Institutional maturity of state authority bodies as a prerequisite for the successful implementation of KPI: author's assessment model and development directions for Ukraine

Abstract

The article focuses on implementing key performance indicators (KPIs) in Ukrainian public authorities amid wartime conditions and European integration. The starting point is a «pilot» legislative case—the draft amendments to the Customs Code on assessing the efficiency and effectiveness of customs authorities (first reading on 17 December 2025), which for the first time at the statutory level sets requirements for indicators and proposes specific KPIs. The article argues that the value of KPIs depends less on the precision of their wording than on an institution’s maturity: its ability to set objectives in the logic of policies and services, sustain the «planning–monitoring–adjustment» cycle through data and analytics, ensure process continuity, accountability, and organizational learning.The argument builds on a comparative analysis of OECD and World Bank approaches, a synthesis of maturity/capability models, and an assessment of the risks of formalization and»gaming the metrics». The author proposes a five-level model of institutional maturity for KPI implementation (from a formal-declarative level to adaptive, dynamic KPIs) that integrates results accountability, process discipline, data governance and analytics, digital integration, and a culture of learning and adaptability. A diagnostic methodology is developed across five domains (digital infrastructure, quality of management data, staff competencies; integration of KPIs into management cycles, sustainability of strategic planning), with evidence-gathering tools including surveys, interviews, document and regulatory analysis, and audits of processes and IT systems. A demonstrative application using examples from customs, the tax service, CNAPs, and regulatory bodies identifies typical barriers to progressing between levels (data culture, staffing shortages, a fragmented IT landscape, and gaps between strategy and budgeting). The article concludes that increasing institutional maturity is a prerequisite for valid KPIs and their real influence on decisions and resource allocation, when the model can serve as a diagnostic tool and as a basis for roadmaps to strengthen institutional capacity.