Research on Strategic Performance Evaluation of Mongolian State-Owned Mining Enterprises Based on the Integration of KPI and OKR

Abstract

Given the two constraints of resource endowment and fluctuation in the external market, there are many kinds of strategic goals for Mongolian state-owned mining enterprises, such as resource utilisation, extraction efficiency, cost control and risk avoidance. The traditional performance appraisal tools have some defects in the mining industry; KPIs are too inflexible, and Balanced Scorecards and Management by Objectives do not consider the differences in resource endowment and uncontrollable production circumstances. In light of the combination of KPIs and OKRs, this paper will first explore the company's strategic goals, then examine how far the old system can be extended, and finally study the theoretical intersection of the two systems. Therefore, the two-track integrated evaluation system put forward here includes the extraction of indicators, embedding of OKRs, allocation of weights and arrangement of cycles, as well as analysis of the operating mechanisms for such systems, such as information transmission, performance feedback and flexible adjustment. Research has shown that KPIs are for maintaining the normal operation of things, and OKRs are used to achieve extraordinary results; together, they can achieve good results through complementary cycles and continuous adjustment of goals. The evaluation system should be connected to the outside world, change according to changes in the external environment, and be able to handle the high complexity and uncertainty of mining production.