Finance Head Balanced Score Car

Area/Perspectiv Goal
e
FINANCIAL Value maximization

Working capital optimization

Debt optimization/ reduction

Cost optimization
Budget adherence
CUSTOMER Customer satisfaction

Price management
PROCESS Internal Control & Risk management

Cross functional issue resolution (Commercial-

Sales- Fin issue on TP)
Tax Compliance
LEARNING & Talent Management
GROWTH
 Finance Head Balanced Score Card (BSC) & Organization KPIs

Measure Unit/Frequency
Profitability (Net, EBIDTA) INR
ROE & ROCE for laminates & allied INR
ROE for veneers & allied INR
Working capital turnover Ratio
Accounts Payable/Receivable Turnover Ratio
Interest Costs Actual vs Target INR
Cash conversion cycle in days
Target D/E (Leverage) Ratio
Share of long term debts in total debt in %
Finace cost to Revenue share in %
COGS to revenue ratio Ratio
Budget vs total expenditure INR
Billing efficiency (% accuracy) in %

% TAT adherence- For payments, claims/queries for end customers as well as in %

distributors
Price/ Perceived value
% Strategic Risks Mitigated in %
Timely Audit, Closure of Books, Tax Filings in %
Forecast Accuracy in %
Issues resolved (%), TAT in %

GST, Tax statement comparision

% change in knowledge assets in %
SAP, CRM utilization vs cost
ROI per employee INR
 Weightage Value Target Lag/Lead
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
4 - - -
4 - - -
Customer to finance department are-
vendors, financial instutions and internal
employees
3 - - -

4 - - -
5 - - -
3 - - -
5 - - -
3 - - -

5 - - -
3 - - -
3 - - -
3 - - -
 Marketing Head Balanced Score Card (BSC)

Area/Perspective Goal
ROI

FINANCIAL

Budget Adherence
Brand Awareness
CUSTOMER

Lead Management

Event Management
Engagement Level
PROCESS

Performance Improvement
LEARNING &
GROWTH
Marketing Head Balanced Score Card (BSC) & Organization KPIs

Measure Unit/Frequency Weightage

Marketing Expense as % of Revenue in % 5
Incremental sales INR 5
ROI by Marketing Channel (INR sales per INR marketing spend) INR 5

Cost of Acquisition (Marketing cost per sales account or per unit sales
by product/ geography) INR 5
Budget vs total expenditure INR 5
Customer Loyalty (repeat purchases) in number 5
Owned Reach (# subscribers, followers, customer database) in number 4
Marketing budget awareness-demand ratio in ratio 4
Marketing Qualified Leads Ratio in ratio 5
MQL to SQL Ratio in ratio 5
Website Traffic Lead Ratio in ratio 5
% Marketing Events on Time, Scope & Budget in % 5
Dealer/Distributor Coverage (wrt target) % or number 5
Social Media Reach in number 4
Reach Rate in % 5
Average response rates of campaigns 5
Collateral/Scheme Development 5
# Activations (marketing team interface with dealers) 5
ROI per employee INR 4
Total automation initiatives 4
Product Training in number 5
 Value Target Lag/Lead
- - -
- - -
- - -

To be
- - - discussed
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
 Purchase Head Balanced Score C

Area/Perspective Goal
FINANCIAL Budget adherence

Product Price Variance

CUSTOMER Customer Satisfaction

PROCESS Risk Mitigation

Inventory management

Cross Functional Support

Responsive supply
Vendor Management

LEARNING & Foster high performance work culture

GROWTH
 Purchase Head Balanced Score Card (BSC) & Organization KPIs

Measure Unit/Frequency
Budget vs total expenditure INR
Purchase expense as % of sales in %
Return to vendor cost INR
Annual cost reduction/SAVINGS INR
% Available rebates achieved in %
% price variance between contract unit price and international unit price in %
Number of complaints regarding product quality, Resolved in number

Plant stock (of RM) out incidents in number

Number of times stock below safety stock in number

% Currency risk mitigated in %

Inventory carrying cost INR
Inventory turnover ratio in ratio
Inventory Activity (Average Monthly Inventory Relieved/Total in Hand Inventory) INR
Purchase order cycle time in days
Waste cost as % of total cost INR
% SLAs Adherence in %
On-time delivery ( to plant) %
Vendor Performance Monitoring & Vendor Rating Quarterly
Outstanding payables and ageing INR, days
Payment processing cycle time in days
Adoption of automation initiatives
Number of initiatives for cross functional teams in number
 Weightage Value Target Lag/Lead
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
5 - - -

5 - - -
5 - - -
5 - - -
5 - - -
5 - - -
4 - - -
5 - - -
5 - - -
5 - - -
4 - - -
5 - - -
4 - - -
4 - - -
 Area/Perspective Goal
Budget adherence

Financial
New investments

ROI on investment

Accessibility

Customer (Internal)

Internal stakeholders retention

Improve operation efficiency

Disaster management plan

SLA met

Business value of the IT department

Coordination in IT services
Process

RICEFS
IT Policy compliance
Timely completion of projects
New product development
Downtime related to security issue
Restore success rate
Developing current capabilities
L&D
Compliance
 Measure Unit/Frequency Weightage
Budget vs total expenditure INR 5
IT expense as a percentage of total expense (Percent over/under IT
in % 3
budget)
IT expense per employee INR 4
Total investments on new tools/softwares INR 3
New investment as % of total budget in % 4
% asset / platform utilization in % 4
Support expense per user INR 3
Average request response time in hours 3
Business system use in % 3
The number of critical problems reported by user/tickets raised in number 4
Open ticket vs total raised number 3
Average Turnover/retention period of IT employees In years 4
Average time required to address an end-user problem In hours 4
Number of end-user queries handled in number 3
Number if initiatives for any data hazards in number 4
% TAT adherence with commercial in % 4
% TAT adherence with sales & marketing in % 2
Percent resources devoted to strategic projects in % 3
Mean Time Between Failures (MTBF) in hours 3
% redundancy % 3
Mean Time to Repair (MTTR) in hours 4
average time given in hours 4
TAT adherence to new joiner-email/IT asset in % 3
Instances of critical delays in number 3
# proof of concepts/pilots in number 3
Availability (uptime) in hours 3
# Returning problems in number 2
# Training sessions held in number 3
# Learning, knowledge sharing activities done in number 3
Non adherence to SLAs in % 3
 Value Target Lag/Lead
- - -

- - - 100
- - -

- - -
- - -
- - -
- - -
- - -

- - -
- - -
- - -

- - -
- - -

- - -

- - -
- - -
- - -
- - -
 Logistics Head Balanced Score Card (BS

Area/Perspective Goal
FINANCIAL Budget adherence
Cost Optimization
D

CUSTOMER Performance to Promise

Relationship management
PROCESS Inventory management

Risk control

Internal Control

Quality Assurance
Cross Functional Support
LEARNING & GROWTH Performance Improvement
Logistics Head Balanced Score Card (BSC) & Organization KPIs

Measure Unit/Frequency Weightage Value

Budget vs total expenditure INR 4 -
Logistics as % of revenue INR 2 -
Annual cost reduction/Savings INR 2 -
Inventory in Hand (Value, volume) INR, Tons 5 -
Value of Slow Moving product INR 4 -
Inventory carrying cost INR 4 -
OnTime Delivery in % 5 -
Order to Delivery time (By product, by geography) in days 4 -
% TAT for claim settlements in % 3 -
Inventory Turnover in ratio 4 -
Order Fill Rate in % 4 -
Backorder Levels in % 4 -
Inventory ABC Classification 5 -
Inventory Record Accuracy 4 -
Forecast Accuracy 5 -
Safety stock in volume 4 -
Load capacity utilization 5 -
Shipment visibility/traceability % 3 -
Distribution coverage 5 -
No. of clearance inspection audits in number 3 -
SLAs Adherence 4 -
Total automation initiatives 2 -
 Target Lag/Lead
- -
- -
- -
- -
- -
- -
- - Before time, 0-7days, 8-14days, >14days
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -