This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.
Every month, managers spend hours preparing reports. They gather figures, check budgets, review performance, follow up with departments and put everything together for management.
But after all that work, there is one important question. Does the report actually tell executives what they need to know?
A monthly report should not be a collection of numbers and long explanations that leave people wondering what actually happened. It should give management a clear picture of how the business performed, what went well, what did not go according to plan and what needs attention.
Executives are busy. They do not always have time to work through 30 pages to find the three things that really matter.
A good monthly report should make their job easier, not give them more work to do.
Start With the Bigger Picture
The first thing executives want to know is simple. How did the month go?
Was it a good month? Did the business achieve its targets? Were there unexpected challenges? Is the business in a better position than it was last month?
This should be explained right at the beginning of the report.
For example, a manager could explain that October was a positive month, with income increasing by 8% and new memberships exceeding expectations. However, operating expenses were higher than budgeted, and membership renewals were slightly below target.
That short explanation already gives management a reasonable understanding of the month.
There is no need to start with five pages of background information before getting to the point.
Tell them what happened first. The detail can follow.
Numbers Are Important, but Comparisons Matter More
Executives need to see how the business performed against its targets.
Reporting that income was R520,000 is useful, but it does not tell the full story.
What was the budget? What was income last month? Was the result better or worse than expected?
If the income target was R500,000 and the previous month's income was R480,000, the result suddenly means much more.
The same applies to expenses, membership numbers, customer retention, service delivery and staff performance.
For example, if a business registered 45 new members against a target of 40, that is worth mentioning. But if membership renewals dropped from 88% to 85%, management also needs to know.
Financial performance is only one part of the picture. Executives also want to understand whether customers are satisfied, whether work is being completed on time and whether the business has enough people to deliver its services.
A report should cover the areas that matter most to the organisation, rather than including every number available.
Explain What Is Behind the Numbers
One of the biggest mistakes in monthly reporting is presenting figures without explaining them.
Executives can see that expenses are over budget. What they want to know is why.
Was it caused by an unexpected repair? Did supplier prices increase? Was additional staff required? Or is the business simply spending more than planned?
There is a big difference between a once-off expense and a cost that will continue every month.
If expenses were R20,000 over budget because five computers needed replacing, explain that. Management can then understand that the additional cost was necessary and is unlikely to happen again immediately.
If membership renewals dropped because follow-up calls were delayed, explain that too.
The purpose is not to find excuses for poor results. It is to help management understand what caused them.
And when performance improves, explain why. If income increased because a new marketing campaign worked particularly well, that is information worth sharing.
Good reporting helps management understand what is working and what needs to change.
Tell Management Whether Projects Are Moving Forward
Most organisations have several projects running at the same time.
There may be a new accounting system being implemented, improvements to customer service, a new website or changes to internal procedures.
Executives do not necessarily need every detail of these projects each month. They need to know whether progress is being made.
Is the project on track? Is it running behind schedule? Has something gone wrong? When is it expected to be completed?
For example, if staff training on a new accounting system is 80% complete and the remaining training is scheduled for November, that is a useful update.
If a database upgrade is two weeks behind because information from the old system needs additional checking, management should know that as well.
A delay is not always a disaster. Sometimes there are perfectly reasonable explanations. What matters is that the delay is communicated and that there is a plan to address it.
Do Not Hide the Problems
No business has a perfect month, every month.
There will be unexpected expenses, staffing problems, unhappy customers, delayed projects and targets that are not achieved.
These things should not be hidden in a monthly report.
Executives need to know what could affect the business and how serious the situation is.
For example, if two experienced employees resign, there may be a risk that important work will be delayed. If outstanding customer payments continue increasing, cash flow could become a concern.
The report should explain what the problem is, what impact it could have and what management is doing about it.
If temporary staff have been arranged while recruitment takes place, say so. If the finance team is contacting overdue customers every week, include that information.
There is a difference between reporting a problem and simply handing that problem over to someone else.
Executives want to see that managers understand the risks and are taking responsibility for dealing with them.
Give Credit Where It Is Due
Monthly reporting can easily become focused on everything that went wrong.
But there should also be room to recognise what went well.
Perhaps the finance team completed the month-end accounts earlier than usual. Perhaps a department exceeded its targets. Maybe a difficult project was finally completed, or customers provided excellent feedback about the service they received.
These achievements matter.
They show management where improvements are happening and recognise the employees who made them possible.
For example, completing month-end reconciliations three days earlier than usual may seem like a small operational achievement, but it means financial information can reach management sooner.
That is something worth reporting.
A balanced monthly report should give attention to both the challenges and the successes.
Be Clear About What You Need
Sometimes the most useful part of a monthly report is a simple request for a decision.
Managers often identify problems and explain them in great detail, but forget to say what they actually need from executives.
If additional funding is required, explain how much and why.
If a decision is delaying a project, explain what needs to be decided.
If approval is needed to appoint another employee, provide the reason and the expected impact.
For example, requesting approval for R35,000 to replace outdated computers before year-end processing is much clearer than saying that the finance department needs better equipment.
It also helps to include a deadline.
Executives should be able to read the report and immediately understand what requires their attention.
Look Ahead, Not Only Behind
Although monthly reports focus on the previous month's performance, they should also prepare management for what comes next.
What important deadlines are approaching? Are there major projects due for completion? Will the business face additional costs? Are there events or activities that require planning?
For example, November may involve finalising the annual budget, completing staff performance reviews and preparing for the year-end closure.
Mentioning these priorities helps executives understand where the organisation's attention will be focused.
It also gives them an opportunity to identify potential problems before they happen.
A monthly report should help management prepare, not just reflect on what has already happened.
A Good Report Does Not Have to Be a Long Report
There is a common belief that a detailed report must be a long report.
That is not necessarily true.
A report filled with information that nobody uses is not adding much value.
Executives need accurate figures, clear explanations, honest updates and practical recommendations.
They need to know whether the organisation is achieving its goals, where performance is slipping and whether action is required.
Before submitting a monthly report, it is worth reading it from an executive's point of view.
Would someone who was not involved in the daily operations understand what happened during the month? Would they know which issues need attention? Would they be able to make decisions based on the information provided?
If not, the report probably needs some work.
A good monthly report should answer three basic questions: What happened? Why did it happen? What are we going to do about it?
Get those three things right, and your monthly report becomes more than another document on the executive meeting agenda. It becomes something management can actually use.
Trending
