The objectives of monitoring, measurement, accountability, transparency, direction and performance have increased their chances of being achieved once we have implemented a production and follow-up routine that we call Results Governance. The first step is to define what will be measured. Some criteria for establishing what to produce:
Less is more.
Fewer reports and indicators are always better because they bring focus and thus make it possible to analyze the basic elements in business development. For the governance training also you need to be ready.
Do not strive for perfection
There is a risk of wanting from the beginning to have indisputable numbers. Accuracy is important. However, it is more than accuracy. it is important to start the calculation and production of numbers. Over time analysis and discussion will certainly improve its accuracy.
Business performance can be monitored via an Income Statement or Profit and Loss Statement and some performance indicators. The Income Statement as the name implies is a report that shows whether or not the revenues generated cover business costs and expenses. A Performance Indicator is a metric that allows an organization to compare its performance against its goals as well as the industry.
The Balance Sheet depicts the assets (assets and rights of an organization) and how they are financed suppliers, government service providers, banks and investors or shareholders.
Assets in excess of liabilities would theoretically be solvent. However, there are two very important points to consider: valuation and liquidity. The correct valuation of assets and liabilities and the correct classification of their liquidity may affect the correct measurement of the company’s solvency. Experts suggest implementing the following routine as part of a results governance cycle:
Establishment of a Monthly Report
The existence of a monthly report requires the existence of a set of standard reports that will serve as the basis of reporting together with a routine of discussion meetings of these reports and the definition of its participants who should be those with the ability to exert influence about the numbers.
A regular results discussion meeting should:
- Be objective and specific. seeking to explain business performance and its variations with objectives,
- Comments should include actions that will be taken to remedy performance,
- In addition, space should be left to discuss other issues that impact the business and are not captured by the defined reports.
Establish a Weekly Report
One evolution after the implementation of the Monthly Report would be to establish a routine of weekly reports. whose function is to make room to make corrections and interventions more immediately. Such reporting may be via the establishment of weekly conference calls or simply via preformatted reports.
This report should include the following elements:
The goal is to monitor sales behavior.at what cost they are being made who are the buyers who are not buying. which products are selling and which are not selling. Comparing this performance with the target and the same period of the previous year would also be advisable.
This block should be listed as the measurable and effective actions that are underway that will affect the development of sales. Other comments would be regarding new product launches or inclusion.
Inform other topics that may be relevant such as market news, competitive development. or others that may impact on the business.