Every business thinks it’s running efficiently until it hits a snag. Big or small, the issues organisations face are tough to foresee. Management reporting can help.
Management reports offer business leaders an analytical perspective of their internal personnel and processes. Using key performance indicators (KPIs) and other data, the statements attempt to provide actionable steps businesses can take to improve decision-making from the ground up.
What’s Included in a Management Report?
Goals and preferences differ by companies, but the data contained within a management report is fairly standard across the board. The final statement will often take a closer look at the following:
- Budget: How did the organisation manage its yearly budget from quarter to quarter or compared to the previous year?
- Cash flow: How much money did the business bring in vs how much did it pay out?
- Wage-revenue ratio: How much is the business spending on wages vs how much staff earning from a sales perspective?
- Staff efficiency: How productive is the organisation’s staff on a daily, monthly, yearly basis?
- Productivity: Which contracts/clients are increasing profitability for the business?
Employees who feel supported by management are more likely to perform at a high level.
Do you think your organisation will benefit from management reporting? To ensure the feedback you receive is helpful and outlines clear action items, there are a few best practices your company should take:
Make It Regular
As with almost everything, when it comes to management reporting, practice makes perfect. While taking the initiative to complete this data-driven insight is a good first step, it’s imperative that business leaders make the practice a frequent occurrence. With regular reporting, organisations can monitor their improvement across various results. How much did your organisation improve internal efficiency from Q1 to Q2? What resources or assistance can management offer employees to keep this number on the high side?
With management reporting, organisations can not only create and implement a business strategy, but they can alter the plan to change course and correct if particular actions aren’t getting positive results.
Make It Clear
Every member of your company has his or her own set of duties, which impacts the outcomes of the business as a whole. So while it’s important that management reporting looks at the entire organisation, it’s even more imperative for the data to focus on the more granular details.
To truly improve company outcomes, management reporting should have a clear set of goals and applications for every area within the business. Success isn’t possible unless all team members and executives have access to the report, know what needs development and understand how to achieve that advancement.
Make It Collaborative
Although each department and its associated team members will play their own role according to a management report’s outcomes, teamwork is critical for long-term effectiveness. Company leaders should make it known that accomplishments have a domino effect; one areas actions impact another and favourable results demand collaboration.
Stakeholders have the ability to improve the likelihood of achievement by actively motivating their workforce. Employees who feel supported by organisational leaders and their peers are more likely to perform to the best of their ability. The management report itself should act as a document the entire workforce can look to for inspiration and methods of improvement.
Ready to get started? DFK Crosbie is the partner you need when it comes to management reporting. Offering biannual, quarterly or even-more frequent analysis of your business, we’ll work with you to understand and overcome any barriers you may be facing. Contact us today.