Monthly Reporting on Organization Performance

Abstract

The paper presents a new comprehensive monthly report system hypothesizing two one-screen summaries:
1. Financial Summary: Key profitability, balance sheet, and cash flow data, including taxes.
2. Operational Summary: Key performance indicators (KPIs) for critical stakeholders including quantitative output, quality, efficiency, compliance, learning and growth, and influential factors.

The reports include forecasts for up to two fiscal years. CEOs, directors, and managers may find it easy to monitor organization performance using the standard report.

The paper proposes hypotheses on a governance framework including the following features:
• The CEO selects a centrally placed report coordinator to develop the monthly report system.
• The report coordinator develops an efficient and secure system using budgets or targets, scenario planning, and forecasting.
• The report coordinator consults with division managers to provide comments on significant variances in advance of monthly review meetings.
• CEO, directors, and managers meet monthly to review report data and comments.
• The report coordinator records minutes of agreed actions in monthly review meetings.
• Accountants reconcile the financial and Operational summaries with annual financial reports.

The paper draws on findings of respected research studies on long-term strategy issues, reports of three major accidents, and professional standards. It is an innovative approach to contribute to better working relationships with stakeholders and mitigate losses from significant disruptions.

Readers may refer the paper to their CEOs to evaluate whether the hypotheses in the paper are appropriate for their own organization. The author would welcome comments and reviews sent to the email address included in the contact details below.

Keywords: business performance, non-financial indicators, stakeholders, cash flow, monthly reporting, forecasting, governance, key performance indicators