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Improve the Effectiveness and
Efficiency of KPI Reporting
Dave ParadiAuthor of “GPS for
Presentations”, “Select Effective Visuals”, and “102 Tips to
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Context
Communication is the #1 Critical Leadership Skill
for a Treasurer
AFP 2017 Strategic Role of Treasury Survey; % of respondents rating the importance 4 or 5 on a 5 -point scale
96%
94%
93%
93%
92%
0% 100%
Communication
Collaboration skills
Strategic thinker
Business judgement
Analytical skills
Improve the Effectiveness and Efficiency of KPI Reporting
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Redefining the acronym
K
P
I
ey
erformance
ndicatornsight
Indicatora thing, especially a
trend or fact, that
indicates the state or
level of something
Insightthe capacity to gain an
accurate and deep
intuitive understanding
of a person or thing
Level of
Performance
Understanding
the
Performance
Improve the Effectiveness and Efficiency of KPI Reporting
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Key question for any measurement
How will measuring
this item identify the
actions that will help
us reach our goals?
It’s not about the tool …
It’s about the message
Improve the Effectiveness and Efficiency of KPI Reporting
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Creating an Executive Summary
The Challenge of Dashboards
Microsoft Power BI dashboard example
Information overload
Invite viewer to be
distracted from key
message
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Focus on Action
HighlightsAreas of
Concern
Item/area
Why is it in this category?
Explanation/Action
Executive Summary for February
Highlights
Areas of Concern
Time required for daily cash position 5.6% Phase 2 of automation live
Avg days to collect AR 2.2 days Largest outstanding invoice paid
% overdue AR 1.2% FGH Corp invoices not being paid
% of investments at MNO > 25% limit Need to move assets this month
Improve the Effectiveness and Efficiency of KPI Reporting
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Executive Summary for Month X
3.4
4.2
2.9
4.5 4.44.8
5.34.9
Max: 6
23 24 25 26 27 28 29 30
Days of cash available remains below maximum standard
% hedged
0%
20%
40%
60%
80%
100%
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7
% o
f F
xhedged
% of Fx hedged stayed within Treasury guidelines
Actual
Predicted
0.00%
20.00%
40.00%
60.00%
80.00%
Feb Mar Apr May June July Aug
% o
f cre
dit fa
cili
ties u
sed
Usage of credit facilities expected to decline as investment pays offAction Items• Keep close watch on credit facility usage
• Investigate increase in late payments
• Revisit Fx rate forecasts
Selecting the right visual for the KPI
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Message template for analysis
Option A:
<Analyzed area>
<Verb> <Conclusion>
Average transaction
amount is consistent
across regions
Option B:
<Conclusion> <Verb>
<Analyzed area>
Michigan, Florida, and
Maryland are top
states for fraud losses
State conclusion at top of slide
Selecting the visual based on the message
Which
comparison
gives the
insight?
To previous
period
Message is the trend
Message is the values
Message is the difference in values
To a
desired
value or
range of
values
Single
value
Message is the trend
Message is the values
Range of
acceptable
values
Message is the trend
Message is the values
Improve the Effectiveness and Efficiency of KPI Reporting
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Selecting the visual based on the message
Which
comparison
gives the
insight?
To previous
period
Message is the trend
Message is the values
Message is the difference in values
To a
desired
value or
range of
values
Single
value
Message is the trend
Message is the values
Range of
acceptable
values
Message is the trend
Message is the values
Prev. Period – Trend: Line graph
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
8 9 10 11 12 13 14
Fore
cast A
ccura
cy
Week
After issue in week 12, forecast has returned to previous trend
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Prev. Period – Trend: Line graph
Actual
Predicted
0%
20%
40%
60%
80%
Feb Mar Apr May June July Aug
% o
f cre
dit
facilitie
s u
sed
Usage of credit facilities expected to decline as investment pays off
Investment in new plant equipment
Prev. Period – Values: MWOCG
2800
1700
650
225
3200
1200850
1850
3500
0-30 31-60 61-90 >90
$A
R (
in thousands)
Making progress on collecting AR within 60 days
Sept
Oct
MWOCG = Multiple Width Overlapping Column Graph
Improve the Effectiveness and Efficiency of KPI Reporting
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Prev. Period – Difference: Columns around zero
400
-500
200
-40
-600
-300
0
300
600
0-30 31-60 61-90 >90
Change i
n $
AR
fro
m S
ept
(thousands)
Sales bump & better collections in Oct
Prev. Period – Difference: Bars around zero
400
-500
200
-40
0-30
31-60
61-90
>90
Change in $AR from Sept (thousands)
Sales bump & better collections in Oct
Improve the Effectiveness and Efficiency of KPI Reporting
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Selecting the visual based on the message
Which
comparison
gives the
insight?
To previous
period
Message is the trend
Message is the values
Message is the difference in values
To a
desired
value or
range of
values
Single
value
Message is the trend
Message is the values
Range of
acceptable
values
Message is the trend
Message is the values
Single value – Trend: Dashed line on line graph
Co. A
Co. B
Co. C
Co. D
Policy Max: 45%
0%
10%
20%
30%
40%
50%
Mar Apr May June July Aug Sep
% o
f in
vestm
ent
port
folio
Fund transfer in May kept investments under policy guideline
Transfer from Co. C to Co. B May 12
Improve the Effectiveness and Efficiency of KPI Reporting
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Single value – Values: Dashed line on columns
3.4
4.2
2.9
4.5 4.44.8
5.34.9
Max: 6
23 24 25 26 27 28 29 30
Days of cash available remains below maximum standard
Single value – Values: Dashed line on bars
22%
12%
45%
21%
Limit: 40%
p
p
q
N/C
1%
2%
1%
Prov A
Prov B
Prov C
Prov D
Still in over limit position with Prov C; Need to take action
Improve the Effectiveness and Efficiency of KPI Reporting
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Single value – Values: Markers on red/green area
0%
1%
2%
3%
4%
5%
Apr May June July Aug Sept Oct
% o
f in
voic
es d
ispute
d
May % of invoices disputed above goal due to single dispute
Value Range – Trend: Dashed lines on line graph
% hedged
Min: 20%
Max: 70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7
% o
f Fx
hedged
% of Fx hedged stayed within Treasury guidelines
Improve the Effectiveness and Efficiency of KPI Reporting
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Value Range – Trend: Line on red/green area
% hedged
0%
20%
40%
60%
80%
100%
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7
% o
f Fx
hedged
% of Fx hedged stayed within Treasury guidelines
Value Range – Values: Markers with dashed lines
Goal: 90
Industry Benchmark: 42
0
20
40
60
80
100
120
140
9 10 11 12 13 14 15 16 17 18 19 20 21
Min
ute
s t
o d
ete
rmin
e daily
cash p
ositi
on
Phase 3 of new system brought time below goal; still above benchmark
System Phase 3 live night of the 11th
Improve the Effectiveness and Efficiency of KPI Reporting
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Excel techniques: Creation & Updating
2 graph types on same graph
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Direct data driven labels
Takes name of series from data table
Adds value from data table
Separated by a space
Use space to position graph elements
3.4
4.2
2.9
4.5 4.44.8
5.34.9
Max: 6
23 24 25 26 27 28 29 30
Days of cash available remains below maximum standard
Improve the Effectiveness and Efficiency of KPI Reporting
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Special characters
Arial Wingdings3
p p
q q
Each series has only 1 purpose
Actual
Predicted
0.00%
20.00%
40.00%
60.00%
80.00%
Feb Mar Apr May June July Aug
% o
f cre
dit f
acili
ties u
sed
Usage of credit facilities expected to decline as investment pays off
Improve the Effectiveness and Efficiency of KPI Reporting
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The NA() function
Action steps
Make measurement action oriented
Focus communication to executives
Be clear about the message in the slide headline
Select the visual based on the message
Leverage the features of the tool you use
Dave Paradi
www.ThinkOutsideTheSlide.com
www.PresentingFinancialInformation.com
Improve the Effectiveness and Efficiency of KPI Reporting
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Additional resources for “Improve the Effectiveness and Efficiency of KPI Reporting” by Dave Paradi
Thanks for your interest in this session. If you want to further explore the topics I covered, here are links to resources that can help.
I have created a page on my website that brings together many of my thoughts on presenting financial information effectively to audiences. You can find it at www.PresentingFinancialInformation.com.
Here are some articles that will help you create more effective graphs in Excel or PowerPoint:
• Instead of putting every data point on a column or bar graph, consider focusing the audience on the important data by using an All Other category.
• The Chartmaker Directory is a great resource for finding out about different charts and how to create them in many different tools.
• Every aspect of your graph should support the message you are communicating, including the order of the data in the graph.
• When your message is comparing values, determine if the real message is the difference in the valuesinstead of the values themselves.
• When you are comparing a trend in two data series that are measured in different units, use an index line graph instead of a dual-axis line graph.
You can access hundreds of more articles on my website’s Article archive.
To contact me, email [email protected] or call 905-510-4911 (Eastern time zone).
