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