Performance Management

Key Performance Indicators System

...we try to make our offers more attractive by flexible price approaches and customer-friendly supply logistics...

Direction General of JSC "TECHSNABEXPORT"
Alexey A. Grigoriev
RIA Novosti, November 2011

The system of key performance indicators (kpi) is a modern tool for managing the performance of JSC "TECHSNABEXPORT", its affiliates and subsidiaries.

This system was introduced in 2009, and has been successfully operating in JSC "TECHSNABEXPORT". The key principle of the system is segmentation of strategic objectives of the State Atomic Energy Corporation ROSATOM into financial & economic, production, social and other performance indicators for enterprises and individual objectives for their managers for a one year period.

In order to implement a number of cross-functional industrial projects using the unified methodology, the State Atomic Energy Corporation ROSATOM incorporates general industrial indicators of functional activities into the KPI maps of the managers of the enterprises' functional blocks (economics & finance, accounting, corporate and legal work, HR, procurement, IT, etc.).

The following financial & economic and production KPIs were adopted in JSC "TECHSNABEXPORT" in the reporting year:

  • EBITDA;
  • fixed costs;
  • portfolio of export orders for a 10-year period (including export operations of Russian enterprises, excluding the HEU-LEU Agreement);
  • revenue from foreign operations (including export operations of Russian enterprises, excluding the HEU-LEU Agreement).

In particular the following individual objectives have been set for the Company's managers in the reporting period:

  • development of the transport and logistics complex "East" (TLC "East");
  • development of the transport and logistics complex "West" (TLC "West");
  • implementation of the information technology transformation programme;
  • improvement of the procurement efficiency.

In 2011 the KPI system was cascaded to the level of the Company's department directors and deputy directors of subsidiaries and affiliates.