METHODOLOGY FOR EVALUATING THE EFFECTIVENESS OF OPERATIONAL ACTIVITIES USING THE “EFFICIENCY BINOMIAL”

Abstract

The article presents a theoretical justification of the method of complex analysis of operational efficiency, which acts as an intensive factor ensuring the achievement and maximization of the target result of the activities of any commercial organization – profit. The author substantiates the expediency of applying a new approach to assessing the effectiveness of operational activities, called the “Efficiency Binomial”. The fundamental difference of this article is that to determine the level of profitability of a business, we use a complex approach, each component of which reflects the effectiveness of a specific subsystem of operational activity (and acts as either a cost-generating or profit-generating factor). This approach allows one to quickly identify the factors that have the maximum impact on the level of profitability of the business, and to conduct an in-depth study of them using the presented “content-analytical characteristics of effectiveness” and the author's universal methodology.