Key Performance Indicators (KPIs) will vary from business to business and industry to industry. The metrics that matter to a Manufacturing business will not necessarily matter to an Accounting practice. When determining KPIs for your business, it’s important to assess your core activity and understand what you need to measure in order to measure your business value over time.
For project-based, Professional Services firms there are certain KPI’s which are essential to measure. These KPIs will likely be the same across Architecture, Consulting, Engineering and Legal Firms.
In a study by IDC – Managing your firm for growth – Professional Services firms were asked to identify the KPIs that matter most to their business and the results clearly show the top 10 KPIs which all Professional Services firms should measure. In this blog, Deltek specifically looks at the four metrics that every CFO or Finance Director needs to know and how to measure them. Namely Revenue Growth, Days Sales Outstanding (DSO), Customer Lifetime Value and Market Share.
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