In the age of cloud accounting, we know how important it is for managers to have access to reliable management information (real figures) that is available at the right time to help them make decisions and diagnose the situation in relation to the various areas of the business.

The purpose of this article is to demystify a powerful tool, the dashboard, which has been designed to give you an overall picture of your operations at a given date and at a glance.

Definition of the dashboard

The dashboard is a company management tool made up of a number of performance indicators, the main purpose of which is to anticipate foreseeable or non-standard developments, as well as reducing the time needed to make decisions.

Why should your company have a dashboard?

A management dashboard can really become a powerful tool. With a quick analysis, you can spot problems, confirm the success of a project or identify key success factors. Having access to a dashboard means you can make the right decisions while reducing uncertainty. Quite simply, a dashboard provides a better appreciation of the risks inherent in your business. Do you need more reasons? Our advice: jump at the chance and try out the management dashboard.

What are the dashboard indicators?

The dashboard must:

• Provide an overview of operations in real time (or almost)
• Enable rapid and effective analysis to facilitate decision-making
• Present relevant key performance indicators (KPIs)

Key performance indicators (KPI)

A performance indicator is a unit of measurement used to assess a specific aspect of the organisation. It is always linked to an objective to be achieved. It may have a temporal, dimensional, monetary, statistical or other dimension.

The dashboard therefore comprises a set of performance measures, both quantitative and qualitative, and provides reliable informational support for organisations to achieve pre-defined goals and objectives.

How do you choose the right indicator?

First of all, to set up an effective dashboard, it is essential to clarify your objectives and define the relevant associated indicators. There is no point in analysing indicators that are of no interest to your company.

These indicators are generally categorised along four main axes: financial, customer, organisational and market.

Key qualities of a good indicator:

• Facile à mesurer et à communiquer
• Disponible – données relativement facile à obtenir
• Précis et fiable – résultats constants
• Contrôlable – possible d’influencer directement le résultat
• Objectif – aucune tendance à interprétation
• Comparable – peut être comparé à une cible

Examples of good performance indicators:

• Number of sales per invoice
• The minimum quantity for a product is not reached before 18 April
• Quantity produced is +2 than sales

How do you create an effective dashboard?

Here are the steps involved in drawing up the dashboard:

1. Define the vision and strategic objectives sought
2. Choose the appropriate performance indicators, taking into account the needs of decision-makers
3. Communicate the plan to the managers involved
4. Collect and validate actual, prospective and market data
5. Produce the dashboard and set up its recurrence schedule

The dashboard must be easy to update so that you can benefit from the latest data and make timely decisions to ensure the success of a project. You'll see, there's (almost) nothing more satisfying than seeing the results evolve!

Q&A

I already have a budget, so why do I need a dashboard?
The dashboard is a further development of the budget; it presents the key indicators that the manager must constantly monitor if he wants to achieve his budget. It also includes non-financial indicators that are just as important in managing the business. The combination of dashboard parameters will considerably increase your productivity.

How long does it take to set up?
It depends on the availability of data, your expertise in the company and the business world. You can call on a consultant to help you with this process and to give you advice.

What can I do if my KPIs don't really help me make decisions?
If necessary, you should repeat the exercise of identifying critical activities and processes, as well as assessing your management problems.

The dashboard, more than a financial indicator

In short, in an economic climate that is forcing companies to maximise the use of available resources, it is vital to be able to rely on a reliable and rapidly accessible source of information.

The management dashboard is therefore extremely useful, and should form part of the range of management tools available to organisations of all sizes.

If you need advice on setting up this tool, we'll be happy to help. Noa is always there for you!

This article is written by our expert, Josée Cloutier, CPA.