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.
This tool outlines key objectives for processing accounts receivable, credit, and collections; the outcome measures associated with each objective; and the activity measures that drive each outcome measure. A link connects each outcome measure with its corresponding formula and an analysis of this formula.