New York, NY – 9/24/2025 – Financial statements are the backbone of any business, yet too often they are underutilized by leaders who find them too technical or difficult to interpret. According to veteran financial executive and M&A advisor Frank Okunak, the key to unlocking the true value of financial data lies in translating those statements into Key Performance Indicators (KPIs) that drive clarity, insight, and decision-making.
“Financial statements tell you what happened,” said Okunak. “KPIs tell you what it means — and what to do about it.”
With more than two decades of experience as CFO and COO for one of the world’s largest PR and digital firms, Okunak has seen firsthand how even sophisticated organizations can miss opportunities because leaders focus narrowly on financial statement numbers without extracting actionable insights.
From Numbers to Navigation
Traditional financial statements — income statements, balance sheets, and cash flow reports — are essential for compliance, audits, and investor relations. But for day-to-day leadership, they can be overwhelming or too high-level to guide strategy.
“Most CEOs and business owners don’t need to memorize every line item,” Okunak explained. “What they need is a translation of those numbers into a focused set of KPIs that align with their goals.”
Examples include:
Gross Margin Percentage – A clear signal of profitability health beyond raw revenue.
- Client Concentration Ratio – Identifies risk exposure if too much revenue is tied to a single customer.
- Revenue per Employee – A measure of productivity that highlights staffing efficiency.
- EBITDA Margin – A common valuation metric that instantly signals performance to buyers and investors.
- Cash Conversion Cycle – Indicates how efficiently the company turns revenue into cash flow.
“Without KPIs, financial statements are just numbers on a page,” said Okunak. “With KPIs, they become a story about the business — one that leaders can act on immediately.”
Driving Better Business Decisions
Okunak emphasizes that KPIs bridge the gap between financial reporting and strategic decision-making. For example:
- A declining gross margin can signal a need to renegotiate vendor contracts or adjust pricing.
- A rising revenue per employee may reveal opportunities to scale without adding overhead.
- A cash conversion cycle that lengthens warns leaders to adjust billing or collections policies.
“KPIs make it possible to move from reactive management to proactive leadership,” Okunak explained. “Instead of being surprised by year-end results, owners can course-correct in real time.”
The Role in Valuation and M&A
KPIs also play a pivotal role in preparing for a sale or merger. Buyers often evaluate firms based on a handful of metrics — not raw financial statements alone.
“When I advise firms preparing for a sale, I focus on buyer-grade KPIs,” said Okunak. “Private equity firms and strategic acquirers think in terms of margins, scalability, and recurring revenue percentages. If owners can’t tell their story in those terms, they risk being undervalued.”
He notes that aligning KPIs with industry benchmarks also strengthens credibility. “It’s not just about showing your numbers — it’s about showing how you perform relative to your peers,” Okunak said. “That’s where valuation multiples are won or lost.”
Making KPIs Work
For KPIs to be effective, Okunak stresses three principles:
- Relevance – KPIs should directly tie to business goals. “If it doesn’t drive decision-making, it’s noise,” he cautioned.
- Clarity – Metrics must be simple and intuitive. “If your leadership team can’t explain the KPI in one sentence, it’s too complex.”
- Consistency – KPIs should be tracked regularly to identify trends, not just snapshots. “Monthly reviews are critical,” he advised.
Okunak also highlights the importance of visual dashboards. “A one-page KPI dashboard can do more for decision-making than a 50-page financial packet,” he said. “Leaders need a quick, digestible way to see the health of the business.”
A Message to Business Leaders
Ultimately, Okunak argues that KPIs are the missing link between financial reporting and leadership clarity. “Too many businesses are flying blind,” he said. “They either drown in data or avoid the numbers altogether. KPIs change that dynamic. They empower leaders to understand, decide, and act with confidence.”
His message is clear: Financial statements are essential, but KPIs make them actionable.
“Business owners should stop thinking of KPIs as optional extras,” Okunak concluded. “They’re the language of growth, profitability, and valuation. The sooner leaders embrace them, the stronger their decisions — and their outcomes — will be.”
About Frank Okunak
Frank Okunak is a veteran financial and operational executive who served as CFO and COO for one of the world’s largest PR and digital firms. Today, he advises marketing, communications, and professional services businesses on growth strategies, valuations, and successful exits.
