The new KPIs that the CFO must monitor

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Measure in order to grow
As is commonly said, what cannot be measured cannot be managed. At first glance, this may seem like an exaggeration, but the reality is that it is not possible to accurately know the performance of a process if certain metrics are not measured. KPIs (Key Performance Indicators) are vital performance indicators that serve the exact purpose of measuring the success of a company's various processes and operations.

Some of these metrics are well known to CEOs and CFOs, and are the traditional way to measure the profitability of an organization. However, metrics such as revenue, cash flow or customer acquisition cost are no longer sufficient in today's world. With the increase in the number of data sources and the emergence of Big Data , non-financial KPIs, which are less tangible but equally important, are also emerging.

What are the important KPIs for financial management?
There are countless examples of companies, such as AirBnB or Uber, whose hungary whatsapp number database models cannot be measured solely by sales figures or profit margins and whose strategy depends on many other factors measured and evaluated through non-financial KPIs. Even so, these KPIs must be taken into account and included in the construction of budgets, forecasts and other documents that support decision-making.

Some of the KPIs that can be critical to a company's success and that present challenges when it comes to being measured are:

1. Employee satisfaction
Together with human resources managers, the CFO must be able to create ways to identify and measure the performance of KPIs that assess talent attraction and retention.

2. Customer experience
There are several metrics that allow you to measure the perception that customers have of their interactions with the company – satisfaction, NPS (net promoter score), ease of use of channels, etc. – and these are inseparable from financial results. CFO 5.0

3. Brand reputation
A strong brand sells more. To identify the perception of a brand, there are several KPIs that can be useful: employee retention rate; customer retention rate or attrition rate; online reviews or social media sentiment analysis (social listening), to name a few.

4. Process efficiency and productivity levels
It is not enough to invest in process improvement and automation if their evolution is not measured and analyzed, which will allow productivity to continue to be improved and returns to be increased.

The CFO of the future must create close relationships with the company's various departments, since it is from these departments that data emerges.

To what extent are these KPIs relevant to the CFO?
Although we are talking about non-financial KPIs, these will be included in financial documents, or at least in documents produced by the team or that must be analyzed by the team (and by the CFO) to make decisions.

Let's imagine that there is widespread dissatisfaction among employees. One solution to ensure retention could be a salary review or other financial benefits, something that will have an impact on the company's budget.

Similarly, if brand perception is damaged, this can have consequences for sales and customer retention, and therefore for the company’s budget. This means that everything that happens in an organization has an impact on the bottom line, and is therefore in the CFO’s interest.

Therefore, the CFO must assume responsibility for defining KPIs and monitoring the evolution of their performance.

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