Scientific Center of Innovative Research, Relationship between public administration and business entities management-2022

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INDICATORS OF EFFECTIVENESS OF PRIVATE ENTERPRISES IN NON-FORMAL ADULT EDUCATION IN CONDITIONS OF UNCERTAINLY
Olga Nakonechna


Abstract


The successful development of the enterprise consists in the effectiveness of economic activity, which is influenced by both internal and external factors. By 2020, when the COVID-19 pandemic began, the company's strategic development could predicted. The state of the world order was defined as SPOD, i.e.: steady – stable, permanent, uniform, stable; predictable – predictable, expected; ordinary – simple, constant; definite – determined, regulated, fixed. The war of Russia against Ukraine, the introduction of sanctions against the aggressor country and its international isolation, the rapid change of geopolitical centers of influence led to the instability of the world order and contributed to the emergence of a new concept of the world order named BANI. (Chaliuk Yuliia, 2022) This term was first proposed by Jamais Cascio, a professor of the University of California in his article Facing the Age of Chaos in 2020.( Jamais Cascio, 2020). The new reality forced Ukrainian private enterprises to adapt to conditions of uncertainty according to the BANI concept, which means: B – Brittle, A – Anxious, N – Nonlinear, I – Incomprehensible. (Think Insights, 2022)

A private enterprise is an institution of non-formal adult education is a subject of entrepreneurial activity, which is carried out under the influence of macro- and micro environmental factors, and has its own life cycle. To manage the effectiveness of such an enterprise, indicators should be applied that take into account the goals of the institution in a specific period. Indicators of effectiveness of a private enterprise can have quantitative as well as qualitative characteristics, standardized in accordance with the profile and goals of the activity. Quantitative characteristics indicate how pronounced this or that feature is and, as a rule, have a numerical indicator. Qualitative characteristics demonstrate the presence of certain traits and can be provided as a textual description.

Indicators of the effectiveness of work with clients demonstrate how a private non-formal adult education institution and the quality of its services are evaluated by clients, as well as whether they are ready to get training here in conditions of uncertainty.

-         Net Promoter Score (NPS) is a metric that reflects the level of satisfaction of students of a private institution of non-formal adult education with the quality of educational services, the fullness of educational programs, teaching methods, pricing policy and the opportunity to apply the knowledge gained in practice (Nakonechna Olga, Liashenko Oleksandra , 2022).

-         Client Index (CI) is a metric of level of invoices issued and paid. It indicates the effectiveness of communication of sales staff with the clients. The main goal of management is to train staff to increase the value of this indicator.

-       Test Index (TI) means changes in the knowledge of the target audience (test result,%). This metric demonstrates the level of learning by students and the quality of educational services.

Indicators of the effectiveness of internal economic processes reflect how the processes can provide the institution with significant advantages over competitors in conditions of uncertainty

-          The level of technological support of the educational process.

-          Security provision of the educational process.

-          Mobility of provision of educational services.

-          Quality of management.

-          Indicators of business activity.

-          Correlation between the rate of growth of sales of educational services in the institution and the rate of growth of sales of such services in the entire industry.

Indicators of the effectiveness of investments in innovation and personnel training demonstrate how the status of the enterprise can be improved in conditions of war, pandemic, etc. Enterprises that do not innovate and rely only on "proven" methods of work often find themselves behind the competition and cannot adapt quickly enough to changes in their environment. (Think Insights, 2022) A level of investments in innovation and staff training is indicator of a company's "anti-anxiety", "anti-brittle" and "anti-nonlinearity" in the BANI world.

-            Index of effectiveness of personnel training (ROI ed.). Jack Phillips' methodology allows determining implicit benefits. Implicit benefits can be considered an increase in team spirit, job satisfaction, reduction of conflicts, losses from downtime, etc. (Butusevich A., 2015)

-       The level of cooperation culture (% of classes canceled due to misunderstanding between staff) is a metric that helps to understand the level of effectiveness of communication between staff and the cause of reputational risks.

-       Return on investment (ROI inv.) is an indicator of investment effectiveness. In terms of BANI, it is a demonstration of the company's investment flexibility and readiness to quickly respond to new challenges in the world around us.

-       The non-parametric assessment of Mac Gi is an indicator of the effectiveness and efficiency of training to reduce the cost of business processes (Butusevich A., 2015)

Indicators of economic effectiveness of a private enterprise of non-formal adult education are income, expenses and other generally accepted financial indicators. In addition, it is important to use risk assessment and operating profit (EBIT) to make management decisions.

The using indicators of effectiveness to evaluate the company's performance, it is important to maintain a balance between all indicators. This balanced system of indicators provides the owner of the enterprise (private entrepreneur) with the opportunity to make quickly decisions, use fast-moving external factors during risk assessment, and ultimately allows the institution to remain competitive even in conditions of uncertainty.

 


Keywords


effectiveness; indicator of effectiveness; BANI; private entreprise; non-formal education; adult education, BSC

References


  1. Chaliuk Yuliia, Global Socio-Economic Development in Vuca, Spod, Dest and Bani World (May 7, 2022) from https://ssrn.com/abstract=4102455
  2. Jamais Cascio, Facing the Age of Chaos, 29.04.2020 https://medium.com/@cascio/facing-the-age-of-chaos-b00687b1f51d
  3. Think Insights, BANI – How to make sense of a chaotic world? November 5, 2022, retrieved from https://thinkinsights.net/leadership/bani/
  4. Nakonechna Olga, Liashenko Oleksandra A balanced system of indicators as the basis of management of non-formal adult education institutions/  Modern organization management: origins, realities and prospects for development in 2022 Conference/ April 26, 2022, from https://conf.krok.edu.ua/MMO/MMO-2022/paper/view/1159
  5. Butusevych Andriy, Evaluation of the efficiency of the training /Personnel Consultant, PERSONNEL MANAGEMENT No. 23 (107) 2015 from https://kadrhelp.com.ua/ocinka-efektyvnosti-provedenogo-navchannya