Simplicient Controlling 9 – Financial vs. Operational KPIs – A Case for Merging Them
A new doitinvest.com blog focusing on whether we should mix financial and non-financial KPIs.
This Simplicient Controlling blog will focus on the merger of the financial and operational KPI performance measurement. More exactly, on the pro’s and con’s of mixing the financial and non-financial indicators. In most companies’ practice, the various KPIs are often disconnected: whilst the Profit and Loss KPIs are firmly grounded in the financial department, the operational KPIs are often left in another silo – the Operations Management department, who anecdotically knows better and has the competences to develop them.
Separating operational KPIs (from the finance ones) is barely a good idea. It comes most likely from the realm of scientific management, from the times when Alfred Sloan professionalised General Motor’s management – in order to cope with its’ fast scaling up. Yet, six decades later the division is heavily entrenched in the corporate methods.Read More »Simplicient Controlling 9 – Financial vs. Operational KPIs – A Case for Merging Them