Hierarchy of Goals

Achievement of the goals is being planned in: years, quarters, months, weeks, depending on whether the goal belongs to the category of strategy or operations. During the planning a strategic goal is decomposed into lower level sub-goals that can still be strategic, and then these are further decomposed into operational objectives. In that way they form a hierarchy of goals. Goals at the lowest levels are brought into relation with KPI through which they measure their realization. Goals at higher levels are not associated with KPI, but the degree of their realization is determined automatically based on the degree of realization of their objectives. The software provides algorithms for the automation and these algorithms are quite complex because we have to often compare and summarize "Apples and Oranges."

Besides a hierarchy of goals, there is a hierarchy of organizational units within the company to bring the goals to realization. The software enables monitoring of the operational efficiency of the company and each organizational unit below, if necessary. At each organizational level manager monitors the achievement of goals through the control panel shown in Figures 4a, 4b, 4c. This means that from the CEO to the lowest manager method of monitoring the efficiency of operation is standard (follows the business over the same control panel) only the scope of monitoring related to the competence of managers. CEO monitors operation of the entire company and the subordinate manager only operation of his or hers organizational units.

Figure 6. An example of graphic monitoring of goal realization at lower levels of the hierarchy of goals.