What do you do if your performance in Corporate Finance needs tracking throughout the year?

There is nothing to measure if there is no clear goal in the first place, and I want to refer to this goal as a "standard". Setting a clear standard is the first step to measuring performance and assessing work rate. This will enable you to know whether you are meeting the target set (standard), under-performing or over-performing, and what relevant steps to take to correct deviations.

To track your Corporate Finance performance throughout the year, establish clear metrics aligned with your goals. Regularly review financial reports, analyze variances, and adjust strategies accordingly. Utilize tools like dashboards or software for efficient tracking. Seek feedback from peers or mentors to identify areas for improvement. Stay updated on industry trends and regulations to adapt swiftly. Consistency and diligence in monitoring will help you stay on course and achieve your objectives.

Charting your finance journey starts with clear goals. Here's how to set and track them effectively: ?? Set Clear, Measurable Goals ?? Align with Strategic Objectives ?? Establish Specific Targets ?? Regularly Review and Adjust

Begin by setting clear, achievable, and measurable goals for yourself in corporate finance. These goals should align with the strategic objectives of your organization and provide a roadmap for your performance throughout the year. Break down larger goals into smaller, actionable steps with specific timelines to keep yourself on track.

Monitoring KPIs is like navigating with a compass in finance! ? Choosing the right indicators helps steer your company towards success.??

Identify key performance indicators (KPIs) that are relevant to your role in corporate finance. These KPIs could include financial metrics such as revenue growth, profitability, cash flow, and return on investment, as well as non-financial metrics such as project completion rates, client satisfaction scores, and process improvements. Regularly monitor these KPIs to gauge your performance and identify areas for improvement.

There is one thing to set clear goals. It is another to know how to measure performance towards achieving those goals. KPIs come in handy as a means to achieve the latter. Being able to come out with relevant, effective, and easy-to-track and measure Key Performance Indicators is therefore of prime concern.

You can measure a lot, financially. But it’s important to not overwhelm either yourself or management. Remember, not everything is key. Select only the indicators that are key to success and make sure that you’re not making your KPI’s goals in and of themselves. If you do so, you’ll interfere with their effectivity and effectively, you’re driving unwanted behavior. People will do anything in their power to make those goals, especially if their salary is directly influenced by KPI values. KPI’s are essential when monitoring performance. Be cautious when working with them however, as they always have to represent actual company performance.

Picking the right KPIs isn't like grabbing a coffee. It's more like brewing the perfect cup that suits your taste. Common financial KPIs—net profit margin, return on investment (ROI), cash conversion cycle—are not just numbers. They're the secret sauce that gives you insights into your company's financial health and operational efficiency. But here's the kicker: regularly monitoring these indicators is akin to having a financial health check-up. You wouldn't want to find out about a serious illness because you skipped your annual check-ups, would you? Similarly, keeping a pulse on your KPIs helps you quickly identify areas that need a band-aid or, sometimes, even surgery.

Financial tools are game-changers in today's landscape. ? Automate data collection and gain real-time insights for informed decisions. ??

Most companies run in software nowadays. All software produces data. The best insights are created by selecting the right data and create management reports through apps like Power BI, Tableau or Qlic. Be sure to know your data in and out before you make any decisions based on them. Effective reporting models created in such visualization apps can be leveraged to make informed decisions. Be sure that you fully understand the data you’re working with and don’t rely on data and their visualisations alone. Interpreting data or visualizations and made-to-measure reports can be used to have discussions with senior management in order to drive results.

Align your performance data and reports to the organizational objectives and strategy. Even though it might seem wise to adjust whenever you see fit, it’s wise to select top level KPI’s in order to drive change and performance in the long run. The challenge is to not focus too much on things that need rapid adjustment. At the same time, KPI’s should give you information on levers that you can actually adjust in the short term to maximize long term outcomes. Recommended review periods are annually by default, in some cases you could go for biannual reviews.

Don't wait until the end of the year to receive feedback on your performance. Seek regular feedback from your supervisor, colleagues, and team members to gain insights into your strengths and areas for development. Actively solicit constructive criticism and use it as an opportunity for growth and improvement. Consider seeking coaching or mentoring from senior leaders or external advisors to enhance your skills and performance in corporate finance.

While elements like budgets could be changed based on KPI data, they’re there for a reason. Be very cautious with changing targets for your KPI’s as it’s next to impossible to accurately track performance with moving goal posts. In fact, as a business controller I would recommend against changing them throughout the year. KPI values should ideally lead to conversations with the people that are responsible for taking action. Use KPI’s to discuss potential strategies for working differently, and be reluctant to try and interfere with outcomes. As indicated earlier, your KPI’s shouldn’t be goals in and of themselves. They should only track performance and show whether or not you’re on track to achieve your goals.

In conclusion, effective performance tracking in corporate finance requires a proactive and strategic approach that goes beyond annual reviews. By setting clear goals, establishing KPIs, keeping detailed records of your accomplishments, seeking regular feedback and coaching, and continuously updating your skills and knowledge, you can track and improve your performance throughout the year and achieve your professional goals in corporate finance.