Developing Your KPIs and Measuring Your AFT 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
Control Group Scoring
Example – Service Company Gap Analysis