In dynamic markets with short product life cycles, management requires recipient-specific and management-relevant information in the most condensed form possible at increasingly shorter intervals. This is critical to success in order to be able to make well-founded, targeted decisions based on increasingly complex circumstances.
Development of a company-wide reporting system
In practice, there are often numerous obstacles to setting up a company-wide reporting system. Decision-relevant information is often not available or only available in insufficiently reliable data quality or can only be provided with a great deal of manual effort. Due to the high level of resources tied up in data preparation for reporting and the tight time constraints, in-depth and value-adding commentary on the figures is often neglected.
Different divisions, departments or subsidiaries consciously or unconsciously use different key figures and management approaches. Different interpretations and inconsistencies are the result. Undefined specifications and responsibilities lead to uncontrolled production of "grey reporting" and the increase in unstructured data leads to information overload. The result is a divergence between the demand for information, the need for information and the supply of information, which can have far-reaching consequences for the company's success.
Potential of effective and efficient management reporting
The following measures and recommendations for action are seen as critical to success:
Align your reporting consistently with management-relevant content and support your statements visually
Report content should be consistently aligned with the company's management logic. An analysis of the company drivers critical to success should therefore be undertaken at the beginning and be at the center of the development of targeted management reporting. The introduction of segment reporting and consistent profit center as well as cost center structures generate additional stringent and company-wide views and create management transparency. In addition to variance analyses and actual data, future-oriented outlooks and alternative courses of action should also be shown in the reports.
In addition, the visual presentation of data in the form of tables and graphics is becoming increasingly important, as it supports the quick and intuitive comprehension of information in the reports in the best possible way.
Clear responsibilities and a recipient-specific report structure anchor efficient and effective reporting in your organization
In addition to aligning reporting with the specifics of the company, the individual (internal) report recipient or decision-maker is crucial for an effective and management-relevant report structure. Clearly defined key figures, specifications and responsibilities for the preparation of reporting as well as uniform accounting standards and harmonization of accounting strengthen the comparability of the figures and create transparency in the database.
Automate your reporting processes and rely on the use of innovative technologies
The use of new innovative reporting technologies, such as (mobile) self-reporting, big data and predictive analytics, offer new and in-depth analysis options, particularly for ad hoc queries, and can generate decisive competitive advantages. However, dealing with these new technologies also presents new challenges. Structured information management and the intelligent use of available information are becoming crucial success factors. The central management of master data enables stringent and high-quality reporting. In addition to the reliability of master data, ensuring high booking quality is a key success factor.
Integrated management reporting with WTS Advisory
WTS Advisory provides you with comprehensive support in setting up or realigning an effective, efficient and future-oriented management reporting system. Depending on your initial situation, we will help you carry out a report inventory and an analysis of your current reporting processes and systems. Or, based on our expert knowledge and our best-practice approaches, we will develop a top-down reporting target picture for your company. With our qualified specialists and process experts, their technical know-how and our partner network, we provide you with comprehensive support in deriving and harmonizing a targeted and clearly defined reporting system and establishing a single point of truth as the basis for efficient reporting. We use the latest technologies, such as SAP S/4HANA, to set up a centralized and harmonized financial system (Central Finance) and modern BI solutions, such as Jedox, to create visually supported reports.
Please do not hesitate to contact us if you are interested or have any questions.
