Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
Ideally, you need to have a strategy (in a form of a strategy map) before you start thinking about the ways to measure its execution (KPIs). Don't have a strategy map yet? Use free Strategy Map Wizard to create a strategy map for your current business challenges. The wizard will:
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Funds being the most treasured possession in any company, these has to be handled in the most prudent manner giving attention to all the options for application and sources that are available.
Therefore, Budgeting and forecasting occupies an important place in any organization as wise usage of funds depends on this act. The finance department needs to look out for ways by which they can procure money for materializing their expansion or diversification plans.
Also, estimates are to be made in a number of directions such as the 'prices of raw material', 'selling price', 'manufacturing costs' etc.
By making realistic predictions about the expenses to be incurred, one can avoid the sudden and 'unpleasant surprises' that would often be the case in the absence of any such anticipations.
Earlier this budgeting activity used to be an annual event in most of the organizations but with the ever-rising uncertainty in both the internal and external surroundings, the time lapse between any two consecutive budgets has got sliced considerably.
One can make use of the metrics route to sum up in a 'calculative' manner the past attempts and future course of action.
This is the actual scorecard with Budgeting and Forecasting Dashboard and performance indicators. The performance indicators include: budgeting and forecasting, management perspective, number of sources used for budgeting and financial forecasting, number of methods that have been used for forecasting, success ratio, % increase in accuracy of forecasting, conformance perspective, objective fulfilment ratio, % of employees, who agree with the estimations set, degree of debt: equity ratio conformance, debt coverage index, structural perspective, number of supportive elements in the software, frequency of budget preparation, % of data that is according to the area in which budget is being built, number of cross-checking methods stuffed in the budget, continuous improvement and learning perspective, % decrease in time for budget estimations, cost decline fraction, % drop experienced in deviations, usefulness ratio.
Download a trial version of Budgeting and Forecasting Evaluation Balanced Scoreboard or purchase a full version online.
How is this book different from 796 other book titles about KPIs on Amazon?
"Before writing a single line, I formulated some guiding principles, one of them was: "If our clients ask, "How can I find a good KPI for..." - I want this book to provide a perfect answer."