What is your process of reporting & reviewing business results?

Over ten years ago the world was rocked by a financial meltdown that had not been seen for many decades. An important contributor to this was the unethical operations of some large financial corporations.

We are now experiencing another world crisis with the Covid-19 pandemic. This is having a devastating impact on the economies and well-being of nations around the globe, especially those less well-off  countries.

Small to medium enterprises have the capacity to make a huge difference to the economic, social, and environmental aspects of the world.

As entrepreneurs we have an opportunity to re-shape our economies in a way that will have a positive impact on those around us, now and in the future.

Strategy 6 is about the process of reporting and reviewing your results against the outcomes decided on in:

Strategy 1 - Strategic Intent, and
Strategy 2 – Business Planning.

These two strategies will guide you to identify the returns from the business activity during a determined period.

They will also help to identify the impact the business has had on your personal life and the community.

Reporting and Reviewing your business on a regular basis is much easier when you have defined objective measures or criteria of time, cost, quality and quantity in the major areas of your business operations.

This is one of the key reasons that we promote the Performance Alignment Map for your business.

Advantages of a regular Review and Reporting System

• Creates accountability - what gets measured gets done
• Helps with communication – especially for performance expectations
• Data helps to create clarity and commitment - especially for teamwork
• Data and results help to form a baseline for problem-solving and taking advantage of opportunities/improvement
• Our data scorecard is essential to guide our decision-making

Essential for the success of your results review and reporting is to:

• Have established a regular cycle of review for the financial position of the business, as well as the results from the strategic and operational plans
• Stick to the established process for reporting and the review cycle
• Determine the process for informing key stakeholders about the performance of the business. Including any statutory reporting obligations.

Determine your Business Reporting Scorecard

Depending on your business you may require results scorecards for the following time periods:

• Weekly
• Monthly
• Quarterly

Suggestions for Business Monitoring & Reporting Measures

Please liaise with your certified professionals to ensure your measures are suitable for your type of business.

Some results to consider monitoring are:

❑ Shareholder results - share price, dividend payments and Return on Equity (ROE).

❑ Process results –

• Reliability
• Order processing time
• Product lead time
• Costs of quality
• Timeliness of delivery
• Errors or defect rate
• Inventory turnover

❑ Financial Results – revenue; cash-flow; debtors: ROCE; Profit as % of total income; Net profit margin

❑ Marketing – proposals; market share

❑ Sales – calls and sale meetings; signed contracts; conversion rates

❑ Voice of the Customer – satisfaction; complaints; gained/lost customer accounts

❑ Personnel/employees – staff satisfaction; absenteeism; turnover

❑ Health, Safety & Wellbeing – Numbers of accidents; near-misses; visits to employee assistance program

Review questions could include the following:

Personal:

• Has my business contributed to, or depleted: my personal well-being; my wealth; my relationships; my personal growth and my general satisfaction with life?

Business:

• Has the value of the business improved?
• Have our activities improved the long-term sustainability of the business?
• How have the employees benefited?
• What is the impact of our business activity on our suppliers and/or consumers?

Community

• Have we behaved ethically and in a socially responsible manner during our trading?
• Was the general ‘quality of life’ of our stakeholders raised or lowered by our business activities?
• Did we enhance the welfare and interests of society as well as that of the business?
• What was the impact on the environment from our business operations (e.g. Carbon footprint; pollution; waste)?
• Did we give a positive return to our local community (e.g. involvement in schools; charities; promotion of Equity, diversity and Inclusion)?

Actions to consider:

• Establish a regular cycle of reporting and review for the financial position of the business
• Determine how, when and who will monitor the results of strategic and operational plans?
• Inform staff the review cycle and their role in this process
• Decide how and when you will inform staff of how the business is tracking as well as how this will be communicated
• Ensure you have a structured process for addressing business performance gaps that is understood by staff.
• Include relevant business results and impact on your personal life, and that of the community.

In our upcoming Leadership Arena Program we cover the reporting and review process of your business and include the planning for this in your Strategy 2 Business Improvement Planning.