Balancing Financial Performance Objectives — Jason Feintuch

Financial performance is a critical component of an organization as it not only tells investors how the business is doing but also sheds some light on the performance of the management and if the profits and operations are on track.

While businesses pay a lot of attention to financial performance, they tend to forget that setting financial performance objectives is equally as vital as they are the foundation for improving the performance of the business. Goals help with planning and tracking, ensuring the objectives are met within the provided timeframe.

For a business to achieve its financial performance objectives, they also have to balance other business areas.

To drive good long-term financial performance, it is imperative to set SMART objectives. The objectives should then guide your organization in developing a strategic plan to help you achieve them. Leading indicators should also feature to measure performance and indicate when corrective actions need to be taken.

Financial Performance Objectives

Some of the financial performance objectives you can set for your business include increasing venue, decreasing costs, and increasing profits. These objectives should be specific, measurable, achievable, realistic, and timebound.

KPIs and initiatives should therefore accompany them. These KPIs should have timelines to make it possible to measure the progress over time.

The Balanced Scorecard Framework (BSF) would be the best for managing your financial performance objectives. The framework connects the dots between the goals, KPIs, and initiatives or action plans.

For instance, if the objective is increasing profits, the KPI can be achieving $700,000 in profits per quarter. The initiatives could be hiring a sales team or monetizing some of the organization’s projects.

The progress of the KPIs can then be reviewed after every quarter. This way, the business can tell if the initiatives or action plan is working or needs reviewing.

Read the full article:

https://www.jasonfeintuch.com/strategy/balancing-financial-performance-objectives/

--

--

--

Corporate Strategy in New York, NY. Graduate from Penn State University with a bachelors degree in economics.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Creating a Hit on Netflix Means Not Missing the Target for 4K

The Amazon way — Prime, AWS, Fulfillment Centers and lots more!!

Ways Human Resource Management reaping benefits with HR Technology

How do corporations cooperate with start-ups?

Best Online MTB Shops

Apple Company misses him

Boeing India looking to partner with students and defense startups

For Serious Business People Who Are Determined to Thrive In Spite of a Crisis.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Jason Feintuch

Jason Feintuch

Corporate Strategy in New York, NY. Graduate from Penn State University with a bachelors degree in economics.

More from Medium

Profound information on food ingredients in various food products

NaXum CEO Shares How Technology Today Is Enabling Accountability In Referral Marketing

10 Things That Make You An Industry Expert

Is It Easy to Do Business With Your Company?