Performance Management Metrics and KPIs

All too often you hear senior managers say “If you can´t measure it, you can´t control it.” This is why in most organizations, almost everything gets measured.

There is continued pressure for each individual and for the organization as a whole to attain their goals, to improve the way they work, and to ensure that everyone´s contributions are directed towards the organization´s overall goal.

Performance Management and Key Performance Indicators(KPIs) are widely used in order to track, monitor, evaluate, and even reward individual and organizational performances.

In the last decade or so, finance departments of all organizations have felt the increased pressure to perform especially as the role of the CFOs and the finance departments as a whole has seen significant changes.

Finance KPIs and metrics are seen as important indicators of how well the finance department is managing its performance and achieving its targets.

In the olden days, performance management appraisal or performance evaluations done by managers once a year used to be sufficient in determining how well a specific employee is working or applying her skills to further the organization´s goals. However, in these types of employee evaluations, it is hard to truly gauge whether or not a  specific employee is doing the right thing.

While it is easy to say an employee is hard working, if he or she is not doing tasks that add real value to the company, it is all but futile.

This is precisely why performance management metrics and KPIs have risen in the world of finance.

Using performance management metrics or finance KPIs give managers that quantifiable measure that paints a clear picture of how well an individual and how well the department or organization is attaining its targets.

A clear illustration of the importance of finance KPIs within the finance department is this: If the finance department wants to enhance their credibility through delivery of high quality reports and plans to the board or senior management, some good examples of finance KPIs would be Finance Report Error KPI, Budget variance KPI or Budget Cycle time KPI.

It is important to note that the use of performance management metrics and finance KPIs must be carefully thought out because measuring unnecessary or inappropriate KPIs would just be a waste of time and will be counterproductive for the finance department.

Choosing the correct finance KPIs and finance metrics is key and this is where the dialogue between managers and their employees become important. They need to define their goals and their KPIs together.

Below are a few examples of the most commonly measured finance KPIs and performance management metrics as of 2017.

Finance KPI and Performance Management Metrics examples:

Accounting costs

Accounts payable turnover

Accounts receivable turnover

Asset turnover rate

Average sum deposited in new deposit accounts

Average value of past due loans

Budget Variance

Budget Creation Cycle time

Cash conversion cycle (CCC)

Cash dividends paid

Cash flow return on investments (CFROI)

Common stock equity

Cost of goods sold (COGS)

Cost per hour per lawyer (in-house)

Creditor days

Cumulative annual growth rate (CAGR)

Current Ratio

Customer Satisfaction

Cycle time to perform periodic close

Cycle time to resolve an invoice error

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Days payable

Debt-to-asset ratio

Debt to Equity Ratio

Debtor days

Direct costs

Earnings per share (EPS)



Economic value added

Enterprise value/takeover value

Expense Management

Fixed costs

Finance Error Report

Gross margin on managed assets

Gross profit

Gross profit margin

Indirect costs

Interest expense

Interest on net worth

Internal Audit Cycle time

Inventory Turnover

Invoicing processing costs

Labor and management cost

Labor and management earnings

Legal staff per size of revenue

Line items in Budget

Long-term debt

Marginal costs

Market share

Net change in cash

Net interest margin

Net new money

Net profit

Net profit margin

Number of budget deviations

Number of invoices outstanding

Number of past due loans

Operating Cash flow

Operating income

Operating leverage

Operating margin

Operating profit margin

Other current liabilities

Other noncurrent liabilities

Payroll Headcount Ratio

Payment Error Rate

Percentage of accuracy of periodic financial reports

Percentage of effectiveness in payables management

Percentage of budget deviation relative to total budget

Percentage of electronic invoices

Percentage of financial reports issued on time

Percentage of invoices requiring special payment

Percentage of invoices under query

Percentage of legal budget spent outside

Percentage of low-value invoices

Percentage of payable invoices without purchase order

Preferred stock equity

Product turnover ratio


Profit loss due to theft

Profit margin

Profit per product

Quick ratio/Acid Test

Rate of return on assets

Return on equity

Return on assets

Return on capital employed (ROCE)

Return on investment (ROI)

Return to equity


Revenue per employee

Sales per share

Same store sales

Selling general and administrative (SG&A) expenses

Share price

Shares outstanding

Sharpe ratio

Short-term debt

Systems cost of payroll process as a percentage of total payroll cost

Tier 1 capital

Total assets

Total current liabilities

Total equity

Total legal spending as a percentage of revenue

Total liabilities

Total of uninvested funds

Total quantity of new deposit accounts

Total sum deposited in new deposit accounts

Total value of past due loans

Variable costs

Working Capital

Managing Performance through Performance Canvas

Performance Canvas Financials by DSPanel is one of today´s most modern and reliable Corporate Performance Management and Business Intelligence Platform.

Performance Canvas makes it easier for your company to track finance KPIs or performance management metrics through its state of the art dash boarding, score carding, and metrics management features.

On top of that it delivers full financial reporting and analysis, budgeting, forecasting, and consolidating capabilities regardless of your chosen combination of ERP system and line of business systems.

To see this solution in action, visit or email to schedule a free online demo for you and your finance team.


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About DSPanel
DSPanel offers cutting edge technology platform for business analytics, planning, and visualization. DSPanel designs, builds, and operates with the end users in mind. Performance Canvas was created by DSPanel to answer the unarticulated needs of the market not addressed by previous available solutions. With Performance Canvas, information is transformed into valuable business insights for the business executives to utilize in their decision-making process. DSPanel currently has over 2500 organizations deploying their solutions.



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