KPI Development & Dashboarding
Financial KPI development, dashboard development, and management are essential components to efficiently manage a successful organization. Tracking metrics of your business aids in understanding how efficient your business is running as well as what areas need to be adjusted. Regardless of the size of your business, identifying and managing key performance indicators, also known as KPIs, is crucial to building a sustainable growth model for your business.
There are a variety of methods utilized in approaching KPI tracking and dashboarding. Without the use of hard data measuring KPIs companies rely on intuition or guesses to gauge their overall performance. Key performance indicators are not just numbers in a report, they allow you to analyze the performance of your business to ensure you make not only the right decision, but the most informed. JS Morlu understands what it takes to complete accurate KPI development and dashboarding, providing your business with the tools needed to make more informed decisions.
What are Key Performance Indicators (KPI)?
A key performance indicator, or KPI, is a measure commonly used to track the performance of certain metrics in comparison to strategic goals. Key performance indicators are useful for businesses because they remove ambiguity from performance tracking by relying on a set of key indicators of high or low performance. Key performance indicators can usually be categorized into three groups: strategic, operational, and individual. Strategic KPIs are used to track specific strategies or future goals such as growth. Operational KPIs track the efficiency of specific company areas or departments such as operations or manufacturing. Individual KPIs are used to measure individual employee performance and provide managers with a tool for unbiased performance reports. Moreover, key performance indicators and financial dashboard development can also be useful to compare business metrics and performance to competitors in the same industry or sector.
KPI dashboarding and KPI development is about identifying key statistics or measurements in your business’s financial data. Once the measurements have been chosen, they can be displayed and supplied in a variety of methods. KPIs are commonly used for operational and department managers to track the performance of their sector. Advanced data presentation technology graphs and other visuals can be created to make it easier for managers to understand. In addition, KPI reports can be displayed on a dashboard and are often given to managers and decision-makers on a weekly, monthly, or some other incremented schedule.
What is a Financial KPI Dashboard?
Financial KPI dashboarding is a specific dashboard designed to track financial metrics pertinent to organizational goals or strategies. Financial KPI dashboards are often used by executives or board members to track the overall progress and growth of an organization. Dashboarding and data visual software allows dashboards and reports to be easily created and shared with end-users. Cloud computing software also allows dashboards to be sent or compared from anywhere in the world. Some common software used in the dashboarding process includes Tableau financial dashboards, Power Bi, Google Data Studio, Grafana, or Sage Intacct. Each program is designed to analyze data and create visuals to present key indicators of the data. JS Morlu has worked with each of these software programs, making us your go-to expert.
What KPIs Does JS Morlu Use?
The team at JS Morlu utilizes a wide variety of KPI metrics to dive deep into areas your business can improve. Selecting a wide range of KPIs allows you to address multiple aspects of your business’s operation and performance. Among the list of frequently calculated KPIs include:
- Net sales – The real revenue your business brings in. Gross sales and revenue numbers can tell an entirely different story compared to net sales because net sales deduct the cost of production or providing a service by the gross revenues. Net sales are widely utilized and are one of the key indicators of financial health.
- Basket size – Basket size calculates how much money your customers typically spend in a visit to your business. It also addresses how many items customers purchase each visit. The metric provides an average of both measures in a specific time period and allows for a measurement of the impact of advertisement campaigns, sales, adjustments to processes, or other information to guide decisions in the business.
- Sale dilution – This metric addresses returns, discounts and allowances, and revenues lost because of them. Analyzing the sale dilution rate gives insight on how to improve performance and eliminate efficiencies.
- Customer retention cost (CRC) and customer lifetime value (CLV) – Both are useful not only for brick-and-mortar locations, but for e-commerce stores as well. E-commerce allows for customer behaviors to be monitored and tracked, leading to large quantities of data being analyzed.
These are just a few of the KPIs that JS Morlu calculates on a regular basis. For a more in-depth description of the metrics we use to provide value to your business, reach out to a team member today.
Importance of Tracking KPIs
Key performance indicators and the use of accounting KPI dashboard development can be a critical tool for organizations. KPIs can track data from internal sources to measure efficiency in production or operations. KPIs can also track customer data to focus on per customer efficiency or customer satisfaction. Furthermore, accounting KPI development focuses on financial metrics and KPIs. KPIs tied to financials typically focus on gross margin, profit margin and revenue. Selecting the KPIs specific to your goals allows you to track key indicators relating to performance or inefficiencies in specific departments or during specific time periods.
To truly get the most out of your KPI tracking and KPI dashboards you must understand what each KPI means. Without an MBA, KPIs can be an overwhelming task to dive into, which is why the team at JS Morlu is so beneficial to have on your side. For example, if your organization is having delays in the shipping process, using a KPI, such as the average days late, can help address where the inefficiency is. Average days late can also be sorted by location of occurrence or time of occurrence to identify a region or time in the workweek where there may be supply chain inefficiencies. The high level of analysis needed to fully understand the data KPIs generate can be overwhelming without JS Morlu working alongside you.
Simply put, key performance indicators quantify and verify the performance of specific aspects of an organization. Using the correct combination of KPIs allows for the business to not only be evaluated on a departmental or a project basis, but as a whole. If your organization is looking to grow, managers and decision makers should be aware of KPIs and the meaning behind them through consultations with JS Morlu. The team at JS Morlu is knowledgeable on all aspects of KPIs, knowing where to look for inefficiencies and how to interpret the data. To get started, reach out to a team member.