What is a Management Report?
The gist of creating management reports is to centralize at keeping the managers apprised of the various aspects of business, so as to help them make effective decisions. They solicit data from multiple departments, keeping a track of key performance indicators or KPIs and present them in an articulate way with the help of the tools equipped in the online database your company has invested in. They also showcase the value of your business as the time goes by through the means of divulging operational and financial information. Management reporting showcases insights on company status, encouraging decision-makers to find the right way to make the company grow and to stay and thrive in the competition market.
How to Write an Effective Management Report?
- Set pre-defined objectives and strategies
To begin with, keep in mind that you need to keep an end in mind in order to start the beginning of the report. You need to ascertain the purpose of the report, the key drivers of your business, appropriate pricing, defining success etc. In short you need to include every detail that will help in addressing the needs of the report. Once you know the about’s and whys, it will be easy to determine performance indicators. Don’t proceed unless you have 2 to 3 goals in mind.
- Choose the right KPIs for your audience
It is totally dependent on your audience—on their job function and the level of hierarchy they belong to. For instance, a junior marketing manager would need different data than the head of marketing. An efficient KPI management is important in the process of management reporting. Ponder on the challenges of choosing the right metrics. You need to ask yourself some questions to address the needs of the audience and make the best of the effective reporting.
- Make your report look presentable
The more your report is clear and presentable, the more understandable it becomes to your audience. When it comes to management reporting, remember, “Less is more.” By default, it is always advisable to showcase 3 to 5 KPIs on a report. But that doesn’t mean you cannot display other data, but you must organize a clearly defined hierarchy of the visually appealing report, to give away the most important parts to your KPIs.