A guide for Business and CFO Department planning Developing Your KPIs and Measuring Your AFT at Professional Service Organizations A guide for Business and CFO Department planning

Tools to Prepare for 20XX Key Performance Indicators for PSOs Accounting Finance Treasury (AFT) Assessment

KPI Framework Customer Not Your Budget or Your Industry Leading Indicators not Lagging Indicators Do you base KPIs off your Budget or Industry Standards Should be related to Customer Success

KPI Quadrants

Example – Utilization More Customers – Lower Utilization All Revenue based on Billable Hours – Crash!!! Sustainability? 1 Client is a high risk strategy The program links Your financials – specifically the P&L or income statement With… The company and industry knowledge of your executive team

Example – Billing Rate Very Efficient? Erratic Billing? Poor Estimates? Resources not Allocated Properly? The program links Your financials – specifically the P&L or income statement With… The company and industry knowledge of your executive team

KPI Summary

Accounting Finance Treasury Leadership (AFTL) Assessment What role are the accounting, finance and treasury departments playing in your business? Are they contributing to, or hindering your success? The AFTL assessment will identify where and how you can use these departments to increase the value of your business. Leading Indicators not Lagging Indicators Do you base KPIs off your Budget or Industry Standards Should be related to Customer Success

What the AFTL Assessment Measures: The CFO’s Primary Responsibilities 5. Growth Capabilities: Is the AFT department growth enhancing, growth limiting or neither in terms of growing the company’s earnings and general financial stability 6. Governance: Is the company well controlled with good governance practices for its size and business scope? 7. Teamwork: Does the AFT department work well with and support the activities of other departments? 8. Leadership: Does the AFT department provide leadership to the overall business organization?

Mini AFTL Assessment Questions Below is the URL to the AFTL Assessment: AFTL Assessment Tool Fill out the 8 question Assess- ment to get a snapshot of how your AFT Departments contribute to the success of your business.

Scoring After you fill out the Assessment Your Score will show up to the left of the box summarizing the state of your AFTL (Accounting, Finance, Treasury and Leadership) team. Interpreting the Scores: The Total Score provides an overall indication of how your AFTL areas are contributing to the business. Share the assessment with your Executive team to learn how they perceive the AFTL. AFT Categories with a score of 1 or 2 require immediate attention. A Total Score less than 19 indicates business threatening issues exist today A Total Score less that 26 indicates significant business improvement opportunities exist

Follow up Plan Review you scores for all 8 sections and discuss the results with your team Develop key improvement objectives (1-3) for each section which you scored “3” or less Implementation plan Budget Timeline 6 months after implementation retake the Assessment to monitor progress