📊 How To “Own” KPIs, Measures and Levers In Your Business 📊
📊 How To “Own” KPIs, Measures and Levers In Your Business 📊
For any business to be successful, the next thing after strong leadership is the establishment of Key Performance Indicators (KPIs), measures, and levers (KMLs). 📊 KMLs need to be ingrained into the business, and employees must understand their importance to the success of their roles and the business. 💼
If your business’s only measure is net profit or the amount of money in the bank, it is doomed to fail! ❌
For entrepreneurs setting up new businesses, check out our “KPIs and Measures: The Ultimate Guide to Success” article here www.greddf.co.uk/media/2024-10-23-0600-9lsth 📖
Once you have your KMLs, and as your business grows, the next critical step is the introduction of a Financial Planning & Analysis (FP&A) function to own and manage the reporting of KMLs. 📈
Collaborating closely with various departments, FP&A helps set KML targets that are essential for business success and accurate forecasting. 📅
Why is this important?
🔄 Strategic Alignment 🔄 FP&A ensures that all business units are aligned with the company’s strategic goals. This alignment helps in setting realistic and achievable targets. For example, you cannot have your lead generation team aiming to generate more leads than the sales team can handle. 🎯
💪 Enhanced Employee Engagement 💪 When employees understand the KMLs they are working towards, it fosters a sense of ownership and motivation. Clear goals and regular feedback loops keep everyone engaged and focused. 👥
⚠️ Risk Mitigation⚠️ By continuously monitoring performance against set KMLs, FP&A can identify potential risks early and take proactive measures to mitigate them. This foresight helps in maintaining business stability and resilience. 🛡️
🔍 Independent Review 🔍 FP&A can remain impartial when it comes to KMLs. This avoids narrow focus, unethical behaviour, high-risk preferences, reduced intrinsic motivation, sandbagging, and dehumanising effects. 🧩
In essence, FP&A acts as the backbone of a company’s financial health, driving informed decision-making and fostering a culture of accountability and continuous improvement. 🏆
Getting advice about KMLs and FP&A from GREDDF will give your business the edge over your competition! 🥇
G R E D D F Has the Solution We Are Not Just Consultants 🌍 We Are Part Of Your Future
Ready to transform your business’s potential? Contact us today to arrange a 🆓 FREE 🆓 discovery call!
🌐 www.greddf.co.uk 📞 +44 7 44 44 89 2 89 📧 info@greddf.co.uk
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