The finance team are often the custodians of a companies most important metrics (KPIs) and as such are usually aware of the targets that have been set.
As a team they are also responsible for a number of key business processes like invoicing, collections, payroll, and reporting.
Which are priorities for improvement is the typical approach to how OKRs are planned, not finance the business-as-usual expressed as OKRs (Objectives and Key Results). Not ignoring the part finance often needs to play in helping other teams track metric (KPIs) for their own OKRs.
Below we’ve created a few Finance OKRs to show how they are formatted with an Objective and typically a few Key Results with metrics (KPIs) and targets that would be a stretch..
OBJECTIVE - High margin high growth
KEY RESULT 1 – Increase our Gross Margin % from 70% to 85%
OBJECTIVE - More efficient board reporting
KEY RESULT 1 – Reduce the time it takes to create board reports from 2 days to 3 hrs
OBJECTIVE - On-time collections
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Finance teams have to blend many aspects of business. Helping shape strategy, setting up the controls that allow the business to track and react to change, we well as report, and of course the day-to-day operational aspects of finance like Payroll. Finance OKRs could focus on all or part of these. It depends on there your priorities are. Maintaining all of your KPIs in the form of OKRs is not ‘best practice’. You are not trying to run your finance operations through OKRs.