Start with decisions
An indicator is useful when it helps a decision. First identify recurring decisions: hiring, reallocating time, adjusting an offer or following up with customers. Then assign a measure to each rather than collecting every available number.
Balance the dimensions
A dashboard may bring together available cash, margin by activity, customer receivables, sales conversion and delivery times. The selection depends on the business model. These examples do not replace accounting records or advice from an authorised professional.
Define a reliable measure
Each indicator needs a definition, source, frequency and owner. For conversion rate, specify what counts as an opportunity and when a sale is recorded. Without a stable convention, changes may reflect calculation methods rather than business activity.
Organise follow-up
Explain variances and connect them to a decision. A short review should lead to action, further investigation or a deliberate decision to maintain the current course. Remove indicators that are never used to keep the dashboard readable.
This content is general information. It is not legal, tax or accounting advice, or a personalised recommendation.
Apply these ideas to your situation
