APPLYING NEW KNOWLEDGE

Building and expanding a functional reporting system is one thing; using it correctly is another. Often, numerous reports are designed for specific questions and then regularly updated – even though the original question has already been answered or entirely new questions have arisen. The result is a flood of business reports that offer a large number of key performance indicators and information, but without addressing current needs.

But do the reports really align with the company's fundamental strategy?

Do target/actual analyses help to flexibly map your business and enable a view to the future?

Reporting challenge

Companies often have a multitude of reports, lists, and detailed summaries. In many cases, however, much of the effort is wasted, as only a report that is actually read is worthy of its purpose. The work is truly respected when the reports are not only read but also used to inform decision-making, for which they were originally intended. A target/actual comparison by sales territory and product category quickly leads to conflicts with marketing expenditures when deviations from the planned figures arise. These are usually silently accepted and "corrected" with the next set of planned figures. This is precisely where we come in. Depending on the situation, annual planning is simply no longer up-to-date. The planned figures for December of the following year are often more "rolled the dice" than precisely determined 14 months in advance. A rolling planning system is also economically feasible for most medium-sized businesses. This allows you to recognize the impact of short-term changes in delivery times and prices early on. In this way, you maintain your responsiveness and retain, or regain, the decision-making ability you have come to expect.