The financial KPIs every CEO should track
A short, decision-oriented KPI set.
By Amr Adel
A short, decision-oriented KPI set.
A chief executive does not need a hundred indicators. A short, stable set, reviewed every month, is more useful than a dashboard nobody reads.
A starting set
- Revenue growth against budget and last year
- Gross margin, by product line or project
- Operating cash flow and the cash conversion cycle
- Overheads as a share of revenue
- Net debt and the headroom on bank facilities
- Receivables overdue by more than sixty days
Make each one decision-ready
Each indicator needs an owner, a target and a threshold that triggers action. Without these, the monthly review becomes a reading exercise rather than a management meeting.
Keep it stable
Change the set only when the strategy changes. Trends over twelve months are worth more than a new indicator every quarter.
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