Every business owner plans ahead and sets objectives for their organization which are in line with a particular vision. In order to achieve said goals, you’d also need an actionable business plan and strategies that are right for bringing about the desired results.
But unless you’re somehow magically able to look into the unforeseeable future, there’s no knowing if these plans of action really work. This is why as a business owner, it’s never a good idea to wait that long to gauge your success. Instead, focus on everything that’s in-between and look at your company’s performance in real-time.
Is your team’s progress up to the mark? What about profits? Do they balance out your company’s losses? For various aspects of your business operations, quantitative metrics are needed for you to tell exactly how well your business has been doing so far. These metrics are widely known as key performance indicators.
What Are Key Performance Indicators?
KPIs are measurements which help your team align their performance with long-term business goals. These metrics are definable and also highlight when your business has achieved a milestone on top of evaluating daily, weekly, and monthly performance stats. Since there are endless KPIs, we’re going to talk about the finance-related KPIs in specific to narrow down the subject matter.
More often than not, the data produced when you measure your business’s financial key performance indicators can be quite extensive and difficult to keep track of. To help make it readable, companies then use a useful business tool called a KPI scorecard.
What are Financial KPI Scorecards?
Financial KPI scorecards are, in a way, watered-down versions of financial dashboards and reporting templates. These scorecards feature statistical records in a simpler manner than executive dashboards, often also featuring graphs and charts which help you visualize the data at hand.
A finance scorecard can be used to measure financial key performance indicators like your business’s profitability, expenses, revenue, and cash flow.
How Scorecards Help Analyze KPIs
- Scorecards not only establish your whole team’s performance targets but also help set them on an individual member basis.
- They also let you know if the financial goals and strategies you previously set were workable or not by letting you see results.
- Scorecards help organize data in a way it’s easily communicable to your entire team—also making the whole process interactive and easy to follow using pictorials and visual representations.
- The performance outcomes you see on the scorecard can act as feedback, giving your team a learning opportunity where they work on their areas of improvement.
Modern business dashboards have blurred lines with scoreboards, and a mix of the two approaches has shown to be extremely viable. After all, both tools are used to measure the same thing: your company’s KPI metrics. For professional financial dashboard templates, connect with us at Biz Infograph in Toronto. All of our professionally designed slides and dashboards are both practical and visually dynamic—giving you the key to delivering powerful business presentations.