Steps to create a management dashboard for your business

Like a car dashboard, the management dashboard brings together all the essential data needed to manage not just a vehicle, but a business. This visual tool provides a succinct but powerful overview of a company’s operational health, by gathering relevant data and presenting it in an accessible way. But what steps need to be taken to create a relevant management dashboard and transform data into usable information? Would you like to master all the facets of management yourself? Discover our Master’s in Entrepreneurship and learn how to perform effectively in a challenging and stimulating environment.

Why do you need a dashboard for your start-up’s finances?

A management dashboard is essential to enable companies to effectively monitor and manage their limited financial resources, make informed decisions and create a solid foundation for successful future growth. It’s a tool that provides the clarity needed to navigate the complex and dynamic financial landscape that companies face.

First and foremost, the management dashboard gives you a clear financial picture of your business. Companies need to keep a close eye on their cash flows, revenues, expenses and investments. A management dashboard consolidates this data into a visual format, providing a quick, easy-to-understand overview of the company’s current financial situation.

Decisions taken at the very start of a business can have a profound impact on its future trajectory. Un tableau de bord de gestion fournit aux fondateurs et aux dirigeants les informations nécessaires pour prendre des décisions éclairées en matière de dépenses, d’investissements et de stratégie de croissance.

The management dashboard also makes it possible to monitor the key performance indicators (KPIs) essential to the company’s growth in real time, facilitating rapid adaptation to changes and the correction of potential drift.

A management dashboard can help the company track costs, margins and returns on investment, making it easier to identify the most profitable activities and allocate resources accordingly. It also provides a centralized and transparent source of financial information, which can boost the confidence of investors and business partners.

In what other areas is it advisable to use a management dashboard ?

Area 1: Human Resources

HR management dashboards track metrics such as staff turnover, individual performance, employee satisfaction, labor costs and more. This helps optimize human resources management and create a favorable working environment.

Area 2: Sales and marketing

Management dashboards can track sales performance, conversion rates, advertising ROI, lead tracking and customer segmentation to adjust sales and marketing strategies in line with actual data.

Area 3: Logistics

A management dashboard can help optimize the supply chain and ensure efficient product delivery by helping to monitor stock levels, delivery times and shipping costs.

Area 4: Quality control

Tracking manufacturing quality defect rates, cycle times, machine performance or production costs can help maintain and improve product quality while optimizing production processes.

Area 5: Customer service

Customer satisfaction indicators, response times, problem resolutions, etc., can be tracked using a management dashboard. This improves customer interaction and loyalty.

Essential steps for building your management dashboard

Step 1:Define your objectives

Start by clarifying the objectives of the dashboard, by defining the main indicator you want to measure (gross margin, net income, number of products sold, telephone reception rate…) What are the key metrics you want to track and the problems you want to solve? Identify the KPIs relevant to your business.

Step 2:Select data

Identify the data sources you need to feed your dashboard. This can include financial, operational, sales, marketing and other data. Make sure your data is reliable, accurate and regularly updated.

Step 3:Designing the structure

Plan the layout and structure of the dashboard. Identify graphic elements such as charts, diagrams, indicators, etc. Organize KPIs logically for fast, efficient visualization.

Step 4:Organizing the elements

Arrange visualizations on the dashboard logically and intuitively. Make sure that the most important information is easily accessible and that the dashboard is visually consistent.

Step 5:Validate and test

Test the dashboard with users to make sure it meets their needs and is easy to understand and use. Identify any problems and make adjustments if necessary.

Step 6:Update and maintain

Data and KPI requirements evolve over time. Make sure you update your dashboard regularly to keep it relevant and accurate. Keep user feedback in mind, too, for ongoing improvements.

Steering indicators most frequently used in a management chart

Steering indicators vary according to business sector, company size and specific objectives.

In the finance sector, the main management indicators are sales, gross margin, net profitability, liquidity ratio and debt ratio.

For sales and marketing, we measure conversion rate, customer acquisition cost, customer retention rate, marketing ROI and number of leads generated.

The Human Resources sector will look at turnover, hiring costs, productivity, employee satisfaction and the HR performance index to assess the department’s overall performance.

Operations and production departments will be focusing on overall yield, rejection rates for defective products, cycle time required to complete a product, and efficient use of production equipment.

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