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How to Build an Effective Business Process

Posted by Protiviti KnowledgeLeader on Fri, Jun 01, 2018 @ 01:35 PM

buildingKey Performance Measures Improving the Process

An effective business process is built on a set of well-defined and clearly-stated business objectives. These key objectives articulate the ideal performance results that the company expects from that process. To monitor a business process so that it stays focused on reaching the key objectives, the company chooses appropriate performance measures. In fact, careful selection of the performance measures takes a company a long way toward improving a business process. Thus, to build and then continually improve an effective business process, a company establishes:

  • Key objectives to articulate the performance results the company expects from the business process
  • Outcome measures to determine whether the company has reached the key objectives
  • Activity measures to monitor the performance of those activities that are instrumental in reaching the key objectives

Download the entire sample to see a table of the below key objectives for providing external financial information, the outcome measures associated with each objective, and the activity measures that drive each outcome measure.

Key Objectives:

  • Accuracy and timeliness in all financial and related strategic disclosure activities
  • Recognition among stakeholders as an accessible and responsive investor relations (IR) department
  • A cost-effective and productive investor relations department

The following are key outcome measures of providing external financial information. Find the formulas to measure these key performance indicators along with analysis in the full sample on KnowledgeLeader.

Key Outcome Measures:

  • Percentage of stakeholders highly satisfied with the company's disclosure efforts, as measured by surveys
  • Quarterly incidence of noncompliance with disclosure regulations
  • Percentage of shareholders rating the department as highly responsive, as measured by
  • Percentage change in IR information distribution costs since launching online publishing efforts

This informationw as taken from the External Financial Information Key Performance Indicators benchmarking tool on KnowledgeLeader. More details are included in the full sample, such as: a table of the key objectives for providing external financial information, the outcome measures and activity measures, as well as formulas to calculate outcome measures.

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Topics: accounting/finance, financial reporting, laws & regulations, performance management/measurement

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