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What is a Management Reporting?
Management defines handling and controlling of different team members in the organization which results in achieving the target. Management reporting is a management control system that provides business information or management reporting can be defined as a data needed by a company manager to run the business.
Management Reporting provides an insight on how company is doing, empowering decision-makers to find the right path to increase operating efficiency and make pertinent decisions to remain competitive.
Why do we need an effective management reporting system?
The scope of management reporting is wide. Let’s review the 6 benefits why company need effective management reporting system:
- Constant need of reports for decision making and analysis of trends
- Improves management effectiveness
- Improves responsiveness of each team member
- Improves the percentage of delivering the services of the organization
- Identifying the problem in department
- Implement the best solution
As per the Growthforce article, it states that management reporting can helpful to answer of some CEO level question:
- Am I pricing my jobs, right?
- Who are my most profitable clients?
- Do I have enough cash to make payroll?
- Should I hire more employees? If so, how much should I pay them?
- Where should I spend my marketing dollars?
Benefits of a Good Management Reporting System
It’s important to understand the benefits of good management reporting because unless the knowing the benefits one cannot jump into the planning and writing of good management report. Below are the key points:
- It helps the management to understand the functional areas of an organization.
- Keep track of employee performance regulated and controlled.
- Future decision can be taken with precautions.
- Can give the responsibility to individuals and target is clear.
- It helps the management to prepare the budget.
- It helps the management to maintain the operational efficiency of all the employees.
- It can be used as tool to watch area of weakness and progress in the organization.
- Improves decision-making and efficiency within organization
Best Practices of writing successful management reporting program
1. Set your goals and objective:
For a perfect report, which you will write, you need to start with the end in mind. Before writing you need to ask some question to yourself like:
- Do you know the important aspects of your business?
- How can you tell your pricing is right?
- How can you define success in your business?
- What is the purpose of report in the organisation?
Ask data analysis question to yourself that will help you address the needs of the report.
Once you focus all the data analysis question, it will be much easier to set key performance indicator (KPIs). It helps to move forward and take way to achieve your set target. It will be benefits that you take 2 or 3 goals till end.
2. Measure the right KPIs for your audience:
A key performance indicator (KPI) is only effective if you’re actively measuring it. If company continuously growing with wrong KPIs it will most likely get the wrong behaviour. Whereas putting in place the appropriate KPIs starts with an understanding of value drivers.
With the right KPIs, the CEO or CFO can determine a shared understanding of what should be done and who should do it. Business behaviour keeps on changing so, KPIs monitoring is a continuous process.
3. Tell a story with your data:
Any great story contains visualization and detail. Data is just a collection of numbers until you turn it into a story. Showing reports and dashboards can be overwhelming without adding a narrative to the data. Any great insight explains what happened, why it is important and how you can use it to turn it into something actionable.
4. Make your report clear:
If you are moving further with clear and clean report that will surely helps you to gets correct outputs. In management reporting clarity is a primary objective.
Let’s discuss some basic principle for report design:
- Make sure you are using white space, your colours stand out from each other, and select colours carefully.
- Have a date range displayed next to the data.
- Keep the metrics simple so that everyone who will read the report can understand and ease to use it.
5. Think Digital:
Your ultimate best practice for management reporting is to digest paper-based reports and to become digital. Online reporting software is a great asset for your business, because they provide real-time updates, save money and reduce waste.
This is a true type of report that requires management team to take actionable, data-driven decisions: A high-level overview of marketing performance has been given.
In modern organizations, people have become disappointed with many data sources, time and energy to create reports and total reduction of the organization. But a solid process in which reporting software is Front and Center, your organization will be ready to implement your strategy.
After reporting all the best practices with all these management, you can now create an online report that will help your company leaders to make effective, data-driven decisions.
Abhishek is working as a Web Graphics Designer at EzDataMunch. He is involved in Maintaining and enhancing websites by adding and improving the design and interactive features, optimizing the web architectures for navigability & accessibility and ensuring the website and databases are being backed up. Also involved in marketing activities for brand promotion.