Engage Your Board Using KPIs

More and more, we are hearing from schools that enrollment is either steady or declining and that they are facing an operating deficit for the current fiscal year.  Navigating in uncertain times requires disciplined transparency and tracking of key performance indicators.  

When it comes to financial reporting, income statements are typically the most common report shared with boards. However, they can be confusing, cumbersome, and sometimes overwhelming, particularly for board members who may not be financial experts. 

Here’s why income statements can be difficult for boards to digest and why monthly KPI (Key Performance Indicator) reporting can be a more effective approach.

Using KPIs means no more glazed-over eyes during the finance portion of board meetings. It is more critical than ever to deliver easy to understand financial performance metrics to engage your board.

Income Statements = Information Overload

The sheer amount of information in an income statement can be overwhelming. While it’s thorough, it can also create a sense of information overload, making it difficult to zero in on the metrics that truly matter.

• Obscure

• Limited visibility into trends

• Not aligned with strategic plans

Boards want to know how financial performance ties into key strategic objectives, but income statements often fail to present that clear connection. This disconnect can hinder discussions about growth and progress toward goals.

Why Monthly KPI Reporting is Better for Boards

Switching to monthly KPI reporting offers a more focused and actionable approach that many boards find more useful and efficient.

1. KPIs Are Clear and Focused

KPIs provide a concise snapshot of the most important drivers of success. Unlike income statements, which cover a wide array of financial data, KPIs are laser-focused on the metrics that matter most to your performance.

Trustees can zero in on KPIs that are directly related to strategic plan goals. This clarity makes it easier to understand performance without getting bogged down by unnecessary details.

Benefit: Simplicity and Relevance 

2. Real-Time Insights

KPI reporting should always be done on a monthly basis, providing more real-time insights. This allows you to take action to address issues faster.

Boards can monitor progress toward goals in real time and make decisions with up-to-date information. Real-time insights foster a more agile and proactive approach to sustainability.

Benefit: Faster, More Informed Decision-Making 

3. KPIs Align with Strategic Objectives

KPI reporting allows organizations to choose metrics that align directly with their strategic plan. KPIs can be tailored to reflect the progress and performance in these key areas.

This alignment allows board discussions to focus on the metrics that matter most for long-term sustainability. Rather than getting lost in the details of an income statement, the board can stay laser-focused on what truly drives success.

When all Board members easily understand financial performance, they are more likely to be engaged.

Benefit: Better Board Engagement 

Income statements often feel like a maze of figures that leave board members searching for actionable insights. 

In contrast, monthly KPI reporting offers a more streamlined and focused way to track a performance, providing boards with the clarity they need to make informed decisions. By concentrating on the most critical metrics, KPIs provide timely and strategic insights, making it easier to steer toward your goals.

In today’s often uncertain environment, boards need to be able to focus on what matters most. Monthly KPI reporting delivers the clarity, focus, and real-time insights that empower them to do just that.

Want help creating easy to understand KPIs? We are here to help.  Please reach out to kaitlin@apte.io to set up a time to chat.

Kaitlin Windle, Founder, Apte

As a proud alum of Hathaway Brown School for girls, Kaitlin is particularly passionate about independent school data intelligence.

With a background of being a professional ballerina to working in investment banking and private equity on Wall Street with JPMorgan and Pantheon, Kaitlin then entered the nonprofit sector as a Development Director and then CFO. 

Leveraging her investment banking skills for analyzing data, she started by manually standardizing board reports and delighting executive teams and board members with newfound analytics and reports.  

Using these reports, she was able to help drive organizations to their most successful fundraising and financial performance in under a year.  Seeing the difference that can be made in such a short time by using data to drive strategic decision making inspired her to start Apte to empower other organizations and independent schools.