Reporting and Key Performance Indicators (KPI’s)
You've probably heard the famous Peter Drucker quote " "If you can't measure it, you can't improve it." Just knowing what is going on in your business enables you to improve your business efficiency and performance in many areas.
Research has shown there is a clear correlation between the frequency of reporting and business success.
|Frequency of Reporting||Business Rate Survival|
|Monthly or more||80%|
These days with modern, low-cost semi-automated software available there’s no excuse for poor systems or reporting, yet many business owners operate completely in the dark, with no meaningful business information or management reports available to better manage their businesses. On the other hand, I meet many clients putting up with reports from their accountants so detailed and complicated they just don’t understand or even bother to read them.
The best compromise is to focus on your KPI’s which monitor the things that MUST go right for your business to be able to deliver your core products or services in a cost-effective manner which meet or exceed your customers’ needs, which are called your Critical Success Factors. These are few in number so it’s possible to restrict the reporting to 8 or 10 of these Key Performance Indicators.
I can help you with simple to understand management-by-exception monitoring and reporting, so vital to the continued success of your business or organisation.