Managing Performance
Financial Key Performance Indicators (KPIs) are crucial for measuring, monitoring, and driving a company’s strategic execution and overall health. They provide actionable insights into profitability, liquidity, operational efficiency, and growth potential, enabling leaders to align financial performance with strategic goals. The alignment of entreprise and financial KPIs empowers organizations to drive innovation, make informed decisions, and achieve sustainable growth and long-term success.
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Karpos Partners brings a unique, bespoke approach to evaluating and designing strategic KPIs, tailoring them to the specific objectives and market positioning of each organization. By assisting business leaders, the decision-making ecosystem, and advising the Financial Planning and Analysis (FP&A) function, Karpos Partners ensures the implementation of KPIs that not only track performance but also foster differentiation and competitive advantage.
Getting the (Right) Performance Right :
Focus on Governance through ESG & CSRD
The growing focus on Environmental, Social, and Governance (ESG) criteria, combined with frameworks like the Corporate Sustainability Reporting Directive (CSRD), has significantly influenced how businesses manage performance. These measures prioritize transparency, accountability, and long-term value creation, aligning business goals with broader societal and environmental objectives.
ESG and Business Performance
ESG criteria assess a company's environmental impact, social responsibility, and governance practices. Companies adopting ESG principles often see improved financial performance, enhanced reputation, and stronger stakeholder trust. Investors increasingly prioritize businesses with robust ESG policies, associating them with reduced risk and sustainable growth. For instance, energy-efficient processes or waste reduction initiatives often lead to cost savings and operational efficiency.
CSRD's Role
The CSRD, introduced by the European Union, requires companies to report detailed sustainability information. This directive emphasizes the integration of non-financial data—such as carbon emissions, diversity metrics, and governance structures—into financial reporting. By providing standardized frameworks, the CSRD ensures comparability, enabling investors to make informed decisions. For companies, adherence to CSRD fosters accountability and streamlines ESG integration, enhancing overall performance through better resource management and risk mitigation.
Governance as a Performance Driver
Strong governance underpins both ESG and CSRD compliance. Governance ensures that companies establish clear accountability structures, ethical practices, and transparent decision-making. Effective governance not only mitigates risks like fraud or regulatory breaches but also promotes a culture of sustainability. Boards with diverse perspectives are more likely to anticipate emerging challenges and drive innovation.
In conclusion, ESG principles, the CSRD framework, and robust governance practices converge to redefine business success. They compel companies to move beyond short-term profit motives, instead fostering resilience, ethical behavior, and sustainable value creation. Firms that align with these frameworks are better positioned to thrive in a rapidly evolving global economy.
As a CFO and international General Manager in banking, I gained valuable insights into financial management, strategic planning, and operational efficiency, allowing me to advise companies on performance management. My expertise includes financial analysis, budgeting, and cost control, along with leadership and cross-cultural communication skills essential for diverse environments. Additionally, my banking experience has provided me with knowledge in risk management and regulatory, supporting sustainable growth for businesses.
- Laurent MORTREUIL, Founder of Karpos Partners