Why Finance should not own (all) your KPIs

TipA point to make is that KPIs are not just financial measures. Financial measures are crucial in many organisations, but they are also `lagging’ – which means they tell you what happened after the event. KPIs should also help you see what is coming, not just what has passed. It’s like the difference between a rear view mirror (lagging indicator) and having a windscreen (leading indicator). You need both. Life becomes considerably riskier without a clear view of the road ahead. A good dashboard or balanced scorecard will have a mixture of financial and non-financial, leading and lagging indicators.

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