The government has decided how to assess the efficiency of state-owned companies
13 November 10:42
The Cabinet of Ministers of Ukraine has approved a procedure for assessing the achievement of goals by state-owned companies. This was reported by the Government portal, Komersant ukrainskyi informs.
The new evaluation procedure should primarily strengthen control over the performance of state-owned companies. It is based on the owner’s letter of expectations, which clearly states the goals and expected results of the company’s activities.
According to the new procedure, the assessment is based on an annual report submitted by state-owned companies to the governing entity – the Ministry of Economy, the relevant ministry or the Cabinet of Ministers, etc. The report should contain information on the achievement of the goals set out in the owner’s letter of expectations.
The assessment is based on a point system and takes into account the fulfillment of key performance indicators – financial results, implementation of strategic plans, etc. – that are clearly defined in the letter of expectations.
Based on the results of the assessment, the company’s activities may be recognized as effective, satisfactory or unsatisfactory.
The results of the assessment are taken into account when making management decisions, in particular, regarding the company’s management.
What are waiting lists?
Waiting lists are a new document in the planning system that introduces a law that improves corporate governance. It is a tool through which the government sets specific goals for companies – expectations for profitability, liquidity, and other indicators.
