When it comes to selecting your KPIs for the finance department, here’s what I consider to be most important. Be strategic: The metrics you select as KPIs should align with your overarching strategy at a corporate level. If your strategy is to be the price leader in your market, for exa...
For finance and insurance companies, tracking key performance indicators is non-negotiable. KPIs deliver irreplaceable visibility into the health of the business, progress towards strategic goals, competitive standing, and opportunities for growth. Leaders must carefully define and monitor the metrics most...
It’s worth taking a closer look at your KPIs and what they mean for your business 4. KPIs tend to originate in the finance department Businesses are profit-driven, of course, and this means many KPIs either originate within the finance department, or at the very least are reviewed there ...
In the same way, human resources, the finance team, legal, or any other department track and measure different KPIs. For this reason, key performance indicators for teams are one of the most unique. A sales team will be likely to track customer capture, average deal size or revenue targets...
Finance KPIs Working capital Operating cash flow Payroll headcount ratio Operations KPIs Labor utilization (employee ROI) Project schedule variance (missed deadlines) Rework (work that had to be done again) Choosing your KPIs Having numbers, graphs, and charts will give your team cred, but it's ...
For instance, a contract manager may be responsible for tracking the contract compliance rate, while the finance team oversees savings from contract negotiations. This clear allocation of responsibilities ensures that the right experts are focused on the specific KPIs they are best equipped to manage...
KPI overload can result in department heads so awash in data their eyes glaze over. They disengage from collaborating with the finance function, and data swamps can cause problems for the financial planning and analysis (FP&A) team, too. If every metric is important enough to earn the KPI la...
Keeping track of your conversion rates will give you a better understanding of which strategies work best for your company—and which do not. This will help increase your conversion rate, benefiting you financially.” Editor’s note: Need a quick update on your finance department? With Scorecard...
One of the first things firms look for is cost, which is likely to be of greatest importance to your finance department. Running your payroll costs you a certain amount of money.” Lindemoen continues, “It may be tough to evaluate your payroll costs without the most recent technologies, ...
Finance and Administration Common financial KPIs include: Budget vs actuals by department Revenue and expenditures trends Return on assets Accounts payable/receivable cycles Grant money awarded and disbursed Procurement cycle times These KPIs oversee budgets, costs, asset utilization and fiscal health. Publ...