Long-Term Development Program is a key tool in the vertical system of strategic planning in companies with State participation. The RusHydro Group Long-Term Development Program for the 2016-2020 (hereinafter referred to as LDP) is aimed at improving the Group’s efficiency and upgrading the governance system by the Russian Federation, the major shareholder of the Company.
The LDP7 for 2016-2020 is drawn up in accordance with the instructions of the President of the Russian Federation8 and the Government of the Russian Federation9 and approved by the decision of the Board of Directors of PJSC RusHydro. LDP is formed on the basis the Development Strategy of RusHydro Group for the period until 2020 with a perspective for up to 2025, the consolidated RusHydro Group Business Plan and the program documents of RusHydro Group (PJSC RusHydro and PJSC RAO ES of the East): production programs, investment programs, innovative development programs.
The LDP defines the main principles and directions that ensure an effective development of RusHydro Group. The document contains proposals to improve the PJSC RusHydro’s operating and investment efficiency, and competitiveness of PJSC RAO ES of East Holding. The LDP also includes measures to enhance corporate governance management, human resources management, the systems of antiterrorist, information and economic security and development of international activities. Moreover, the LDP contains risk analysis of measures implementation, key performance indicators and the methodology for calculating and evaluating KPIs of the LDP.
The goals of the LDP coincide with the goals of the Development Strategy of RusHydro Group for the period until 2020 with a perspective for up to 2025. The key priority areas of development and goals are:
- development and improvement of the management efficiency in production and technological complexes;
- investment policy and change of the approaches to an investment program development;
- enhancement of the effectiveness of the Far East asset management system and development of the power system in the Far East;
- increase in operational efficiency and transparency of activities;
- development of the human potential.
Control of the LDP implementation is carried out in accordance with the Standard for control of the LDP implementation10 and the Technical task for conducting an audit of the LDP implementation11. The functional specification for the program control is prepared taking into account the approximate functional specification developed by the Ministry of Economic Development of Russia. Based on this standard, since 2016, the independent auditor has been checking the program implementation on an annual basis.
Key performance indicators
The system of key performance indicators (hereinafter referred to as KPIs) of PJSC RusHydro is aimed at enhancement of efficiency of the Company’s performance and achievement of the goals set by the shareholder, and includes the indicators in accordance with the LDP and Business Plan for the year of 2016.
The KPIs of PJSC RusHydro includes seven annual KPIs: four financial and economic indicators, two sectoral ones and an integrated KPI for innovation (Read more
in 3.3.1. Innovative development management). In 2016, all KPIs were fulfilled, except one – «Fulfilling capacity commissioning timetable and plan for finance and disbursement».
KPIs of the LDP of RusHydro Group include 10 indicators, among them there is prevention of accidents at work and maximum number of accidents in RusHydro Group, purchase share from small- and medium-sized business entities.
Read more about the key performance indicators in RusHydro Group, PJSC RusHydro and RAO ES of the East in the 2016 Annual Report of PJSC RusHydro.