Focus on key figures: Successfully introducing and operating Business Central

What helps you in this situation when communicating with your clients and other stakeholders? How can you gain and stabilize approval?

Here you will learn which key performance indicators (KPIs) are useful for measuring project success, how to select KPIs specifically and what challenges can arise when measuring them.

You will also learn how precise analyses can improve the implementation process and maximize long-term benefits.

Why are key figures important when introducing Business Central?

You can use KPIs to monitor the progress and success of the introduction of Business Central. The following aspects become visible through KPIs:

• Project status: is the time and budget plan being adhered to?
• Process efficiency: How do the new processes improve working methods?
• Financial impact: How is the company’s result developing after implementation?

Key figures are the basis for analysis and optimization. They make it possible to make the success of the project transparent for stakeholders and decision-makers. Ultimately, you need them to justify the investment.

Which key figures are important?

Various categories of key figures are relevant. They can be divided into three areas:

1. project-related KPIs

These KPIs measure the progress and quality of the project:

• Schedule deviation: shows how much the actual progress deviates from the schedule. Minor deviations indicate a smooth process.
• Budget adherence: Measures whether the project remains within budget.
• Quality of implementation: Does the implementation meet the requirements? Internal audits or user acceptance tests (UAT) are suitable measuring instruments.

2. process-related key figures

These KPIs show how well the new systems and processes work on a day-to-day basis:

• Lead time: time required to complete a business process, e.g. from order to invoicing.
• Error rate: Number of errors after implementation. A low error rate indicates stable processes.
• Employee satisfaction: Shows how well the workforce is coping with the new tools and processes.

3. business-related key performance indicators

These KPIs measure the direct impact of the ERP implementation on the company’s results:

• Sales growth: is there a positive change in sales after the implementation?
• Customer satisfaction: Shows whether the ERP implementation has improved the customer experience.
• Profitability: Does profitability increase due to more efficient processes and less waste?
• Employee productivity: Expressed in faster task completion or higher quality.

Individual key figures: Why is a customized selection crucial?

The right KPIs depend on a company’s goals and challenges. A manufacturing company will choose different KPIs than a service provider. Standard KPIs are helpful as a first approximation, but customization is necessary to identify the company’s greatest potential.

Practical examples of targeted KPI use

Different industries use different KPIs:

• Manufacturing companies: Key performance indicators such as throughput time, reject rate and machine availability increase production efficiency.
• Trading companies: Delivery reliability, customer loyalty and returns rate help to increase customer satisfaction.
• Service companies: Successful projects, customer satisfaction and employee turnover are key performance indicators here

Long-term success monitoring and adjustment of KPIs

KPIs are not only relevant for the introduction phase. They are also used for ongoing optimization. A one-off look at the KPIs is therefore not enough. Rather, regular analysis and adjustment of the KPIs is necessary, as company goals and the environment are constantly changing.

Best practices for the introduction of KPI systems

The successful introduction and use of KPIs requires careful planning. Here are some best practices:

• Clear goal definition: set clear goals and communicate them to all stakeholders.
• Data quality: Data should be complete, accurate and up-to-date.
• Visualization: Use easy-to-understand graphics to illustrate the KPIs.
• Automation: Automate data collection and analysis to save time.
• Integration with Business Central: Use the possibilities of Business Central to record and evaluate KPIs directly in the system.

The connection to cost Accounting

Key figures such as lead time, error rate and productivity are closely related to cost accounting. A shorter throughput time, for example, reduces storage costs and improves capital commitment. A low error rate reduces costs for rework and complaints.

Find out more?

Key figures are the backbone of a successful introduction of Business Central. Through targeted selection, regular monitoring and a close link to cost accounting, companies can optimize their processes, increase efficiency and achieve long-term success.

Would you like to know how you can make the most of the benefits of CKL cost accounting in your company? In our webinars, we present our solutions and answer your questions. Just visit us and see for yourself: CKL webinars.