Your KPI dashboard is your tool to measure results and make decisions about the future. Monitoring results drive the company toward its goals.
All the work of picking metrics and setting targets is a waste of time if you don’t measure your performance to make decisions. Metrics have little value as information about the past but have great value as guidance for the future.
Your KPI dashboard is your tool to measure results and make decisions about the future.
The first benefit is efficient communication. Your dashboard is a simple way to convey the criteria of success for your company. It’s your strategy and business plan boiled down to the essentials. You, your staff, and stakeholders can always refer to the dashboard for a quick update and reminder of what you need to do to achieve your goals.
Related to this is using the dashboard as a reminder of what’s important. Reviewing the dashboard is a chance to pause and refocus. A dashboard provides accountability. The dashboard identifies the accountable person for a target.
A dashboard provides context to evaluate performance. It shows how current performance compares to targeted performance. It may also show historical trends for the metrics. Actions may be needed to turn around a negative trend or capitalize on a positive trend.
Dashboards are powerful motivation tools. Monitoring results drives the company towards its goals. Everyone knows whether they are meeting goals or whether more needs to be done.
I wish you the improved performance that metrics can provide. I wish you well.
- Rob Stephens
CFO Perspective Resources
Get all the CFO Perspective resources with a FAST (Finance and Strategy Toolkit) membership.