Companies set objectives that they strive to achieve to ensure success and that they perform well, even in a competitive industry. And these objectives may come from a financial perspective, internal process perspective, or customer perspective.
And while setting goals is vital to the organization’s success, however, determining how well the enterprise is doing relative to the objective is just as important as it determines the sustainability of the company’s business model. It is also crucial for an organization to establish performance management metrics that are specific and measurable since these will enable them to:
- monitor activities and assess the company’s progress
- provide accurate information that managers can use to make sound business decisions
- see on what aspect (be it a product, department or something else) the organization is not doing well and focus on it
- spot potential problems and to act on it proactively
- align organizational and individual performance objectives
Furthermore, using performance management metrics will drive improvement and accountability by making performance transparent.
The business environment is challenging and competitive; hence, stagnancy will most likely lead the organization to unfavorable results. That is why companies must have performance management metrics.
Commonly, enterprises determine success by how well they are doing financially. Thus, the finance department must improve its credibility by committing to deliver accurate and high-quality reports. On the other hand, the senior and top-level management of the organization must be able to understand the KPIs effectively to make decisions and create strategies.
Furthermore, the financial KPIs that the company will use must be able to track various activities, from billing to collections and other processes. Then, financial management performance metrics will give insights on what specific aspects need improvement to address any weaknesses and develop a competitive advantage.
There are several helpful finance KPIs that enterprises may use such as:
- Accounts payable turnover
- Accounts receivable turnover
- Cash conversion cycle (CCC)
- Cycle time to perform periodic close
- Cycle time to resolve an invoice error
- Inventory Turnover, Budget Variance
- Finance Error Report
- Budget Creation Cycle Time, etc.
Managing Performance through Performance Canvas
Various solution providers offer enterprises financial software that assists organizations in managing their performance. And Performance Canvas Financials by DSPanel is currently one of the financial planning software that aims to aid organizations in achieving their objectives.
Performance Canvas offers companies a more convenient way to monitor their finance KPIs or performance management metrics. It has a sleek and modern-looking dashboard that shows an easy-to-understand presentation that displays performance management metrics and KPIs, that the organization has defined to assess whether it is performing and progressing on track to attain its business goals.
Moreover, Performance Canvas delivers full financial reporting and analysis, budgeting, forecasting, and consolidating capabilities regardless of your chosen combination of ERP system and line of business systems. Visit www.performancecanvas.com to learn more about this solution or email firstname.lastname@example.org.