Not so long ago an Oracle finance survey found that more than 50 percent of finance managers in global companies specified a lack of visibility into reporting. Many also admitted difficulty in controlling the quality of financial data across the reporting process.
It’s tempting to throw new technology solutions at these issues. But not so fast… Investing in brand new solutions will not streamline critical processes, or generate meaningful data. However, if you align technology with your company’s KPIs, you will rationalize all those processes, finding ‘where’ to make new investments.
When KPIs become TMI
Key performance indicators are just that: KEY. Numerous KPIs across a broad range of processes could get confusing and dilute the power of the data. Nailing down the value of business priorities and drawing a clear connection to KPIs will help drive data clarity. This clarification activity indicates where technology will empower the organization, and where new technology is not necessary.
With aligned KPIs, you can measure more strategically, have more time to model, see results of potential actions and respond with greater efficiency. You’ll have a better understanding to explain:
- What happened?
- Why did we get these results?
- What will happen if, for example, we acquire a business or increase sales by 10 percent next quarter?
Finance teams and senior management will be able to see the possibilities and plan without incurring risk. An objective advisory service team can work closely with you to establish a process for modeling and assessment. They can also help you find the right technology to plug in along the way if it is necessary. The information you extract and apply to your organization’s processes will be meaningful and drive results.