The introduction of business processes matrix will help characterize planning and finance performance of the enterprise and set the budgets of the departments involved. Forecasting results of the research show this can increase the efficiency indicators of APZ ROTOR, JSC, its organizational and financial performance and improve the enterprise’s management systems on the whole. Further research is seen to be in the field of developing theoretical and practical aspects of process management for a modern enterprise in the context of neoindustrialization and digitalization of economy.

Keywords

business processes, process management, project approach, reengineering of business processes, project teams, process owners, organizational and financial performance, output indicators for business processes.

For citation

Dronova O.B. Improvement of organizational and financial performance of a modern enterprise in the context  of process management. Perm University Herald. Economy, 2021, vol. 16, no. 4, pp. 369–388.  DOI 10.17072/1994-9960-2021-4-369-388

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