The importance of performance measurement as a management tool is unquestionably beneficial. Many companies and their employees have tasted success thanks to the accurate measurements of their managers’ tools. Good measurement practice ensures that the performance of a company is well-observed.
Many of these tools were revealed in the CFO Forum held by BINUS Business School (BBS) with CPA Australia on May 20 at The Joseph Wibowo Center. Speaking on the occasion was Jonanda Yattha Sapurta, the Chief Financial Officer of Commonwealth Bank Incorporation and former Commonwealth Life CFO.
Yattha shared the keys to the success of Commonwealth Bank, which has been declared the Best Bank in Indonesia in the Customer Service Excellence category for the last two years. He explained the important role of financial measurement in the banking industry, which, for example, helped a CFO to decide Key Performance Indicators (KPI) of the sales people based on the loan balance at the end of the month.
“What gets measured gets done. Measurement has a major impact. If you keep an eye on the measurement and pay attention to it, then you will achieve the goals of your company,” said Yattha.
Yattha added that with this measurement method, employees’ intolerable working behavior can be changed. By changing the measurement method, management can change the employee’s behavior. He elaborated that the role of financial measurement is to make the company’s vision and mission tangible so that the employees’ capabilities can be better developed for the sake of the company.
CFO Forum has been held by BBS since 2007 as part of the Magister Management in Applied Finance program. The forum invites CFOs or top level managers from multinational or international companies to share their experience and knowledge and the latest issues in finance. (RAW)
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