Financial KPIs, Scorecards, Metrics

The financial section in Balanced Scorecard articles includes articles on various topics related to Balanced Scorecard and Finance. You will find there BSC Best Practices, some really useful Guides on how to use Balanced Scorecard in Finance as well as Balanced Scorecard Success stories.

Some articles on the BSC Guides topic:

• The Importance of Knowing How to Measure Transportation
• What to Do Before Knowing How to Use Balanced Scorecard
• Process on How to Use BSC
• How to Develop HR Measures for Better Performance
• Things You Must Do to Improve Security Performance
• Indicator financial research-A complete guide
• What Makes a Good Indicator for Marketing?
• How to Get Good Indicators for Business
• Key Performance Indicators Guide to a Proper Analysis
• Creating a KPI Checklist: Action Required

admin Articles on Finance Balanced Scorecard, finance

Measure financial performance with custom performance formulas

The new version of BSC Designer PRO released, now it is possible to customize formulas used to calculate the performance of the KPI. It is possible now to use not only linear formulas, but actually any dependency, including binary function, where you can specify the value of the performance for certain intervals.

The PRO version also suggests powerful Strategy Maps feature, which allows automatically export data from KPI into nice-looking strategy maps with all necessary diagrams and arrows.

Right now:

• Download fully-functional 30-day trial of BSC Designer
• Check the difference between Standard and Professional versions
• Check screenshots of BSC Designer

admin Uncategorized custom formulas, Financial Performance, measure performance, strategy map

The case study on Technika Forbes allows us to explore how the financial business performance of a company can be improved with the balanced scorecard approach. The fact the Technika Forbes is also a financial service firm, makes the case even more interesting as it allows us to know the viability of using the BSC approach in financial services firms which are inherently complex in nature owing the kind of work they perform.

The BSC approach proves rather beneficial to Technika Forbes as it allows the company to seamlessly coordinate the functions of its various discrete management teams. It also allows teams who at times may working in different divisions and possibly in different regions to identify the overall corporate objectives that have been specified by the top management.

With BSC approach, one can take the benefit of predefined KPI metrics such those related to Financial advisory etc which allows firms like Technika Forbes to improve the delivery of their financial services and benchmark themselves against competition in an effective manner. Last but not the least the BSC approach was also useful in helping employees understand their individual role in the overall improvement in the quality of the financial services that the organization delivered. Learn more about Balanced Scorecard Best Practices in Finance.

admin Articles on Finance best practices, case study, finance

Business consultants and owners of business-oriented web-sites will be interested in partnership program that is now available with BSC Designer, the tool, which will help to get rid of performance management problems during the financial crisis.

With affiliate program that is now available for BSC Designer, it is possible to be affiliate and resell both - scorecards from commercial library and resell BSC Designer itself.

For more information about Balanced Scorecard Partnership check the partners section online.

admin Uncategorized affiliate, crisis, partnership, scorecard

KPI Name: Activity Based Costing Balanced Scorecard Metrics

Related KPIs: Value Based Management, Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance

• Download Activity Based Costing KPI trial version
• Buy Activity Based Costing KPI full version

Customers also viewed: Finance Metrics

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Activity Based Costing Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Organizations that adopt the practice of ‘lowering the costs incurred in processes’ rather than opting for the ‘revenue generating methodologies’ will be following what is commonly known as Activity based costing (ABC). However, the changed thought asks for a ‘measurable’ and ‘quantitative’ method to keep an eye on the proceedings. The various directions that offer help in this regard are- ‘Cost driver Analysis’, ‘Internal Operations’, ‘Employees experience and Learning’ and ‘Performance’.

Cost Drivers can be analyzed using KPIs like ‘types of cost drivers’, ‘cost driver identification index’, ‘cost driver effectiveness ratio’ and ‘cost drivers creating non-required activities’.

Internal operations can be obtained using Parameters like ‘types of resource drivers’, ‘rework costs’, ‘Technological barriers to ABC implementation: Total Barriers’ and ‘Unit Cost variation’.

Employee experience and learning Perspective can be attained with metrics such as ‘Number of Training Sessions held’, ‘Employee participation Level’, ‘Experience enhancement ratio’ and ‘Workforce Alignment Index’.

Lastly, Performance Perspective can be had with metrics like ‘Rise in -successful decisions- ratio’, ‘% drop in -wastage- managed’, ‘-Best Practices- adoption rise’ and ‘Average Time decline’.
KPI in Excel – Screenshot:

admin Financial Management activity, Company Finance, costing

KPI Name: Value Based Management Balanced Scorecard Metrics

Related KPIs: Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance

• Download Value Based Management KPI trial version
• Buy Value Based Management KPI full version

Customers also viewed: Risk Management

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Value Based Management Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Taking forward and keeping alive the motive of operating an organization asks for contributing to the ‘value’ that is provided to the stakeholders. Attaining this demands a constant check on the processes being followed in the organization in a multi-directional way. BSC can serve the purpose in this sense.

The perspectives that can be of help in this subject are- Financial Performance Perspective, Customer satisfaction and Value Perspective, Innovation and Value aspects of Products and Employee Satisfaction and Learning perspective.

The KPIs that can be clubbed under these headings are- ‘cost per unit decrease’, ‘measuring the variation of Economic profit in adding value to investors’ wealth’, ‘gain from improved working capital usage and Market share Growth.

Customer satisfaction and value perspective entails metrics like ‘level of customer service’; ‘customer retention ratio’; ‘fraction of customer base that considers the outputs beyond expectation’ and ‘Re-purchase possibility’.

Innovation Efforts and Value contained in Products can be attained with indicators such as ‘fall in product defect rate’; ‘research Funds: Revenues’; ‘Quality Enhancement ratio’ and ‘rise in number of products developed’.

Lastly, the Employee satisfaction and learning can be had with parameters such as ‘number of training sessions held’; ‘motivation level’; ‘fall in the ‘accidents’ ratio’ and ‘employee productivity ratio’.

KPI in Excel – Screenshot:

admin Financial Management based, Company Finance, management, value

KPI Name: Activity Based Management Balanced Scorecard Metrics

Related KPIs: Activity Based Costing, Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance

• Download Activity Based Management KPI trial version
• Buy Activity Based Management KPI full version

Customers also viewed: Project Management Metrics

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Activity Based Management Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Activity Based Management (ABM) provides a window to peep into the way activities in an organization have been taking place. This is turn opens up innumerable opportunities to ‘lower down the costs’ being incurred by way of infusion of resources. In this regard, BSC exists to provide a device for ensuring that the process occurs in ‘expected’ manner.

The various perspectives that can help are- ‘% decrease in consumption of resources’, ‘process cost drop’, ‘% of products meeting the minimum profit level’ and ‘increase in net margins’ for knowing the Financial Standing of the organization.

Customer profitability can be obtained with metrics like ‘successful strategy index’, ‘strategy execution ratio’, ‘fraction of customer base labelled profitable’ and ‘customer base rise ratio’.

Internal Operations can be obtained with metrics like ‘average process efficiency’, ‘process modification index’, ‘number of other management disciplines ABM is associated with’ and ‘number of cost-effective product designs’.

Lastly, Quality and Growth Perspective can be attained with metrics like Training: Revenues ratio’, ‘% rise in successful strategies’, ‘drop experienced in time taken for decision making tasks’ and ‘key activities quality enhancement ratio’.

KPI in Excel – Screenshot:

admin Financial Management activity, management

KPI Name: Wealth Management Balanced Scorecard Metrics

Related KPIs: Activity Based Costing, Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance

• Download Wealth Management KPI trial version
• Buy Wealth Management KPI full version

Customers also viewed: Finance Metrics

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Wealth Management Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Firms providing wealth management solutions are required to simultaneously take care of a number of internal (operations and recognition) and external (financial and economic disturbances) aspects. This elevates the need for making the ‘corporate level strategy’ easy to understand such that every stakeholder in the organization can relate to it. One of the ways is to frame it in perspectives, four or five in number. This quantification can be achieved by employing BSC.

Financial perspective can be used to obtain an insight into the financial standing of the operations. This can be achieved by quantifying the parameters like- new net money, return on assets, profit growth rate and cost income ratio.

Business development and growth perspective can be had with metrics like % new customers acquired, attrition rate of customers, conversion rate and % growth of assets under management.

Operations and recognition perspective can be obtained with KPIs such as deposits: AUM (Assets under management), Loans: AUM ratio, number of services offered and number of service awards won.

Lastly, employee perspective can be gathered with metrics like employee turnover, % increase in number of relationships per client facing employee, % increase in net new money per client advisor and % increase in revenues per advisor.

KPI in Excel – Screenshot:

admin Financial Management Company Finance, management, scorecard, wealth

KPI Name: Brokerage Firm Balanced Scorecard Metrics

Related KPIs: Leasing Company, Asset Management Firm, Wealth Management, Activity Based Management, Value Based Management, Activity Based Costing, Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance

• Download Brokerage Firm KPI trial version
• Buy Brokerage Firm KPI full version

Customers also viewed: Banking Metrics

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Brokerage Firm Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Brokerage firms are the intermediaries, which are involved in carrying out huge number of transactions between sellers and buyers of securities, on per day basis. Moreover, with the increase in client base and additions to the list of areas these firms are getting into, there arises a requirement to keep an eye on all of the aspects involved.

Financial position can be improved and maintained by using KPIs like ‘revenue from private capital management group’, ‘commission charged per transaction’, ‘commission earned per share’ and ‘account maintenance charges per account on yearly basis’.

Legal Compliance and Information Management Perspective takes into account KPIs like SEC compliance index, number of ‘fines’ paid, number of security measures adopted and lost message recovery time.

Customer Relationship and Satisfaction can be had with KPIs like accuracy level of investment advices, % increase in client base, % increase in volume of shares traded and client satisfaction index.

Lastly, Internal Operations Perspective provides an overview of the operations of the brokerage firm with KPIs such as % improvement in order execution speed, price deterioration index and order internalization extent and number of investment research projects undertaken.

KPI in Excel – Screenshot:

admin Financial Management brokerage, company, Company Finance, metrics, scorecard

KPI Name: Asset Management Firm Balanced Scorecard Metrics

Related KPIs: Leasing Company, Brokerage Firm, Wealth Management, Activity Based Management, Value Based Management, Activity Based Costing, Intellectual Capital Development, E-commerce Scorecard, Financial Outsourcing, Financial Benchmarking, Personal Finance

• Download Asset Management Firm KPI trial version
• Buy Asset Management Firm KPI full version

Customers also viewed: Real Estate Scorecards

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Asset Management Firm Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

• Check Overview KPI Report sample.
• Check Full HTML Scorecard Report sample.
• Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Qualitative ways of judging an organizational movements are a thing of past. Holistic measurement is the need of the hour and in this direction, several methods to evaluate a group have come up time and again. One of those that stood the test of times is BSC (Balanced Scorecard) which utilizes key performance indicators to evaluate performance.

Moving on the same lines, asset management firms too have appreciated the importance of this tool and these organizations easily structure indicators to reflect their operational environment. The perspectives that count in case of these organizations are Financial, Internal Operations, Risk and Performance.

Financial Perspective can be assessed by using parameters like ‘% drop in inflows’, ‘amount managed’, ‘dividend declaring percentage’ and ‘returns increase index’. Risk can be measured with ‘number of security measures used’, ‘number of security breaches experienced’, ‘% increase in funds given for the security issues’, ‘% compliance with the official guidelines’. Internal Operations can be obtained with ‘number of countries the organization is present in’, ‘number of overseas investors’, ‘minimum denomination needed’ and ‘sustenance period’. Performance Perspective can be had with ‘number of awards won’, ‘number of cities from where the investors participate’.

KPI in Excel – Screenshot:

admin Financial Management asset, Company Finance, management, metrics