Take a Control of Financial Crisis with Ready-to-use KPIs
When an organization experiences a financial downturn, it has to take into consideration a variety of factors to effectively deal with the situation. The need of the time is to use a standard framework that can help in getting a holistic view of the business.
KPIs arranged in a Balanced Scorecard can help the business in managing its performance during a financial crunch.KPIs in this regard can be broadly grouped under four perspectives- financial, business development, operational and workforce management.
Financial Management consists of KPIs such as % increase in credit days, % decrease in debtor days, liquidity ratio, accuracy of financial risk forecasts and consistency of cash flows.
Business Development Perspective takes into account KPIs like number of new long-term contracts initiated, client oriented products and services introduced, lead generation effectiveness, response level.
Operational Perspective provides an insight of the operations of the business. It comprises of KPIs like % reduction in decision-making and lead time, % decrease in cycle time to resolve adjustments, simplification of lending conditions and identification of negative patterns.
Workforce Management Perspective provides measures to effectively manage the workforce during financial crunch. It includes KPIs such as % decrease in staff turnover rate, training uptake, % decrease in sickness/absence Level, crisis communication and continuity of information and feedback.
Why do business professionals choose ready-to-use KPIs?
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
- Can a business professional research KPIs on his own?
- How do I avoid typical problems with KPIs?
- Is ready-to-use KPI applicable in my niche?
- Is KPIs' price affordable?
- Can KPIs can be easily integrated in any business environment?
- How can KPIs make the difference to the business?
How to align these KPIs with a strategy of our organization?
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:
- Ask you several questions to organize your ideas
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What are the benefits of Financial Crisis metric:
- Increase in credit and decrease in debtors days are among top indicators in this category.
- Decrease in time necessary for decision making is another KPIs that has the utmost importance in times of a financial crisis.
- Learning and growth perspective acquires are more important role when the company faces economical hardships. So, learning and education has to be evaluated too.
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More ideas on using Financial Crisis KPI
History has it that messing up of financial accounts have often tainted the images and reputation earned after hard times by firms and nations. The reason can be either the deliberate manipulation of numbers or a genuine financial crisis whereby one faces acute credit shortage.
Moving on, it is well-known that finance is the lifeblood of any organization, therefore it calls for adopting every possible strategy to regulate and circulate it in effectual manner.
Due to both the inlets and outlets of funds being numerous, it becomes important to employ a potent methodology for ensuring that inflows and outflows of finances are under effective supervision. One of the ways to avoid falling into the financial trouble is keeping a constant check on the application and sources of funds. Balanced Scorecard with related indicators on it can be designed to come out of unfavorable financial situation, if any.
The economic disturbances are an unavoidable reality of industrial world. To both escape and emerge unscathed out of financial troubles, one is required to incorporate useful monitoring strategies into management and keep an eye on the processes and movements.
More useful information for Financial Estimation
- Related metrics and KPIs for: Retail Sales, Sales, Credit Risk, Retail Banking, Mortgage, Financial Statement Analysis, Market Risk, Financial Risks, Operational Risk, Active Portfolio Management, Passive Investments.
- Customers who viewed this item also viewed: Accounting Metrics | Banking Metrics.
Financial Crisis Estimation Balanced Scoreboard Screenshots
Metrics for Financial Estimation
This is the actual scorecard with Financial Crisis Indicators and performance indicators.
The performance indicators include: financial perspective, % increase in credit days, % decrease in debtor days, liquidity ratio, accuracy of financial risk forecasts, consistency of cash flows, business development perspective, number of new long-term contracts initiated, client oriented products and services introduced, lead generation effectiveness, response level, operational perspective, % reduction in decision-making and lead time, % decrease in cycle time to resolve adjustments, simplification of lending conditions, identification of negative patterns, workforce management perspective, % decrease in staff turnover rate, training uptake, % decrease in sickness/absence level, crisis communication, continuity of information and feedback.
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