As business owners and managers we struggle to stay on top of changing economic factors and how they are affecting our firm’s health on a short and long term basis. With the recent recession, the focus has been on keeping staff busy, getting more work, cutting expenses and declining profit margins as more firms compete for the same business.
Our clients consistently report that they struggle with a widespread lack of financial expertise necessary to effectively monitor success. The primary issues that I see across our client base are the confusion over what metrics to monitor, clear ways to hold managers accountable for results, and the lack of a good reporting mechanism to provide key financial indicators to executives.
Creating an Executive Scorecard
How do you create an effective reporting mechanism to capture the most relevant data and condense it into an understandable and useful tool for your firm?
- Simplify the process of setting goals and holding managers accountable.
- Provide for trend reporting to compare current periods to past performance.
- Measure and compare business units to each other.
- Allow for quick assessment of company health on a frequent basis.
- Compare your firm’s performance to industry benchmarks and your goals.
- Help the company focus on specific measurable results for improvement.
- Many financial indicators are used to measure a firm’s financial position and performance over a period of time.
How Can Stambaugh Ness Help You?
Stambaugh Ness can help you effectively implement a scorecard system. We can:
- Use your own firm’s project data and accounting to calculate key metrics.
- Review and interpret these key metrics with your executives so the Scorecard can be implemented as practically as possible.
- Provide industry benchmarks and assess how your firm compares with the goal of continuous improvement.
- Help to create a plan to reach specific metrics and goals by refining your processes and operations.
- Develop and implement an accountability plan for project managers, directors, and department heads.
- Create both a Scorecard and dashboard reporting system for user-friendly access to critical information.