TriFinance goes beyond P&L
Serge Vigoureux (MI&S) about the power of personnel KPI's at TriFinance
Whilst many organizations still struggle with traditional reporting formats, TriFinance is practicing what it preaches: it goes beyond traditional P&L. Serge Vigoureux, business unit leader MI&S explains the power of new KPI's to measure and control the company's performance.
Many finance managers may like the concept of ‘beyond P&L’, still only few of them dare to walk the extra mile. Rather than traditional command-and-control-systems, TriFinance uses ‘Beyond P&L’, according to Serge Vigoureux. ‘We mainly use two sets of data in our reporting: pure financial data, and personnel related data. Our more than ten business units, spread over three countries, report to the leadership team. This is not done in the traditional P&L way.’ Rather, some non-typical KPI’s measures are used, such as personnel retention, since tenure is considered one of the most important KPI’s at TriFinance. The financial data can be detailled to the lowest granular level: the hours spent by a consultant on a specific project, with all necessary detail (pe billable, non-billable, (non)-productive, ...).'
TriFinance does not only want to focus on budget variances. Rather, it uses a set of performance drivers linked to the company and business unit strategies. Many of these are dealing with personnel data. Examples are internal career paths, training data, internal transfers, pricing power of consultants, etc. All these parameters are delivered by systems used by the respective Blue Chip Boutiques and give a keen insight in the lifecycle of the TriFinance consultants and are a leading indicator for company growth.
‘This way of controlling goes beyond the ‘classical calendar year’, Vigoureux says. ‘It makes no sense to lean back at the end of the year, looking at your accomplishments. You might forget to do the investments needed. Moreover, when you work on a calendar basis, you very often are late in seeing adversities. Beyond budgeting at the contrary is stimulating to put much more emphasis on longterm targets.'
Does that mean TriFinance is no longer making budgeting exercises? Sure not! Vigoureux: ‘but we consider them as a steering mechanism, rather than a pure controlling one. It is based on elements from the managerial P&L, built per month en departing from current projects.’
(Picture: (c) Jerry De Brie)