In order to sustain your business, it is essential to permanently control your company’s performance at both financial and commercial levels. But how can you effectively monitor the health of your organization? Find the answer in this article.
Determine and track your financial indicators
To optimize company’s performance, it is essential to select key performance indicators (KPIs) which will allow you to identify your strong points, but also to work on the points that can be improved. While there are a multitude of potential KPIs, here are the main themes you should focus on.
Turnover is probably the most basic and easiest indicator to use. By monitoring the evolution of your revenue over time, you will have a good overview of your company’s performance level. Also consider comparing your projected turnover with your actual turnover over a given period.
Balance sheet analysis
Working capital and working capital requirement are two key KPIs that represent respectively:
- the resources that benefit the company over the long term,
- the amount the company must have in order to pay its current expenses.
Positive working capital means that your company is able to cover its investments over the long term. On the other hand, negative working capital is a concern because it means that you do not have sufficient financial resources to meet all your investments.
The analysis of profitability is essential to improve your performance. It particularly involves three indicators: the break-even point, the net margin and the gross operating margin.
The first one consists in calculating the turnover to be reached in order to achieve a zero result, which will be your minimum objective to reach. The other two measure the profits generated by the company.
The net cash corresponds to the sums available in the short term, as soon as the company needs them. It is essential to make up for the time lag between cash inflows and outflows. The average time to pay customers must also be monitored continuously to control your cash flow.
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Monitor the health of your business on a daily basis
The financial aspect is not the only one to take into account to optimize your performance over the long term. Here are several things to keep in mind when monitoring the health of your business.
Your company’s sales performance is crucial, so you need to keep a close eye on it. In particular, the conversion rate is a key indicator. It represents the percentage of leads who became customers.
Also consider the retention rate, which measures your ability to maintain customers over the long term. If it is high, it means that you offer quality products or services and that your buyers are satisfied.
A company is not only about turnover, sales and profitability. The human aspect is essential: that is why you must not neglect the well-being of your employees.
Work pace, type of management, benefits in kind are some of the many factors that can influence employee happiness on a daily basis, and therefore the performance of your company.
For your teams to perform well, you must not only ensure their well-being, but also provide them with the best tools. Whether it is business software or collaborative work tools, make sure to provide your employees with the most appropriate solutions to help them achieve their goals.
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Get inspired by our customers
Do you need concrete examples to improve your company’s performance? In this case, you only need to look at the feedback from DigDash Enterprise dashboard solution customers.
The implementation of an HR management review
As part of a project to implement an HR management review, the municipality of Rueil-Malmaison adopted DigDash Enterprise to monitor several KPIs: payroll, workforce, absenteeism and training.
Today, the municipality has qualitative data, updated monthly, to accurately manage its HR indicators.
Creation of an activity reporting in real time
La Palette Rouge called on DigDash to help it create a portal that would allow its customers to access their own activity reports in real time, in an autonomous and interactive way.
It has been a real success and has resulted in massive customer adoption. Moreover, the solution was quickly adopted by La Palette Rouge as an internal monitoring tool.
Sales performance management
Wishing to make its KPIs accessible to its main partners, Volkswagen Financial Services (VWFS) has adopted DigDash Enterprise to manage its commercial performance indicators on a daily basis.
This is a real time saver compared to the previous tools used, with which the integration of data and the management of the various files had to be done manually.
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Regardless of your industry and KPIs, DigDash Enterprise adapts to your needs and issues to help you optimize financial, sales and HR performance.
Do you need tangible evidence? Request an online demo of our dynamic dashboard tool.
12 July 2021