CFO Plus: Five Important Steps for Effective Growth

Step 2: Key Performance Indicator (KPI) Identification and Monitoring System Development

During this process we will work with you and your team to capture your company's Cycle of Customer Interaction to identify the Key Performance Indicators that are most critical to your success. We will then establish a baseline of financial and non-financial performance indicators relating to your current scenario. This baseline will serve as a benchmark against which all future progress will be measured.

What it comes down to is this. . . "What You Can Measure, You Can Manage." By identifying and monitoring the activities in your business that have a direct impact on your profitability you'll be in a position to reach your goals in a much more controlled and targeted way.

This exercise is designed to identify specific critical indicators, both from your customer's perspective and operationally, to let you know exactly where your business stands at any given point in time.

This "expert" feedback system will keep you informed about the performance of your company on a real-time basis. Knowing and monitoring these Key Performance Indicators in your business will also give you the opportunity to improve the outcome while the "game" is still being played on a daily, weekly, or even hourly basis.

This information also gives immediate feedback to the team about their performance and how they impact the overall profitability of the company. This is a critical step when developing incentive programs for team-wide process improvement.

Amazingly, we have found, "that which gets managed, gets improved," automatically, when people have meaningful feedback about their performance.

On to Step 3: Financial Literacy Training

Back to Step 1: Comprehensive Analysis and Planning