Over the past five weeks, CFO Dive has focused on a handful of key performance indicators (KPIs) that your organization might track.
Professionals, within and outside finance, discussed how these metrics — churn, cash flow, talent retention, return on invested capital, and customer retention — factor into their decision making, and how partnering with other executives aided in the tracking process.
While each of these KPIs is distinct, and it remains true that one size does not fit all when it comes to tracking them, a few key points emerged from the series.
Collaboration is key
In each of the five columns, interviewees stressed the importance of relying on other c-suite members for insights, data and support that would not be available within the siloed finance team alone.
Especially during the pandemic, most teams gravitate towards looking out for their own and ensuring what's on their plate is taken care of first. But it is a vital reminder to collaborate with your coworkers and get their opinions and viewpoints on key operational issues.
Always be optimizing
Each of the finance leaders echoed the sentiment that, for tracking KPIs, trying to work backwards once something has already gone wrong is too late. CFOs must be exceedingly proactive about sussing out potential problems before they appear, and knowing how to change course without rocking the boat.
The CFO, perhaps more than any other executive, has eyes trained on the future. It is with this forward-looking attitude that they're best positioned to impart positive, productive change throughout the workplace, with the insights and data to back it up.
Everything comes back to finance
Whether the issue is organizational, human resources-adjacent, or even a qualitative, intangible concept like employees feeling appreciated, every piece of the equation comes back to finance, and ensuring a company turns a profit.
We remain curious about the long list of KPIs a CFO may potentially need to track in order to make the best possible decisions on their organization's behalf.
We want to hear from you. Which KPIs do you find invaluable? Which make your company tick? Which do you just want to know more about?