By: Christi Johnson, Strategic Management Consulting Services
The following is part six of a multi-part series on The KHA Way, KHA Management Consulting’s Integrated Service Offering. This blog series includes the benefits of using KHA Management Consulting Services and the components included.
If you review your financial statements on a consistent basis, you will notice that income and expenses fluctuate both positively and negatively. While this is vital for management to know, this financial information is historical. It provides beneficial insight to the organization and its past performance but does not provide any details needed in order to make decisions that will affect the future state of the business. Therefore, if management wants to actively drive the business, timely data must be gathered for the activities that show the performance of the business.
In order to begin monitoring this data, management must first determine what those key indicators are that are relative to their business. Each business will have a unique list of measurables that will comprise the data that management deems is most relevant to the day-to-day management process. Often, the task of determining and narrowing down the list of the key indicators is an overwhelming one. Our goal is to find the right balance of information needed for you to manage your business without getting sidetracked by too much data. Our KHA Management Consulting team can help by facilitating a meeting within your leadership team to determine the key performance indicators that will provide insight to your business performance on a weekly basis. Once established, the appropriate weekly goal for each one must be determined and set. These goals should tie to a yearly plan and budget to ensure they are attainable and realistic.
The data provided by monitoring KPIs on a weekly basis is exponentially better when the data is organized in a way that allows management to monitor relevant data trends. A management dashboard can be developed by our team to provide the insight of not only the current weekly numbers but also prior weeks, months, or years data. The management dashboard will be the resource center for management to rely on to determine if the business is on track or if adjustments need to be made to rectify or avoid problems in a timely manner. Once the dashboard is built, the appropriate business personnel will be trained on how to update the document so that it becomes a valuable management tool. However, it is also a dynamic report that can and should be adjusted to meet the everchanging needs of the organization. Therefore, our trusted advisors are always available to provide additional help to ensure that KPIs and management dashboards are focused on a business’ unique drivers.
At KHA Management Consultants, we work with mid-market industry leaders to identify what makes the organization, its stakeholders, and its’ employees tick. We facilitate the Accounting Visibility process with your organization’s key constituents to ensure buy-in, ownership, and a new way of thinking about the organization and its stakeholders amongst all levels. From a resource perspective, we primarily use our unmatched experience but also tap into the top-level resources such as those made available by Harvard Business Review, relevant strategic management authors, and MentorPlus. Some of those materials, frameworks, and lessons have been used in authoring this series.
KHA Management Consultants, the consulting department of KHA Accountants, PLLC, based in Flower Mound, Texas, is always looking for opportunities to work with key clients ready to take their organization to the next level. If you have a desire to improve, take the first step toward success with the strategic management experts, and contact us at 972-221-2500.