6 Reliable management information is key

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What is the issue?


In difficult times, reliable management information is particularly vital in order to make timely decisions. Companies use the same reporting templates and key performance indicators (KPIs) regardless of the rapid changes occurring in the external environment, drawing on overdue, out-of-date information and living along the lines of “this is way we have always done it.”


What do I need to be aware of?


Especially in uncertain times, it is more important than ever for management teams to ensure decisions are made on a timely basis. KPIs and critical reporting templates should be reconsidered and revised in light of changing circumstances. Increased emphasis should therefore be placed on the following:


  • Managing a reduced number of really reliable parameters – less is more
  • Accelerating reporting processes in relation to the new or amended critical KPI’s
  • Implementing a rise in frequency of reporting new or amended critical KPIs
  • Increase communication of critical KPIs to the board and to senior management teams
  • Cash and liquidity indicators
  • Forward-looking indicators
  • Enhanced reporting on areas perceived to be of increased risk to the organisation
  • Concentrating on those areas that really make a difference – increased accountability of everyone associated with new KPIs.

What questions should I be asking myself?


  • Which areas need to be monitored carefully?
  • How often do I receive information on these critical areas? When do I receive it?
  • What is my degree of confidence in the information I receive?
  • What are the key risk areas surrounding our business? How should we monitor our performance against these risk factors?
  • Is my business focused on cash management?
  • Is the senior management team updated frequently enough in order to make the right decisions?
  • How can I speed up receipt of critical information, i.e. before it is actually out-of-date or irrelevant?
  • Have I reviewed our reporting templates in light of recent changes in my business or the external environment? Does the information still make sense?
  • Are we only looking at the past? To what extent are our systems geared to providing useful information about the future?
  • Thinking of the last big issue I had to deal with – could a strengthening in focused reporting of key risk areas have helped me identify or mitigate it earlier?

How can PricewaterhouseCoopers help?


Drawing upon a network of expertise and the experience of our professionals, we can help you prioritise the information you use to make your key decisions in such turbulent times. Check the column on the right for details of who to contact and for further information.