Next-Generation KPIs of Highly Successful CFOs

Talent Pool

An organization’s talent is its most important asset, which is why it’s imperative for CFOs and CHROs to have a strong partnership beyond just the cost of payroll. As finance and HR increasingly lead strategic organizational transformation, ROI comes not only with financial savings, but also from the new insights and visibility into the business HR and finance gain with the cloud. Together, the two can identify the most appropriate workforce KPIs for better collaboration to help drive the company’s overall strategy.

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Business Process Efficiency

The cloud and associated emerging technologies are pushing business to undergo a digital transformation to better optimize their operational processes. New technologies such as AI, machine learning, and IoT are taking over mundane businesses tasks and freeing up finance leaders to provide better, more strategic direction. With additional insights into new areas of the business and more detailed views into their own functions, CFOs can identify new areas to monitor and develop related KPIs to address issues or drive further business success.

Customer Experience (CX)

Customer satisfaction and loyalty are key drivers in the overall success of a business, so it’s important for CFOs to consider KPIs that keep customers in mind and support the customer experience. For example, access to more information across the entire organization can help deliver the insights needed for a CFO to analyze areas like customer complaints or product returns which can help determine where to make additional investments to improve on the customer experience.

Brand Reputation

Brand reputation has always been tied to company revenue. The digital transformation has now magnified the effect forcing CFOs to focus more on brand reputation metrics as non-financial marketing KPIs. In fact, according to a recent study by the American Institute of CPAs and the Chartered Institute of Management Accountants (AICPA/CIMA), modern finance leaders are 69 percent more likely than others to focus more on reputation metrics, and 48 percent can accelerate their business’ ability to take new products to market, often resulting in revenue growth. Modern CFOs can accomplish this through the cloud by having the same visibility to marketing metric data as the CMO. If a CFO can pinpoint data that uncovers potential opportunities, then the two can better determine the best ways to supplement marketing spend.

Gone are the days of siloed departments. In today’s business environment, it is critical to consider a holistic view of the business with revamped KPIs to align with modern business operations models. Given the central role a CFO plays, the modern CFO must take the lead and adapt to a new set of finance and business KPIs that better align the entire organization to fuel business growth and guide the future direction of the company.