Tetyana Nagornyak

Implementing performance management systems, including the KPI (Key Performance Indicators) system, at the university level faces many difficulties. The study aims to determine the problems of formation and implementation of the system of KPIs at the HEIs (higher education institutions) level based on the case study. Methodologically the study is based on the analysis of the case of the KPI system implementation at Vasyl’ Stus Donetsk National University (Ukraine) using a 3-year project survey of managers and employees of structural units about self-analysis of deviations and perception of each performance indicator. The essential subjective factor – irrational participants’ behavior – is demonstrated, reflected in their resistance, fear, and lack of acceptance of innovations in assessment processes, which needs to delineate tools for effective KPI system implementation (reduction of its negative influence and growth of the personnel loyalty). The main organizational obstacles that reduce such a measurement system’s efficiency are incomprehensibility, difficulty of evaluation, non-influence or independency of indicators from the efforts of respondents, poor communication, and motivation to achieve them. The analysis results allowed providing the recommendations that could contribute to the formation of reflexive and active management culture in the strategic management system and a culture of productive dialogue through vertically and horizontally management interaction.