Building a good FP&A team is essential to the success of the finance function and even for the whole organisation. In today’s business world, FP&A teams need to build a strong foundation before they can take advantage of the new technology trends.
A study showed that organisations with high bonus payouts performed much better financially than those who did not pay high bonuses. This is why incentives can be seen as a financial tool to drive better performance.
When we talk about performance measurement, KPIs are a common tool. It can be a financial measure or an operational measure. However, in recent years, KPIs seem to have fallen out of favour because it fails as a useful indicator of business performance. Should we abandon KPI? This article looks at the importance of designing and defining appropriate KPIs in performance measurement.
Kaplan and Norton’s Balanced Scorecard is a familiar concept, still widely used today, often falling to FP&A or Strategic Planning teams to create and then monitor. This process can be very challenging and problematic to deliver. This blog focuses on some practical observations and tips regarding the implementation of a scorecard, designed to help you get buy-in from the rest of the organisation.
Working at a local business unit often doesn’t give you access to sophisticated corporate systems to monitor performance. However, as a financial you are quickly immersed into daily operations, learning how things really work. A sample will be given of key indicators used to improve the cash forecast and position of a business unit.