(7) KPIs and Management Information: Are you getting what you need? On a timely basis?

Let’s think of your business as a money-making machine. What aspects of the machine do you need to be monitoring for the business to thrive?

There are 3 key aspects, all of which support your decision-making:
1. KPIs – frequent reports of key indicators across the business, both “results” and “drivers”
2. FORECASTING – model including cashflow to assess scenarios, spot upcoming problems, and derive forecasts and budgets
3. MANAGEMENT ACCOUNTS – monthly and/or weekly picture, with comparison of performance against forecasts, and analysis down to the detail

Many businesses do not have a full set of this information available on a timely basis. As a result forthcoming problems are not identified, or decisions are made without appropriate knowledge. Running a business like this can be very uncomfortable.

Indeed people who deal with failing businesses despair at how often basic information is missing. So good information can be a matter of survival as much as helping the business to thrive.

Are you comfortable that you are getting the key information you need, when you want it?

IF YOU WANT TO IMPROVE YOUR MANAGEMENT INFORMATION:

There are three key steps:

(1) Defining information needs

The first step is to define what KPIs and management information you and your senior colleagues need, when and in what format. Responsibility needs to be clear for each level of management in each area.

As “what gets measured gets done”, it’s best to define what is reported in the context of your strategic goals and critical success factors (CSFs) if these have been defined.

(2) How should information be provided?

These days a variety of software exists to collect, report and model the information you need. Often referred to as “Business Intelligence” (BI) tools, these range from Excel for simpler situations to mid-range systems, to sophisticated corporate systems.

Can your current tools be used? Or would it be more cost-effective to use a new tool? What’s available that’s suitable for your size and type of business? Would an in-house or an internet-based SAAS solution be more appropriate?

(3) Implement the solution

Turning ideas into reality is an art that needs to cover technical and people aspects. In-house staff need to be closely involved. But help and guidance from outside can be a great help in achieving a worthy result in short timescales.

HOW CAN CAMWELLS HELP?

Camwells has many years’ experience of helping companies with these actions and questions. Clients have appreciated the independent viewpoint and commercially-minded experience. This helps to define appropriate metrics, identify suitable systems, and implement a working solution quickly.

Working with CEOs, MDs an FDs, “Timely, thorough, helped enormously” and “Couldn’t have done it without you!” are typical comments.

NEXT STEP

If you would like to improve your management information, do give me a call to discuss without obligation.