Developing KPIs for SOEs: Peer Learning on Performance Metrics for State-Owned Enterprises in Europe and Central Asia
State-Owned Enterprises (SOEs) are critical levers for public investment and service delivery. Yet, ensuring they deliver on both commercial and public mandates requires tools that can clearly translate ownership goals into measurable outcomes. At the heart of this challenge are Key Performance Indicators (KPIs).
To address this, the World Bank on 17 June convened a peer-to-peer learning session titled “Setting Targets: Developing KPIs for SOEs – International Experiences and Lessons for ECA.” The event brought together around 45 SOE policymakers, practitioners, and international experts to discuss how strategic KPI systems can be designed to enhance performance, transparency, and accountability in SOEs. Participants included official responsible for SOE reforms from Ukraine, BiH, Montenegro, Croatia, Austria, Kazakhstan, Serbia, Korea, Austria and others. The session was the first event hosted under the recently established Community of Practice on SOE Governance for the Western Balkans and Eastern Partnership countries, supported under the Vienna Development Knowledge Center and the EAASURE Program.
Diverse Experiences, Shared Challenges
In his opening remarks, Fabian Seiderer, Practice Manager at the World Bank, underscored that KPIs “translate policy priorities into corporate priorities,” adding that “SOEs are often catalysts for private investment and development—if we get governance right.” He cautioned, however, against “gaming” of indicators unless robust oversight mechanisms are in place.
Aakriti Chandihok, Director at Austria’s ÖBAG, shared how KPIs in Austria’s listed and non-listed SOEs are structured around three pillars: value creation for portfolio companies, long-term shareholder returns, and broader public value for Austria as a business location. She stressed that KPIs must be tied to a company’s unique strategy, but also reflect public expectations: “We don’t want dividends that leverage the company—we want sustainable returns that preserve future value.”
Kazakhstan’s Timur Onzhanov, Deputy Chairman of Baiterek Holding, illustrated how cascading KPIs are derived from Kazakhstan’s national development strategies down to the enterprise level, aligned with sectors such as housing, agriculture, and SME development. He emphasized that KPIs are essential not just for performance, but for building trust with international investors and financial partners.Yoon Q. Lee, Visiting Fellow from Korea’s Institute of Public Finance, presented Korea’s mature and institutionalized approach to SOE KPIs. The system, embedded in law, combines standardized national guidelines with SOE-specific targets, and links KPI evaluations to financial incentives and sanctions. “SOEs have strong incentives to comply, because performance scores are tied directly to bonus payments and CEO tenure,” he noted.
Reformers Reflect
Discussants from Croatia and Moldova shared how they are designing new KPI systems as part of broader SOE governance reforms. Leon Žulj, Director at Croatia’s Ministry of Finance, emphasized the need to balance “financial efficiency with fulfillment of public missions.” Maxim Sârbu, from Moldova’s Public Property Agency, raised questions on data collection and accountability mechanisms when targets are missed. In closing remarks, Minas Trubljanin, Director General at Montenegro’s Ministry of Finance, reflected on key takeaways: “In all the models we saw, KPIs are not peripheral—they are central to how state ownership is exercised. But it’s equally clear that information systems and institutional capacity must keep pace.”
Looking Ahead
This event marked the launch of the SOE Governance Community of Practice in ECA and fed into the World Bank’s Vienna Development Knowledge Center agenda. Future sessions will continue to build a peer network of policymakers committed to making SOEs more transparent, efficient, and accountable.