An integral aspect of reporting is making financial and statistical data available to management that is both timely and accurate. The quality and content of management information provided to stakeholders is critical to making the best business decisions. It is important to focus on delivering meaningful and relevant information to the decision makers. However, information resides in an ever increasing number of systems and databases. The fundamental issue is how to provide the right information at the appropriate time to manage the business.
- Identify sources of data
- Determine if all essential data elements are available
- Automate information gathering process
- Leverage off of the infrastructure that is already in place. The capital expenditures may have already occurred that assist with sharing pertinent data.
- Determine consistency and dependability of data
Define report content
- Obtain input from decision makers to establish KPIs
- Know and understand the relevant business drivers and create dashboards
- Create action plan to prioritize refinement and development of reports
- Develop reports that concisely present information
- Establish reports that measure performance and monitor results
- Provide meaningful and timely information so management may most effectively manage the business
- Evolving process that requires communication between staff and management
Successful implementation of management information reporting provides stakeholders with the opportunity to understand and gain meaningful insight into business operations and profitability. Decision makers are provided with the tools to see emerging trends, identify major sources of income, as well as remain competitive in selected market places.
An objective of management reporting is to ensure performance measures are transparent and clear accountabilities are communicated to employees. Discussions associated with performance need to be constructive and open. Metrics chosen for performance indicators need to align rewards with promoting appropriate actions. Developing effective management information reporting results in a winning combination for the business, stakeholders, employees and customers.