The financial services sector has evolved significantly in recent years, driven by technological advancements and global socio-economic events. Recognizing the importance of staying ahead in this dynamic environment, The KPI Institute (TKI) is dedicated to providing leaders, professionals, and the broader business community with essential knowledge and resources.

Every month, TKI curates a collection of diverse learning materials and opportunities in strategy and performance management and adjacent fields. Some of these resources, while released years ago, remain highly relevant due to their timeless principles and adaptability to changing business dynamics, providing enduring value and insights for today’s challenges.

This month, TKI is pleased to present comprehensive, research-based resources focusing on finance.

Top 10 Finance Key Performance Indicators (FREE): Part of the Top 10 KPIs Series, this collection of posters provides an overview of how key performance indicators (KPIs) are measured in practice today, specifically in finance. Some of the KPIs profiled in this poster are % Capital acquisition ratio, #Labor multiplier, and $ Debt-adjusted cash flow.

Articles (FREE): Find practical insights related to the financial services industry from a variety of articles published on Performance Magazine, written by subject matter experts and research analysts.

• Millennials and banks: surmounting the digital divide
• Fraud in the travel industry: Is digital footprinting the solution?
• Banking conundrums: customer focus or operational performance?
• Managing bank performance with the Balanced Scorecard

The Finance KPI Dictionary: This dictionary provides valuable information on over 190 KPIs not only by defining them but also by presenting the calculation formula for each and every one of them. It is an innovative tool, essential for assessing and optimizing a company’s performance in the five main functions of a finance division within an organization: asset/portfolio management, financial stability, forecast and valuation, liquidity, and profitability.

The Top 25 Finance KPIs – 2020 Edition: This report features the most popular KPIs used in the finance sector. It offers a comprehensive practical learning opportunity with KPIs by including not just detailed documentation for each KPI but also engaging articles discussing optimal practices for selecting and documenting KPIs.

Certified Data Analysis: Professionals in the finance sector can benefit from attending this course because it equips them with essential skills in data analysis, allowing them to create accurate financial models, optimize investment strategies based on comprehensive market analysis, make informed decisions, and mitigate risks effectively. 

Certified KPI Professional and Practitioner: Professionals within the finance sector can gain considerable advantages from enrolling in this course. It is packed with indispensable knowledge and competencies needed for accurately measuring, assessing, and articulating financial performance metrics. With these skills, finance professionals can lead strategic initiatives, make informed decisions, and significantly contribute to improving the overall success and financial stability of their organizations.

Key performance indicator (KPI) selection is similar to laying the groundwork for a strong structure. KPIs are the building blocks of performance measurement, enabling informed decision-making for organizations.

In the same way that building foundations are tailored to the terrain, KPIs ensure companies stay on track toward their goals. It is possible to develop misguided strategies if KPIs are selected incorrectly. However, KPI selection is not easy. In fact, one of the top three issues in strategic planning is identifying the appropriate KPIs, as indicated by the State of Strategy Management Practice in 2022, an international research study by The KPI Institute (TKI).

According to Aurel Brudan, CEO of TKI, choosing the right KPIs is a multifaceted undertaking due to the interdependencies inherent in the process. He explains that the process requires, among other things, extensive research for internal and external documents, the participation of internal stakeholders, and the adaptability to shifting environments or business priorities.

On top of those challenges is the need to determine the quality and attributes of KPIs a company should select. Mihai Toma, TKI’s Managing Director of Consulting Services, recommends that organizations choose KPIs that are useful, reflecting quantitative expressions for achieving key goals. KPIs should also be specified properly, with no jargon or complex concepts. Furthermore, balance is critical, with two KPIs for each target preferably monitored to avoid potential imbalances and enable a full performance review.

Given these challenging requisites, how should organizations approach KPI selection? Similar to how engineers analyze the structural requirements and complexities of a building, organizations must meticulously evaluate their unique needs and objectives when selecting KPIs. The whitepaper titled “TOP 10 KEY PERFORMANCE INDICATORS 2023: Expert Tips for Choosing the Right Metrics” details the structured method designed by TKI for choosing KPIs and provides strategies for overcoming the most common obstacles in the process. Moreover, the report highlights the most popular KPIs in 2023 on smartKPIs.com, the largest repository of documented KPIs.

Download the free whitepaper now, and do not miss the upcoming “Top 10 KPIs – 2023 Extended Edition” for deeper industry insights. Follow the  TKI’s LinkedIn page to stay updated!

Key performance indicators (KPIs) are metrics that gauge how effectively a business meets its goals. They have diverse applications, including monitoring performance, evaluating employees, improving processes, managing projects, and ensuring compliance. 

Moreover, KPIs provide an unbiased assessment, leading to informed decision-making and a better understanding of business dynamics. Regardless of their specific use, KPIs are essential for effective business management. 

The KPI Institute analyzed the most viewed KPIs in the first quarter of 2023 on smartKPIs.com, the largest database of documented KPIs (+21,300 KPI examples) with 75,000 community members, in their most recently published whitepaper, “TOP 10 KEY PERFORMANCE INDICATORS 2023: Expert Tips For Choosing The Right Metrics.” These KPIs reflect key metrics that provide insights into various aspects of business performance. Analyzing these metrics helps organizations understand their operational efficiency, customer satisfaction, financial health, and employee performance. 

However, choosing the right KPIs continues to be a challenge as they should match the company’s strategy and targets. Based on findings from The KPI Institute’s 2022 State of Strategy and Performance Management Practice Report, KPI selection ranks among the top three most challenging processes for businesses globally, regardless of industry. KPI selection requires meticulous planning, analysis, and cooperation among different departments and stakeholders. 

Thus, the TOP 10 KEY PERFORMANCE INDICATORS 2023: Expert Tips For Choosing The Right Metrics delves into the KPI selection process developed by The KPI Institute. It primarily involves scope clarification, selection criteria and techniques, leading up to the initial performance review meeting.

To discover the top 10 KPIs for 2023 and gain deeper insights into the best practices for KPI selection, download the TOP 10 KEY PERFORMANCE INDICATORS 2023: Expert Tips For Choosing The Right Metrics for free on the TKI Marketplace.