The author considers experience of management by objectives implementation based on key performance indicators in regional governance. In the article result reports of regional administrations taken from open sources are evaluated. The author pays special attention to the most topical methodological aspects of key indicators application – cluster policy of regional development and regional competitiveness. He proves that balanced key performance indicators system integrated in regional strategy allows active decision making in sectors and actions which requires additional attention of regional administration. In conclusion the author proposes recommendations on possible improvements of the methodology.