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Management Report Systems: Things Every Manager Should Know

To successfully track your business’s performance, you should have goals set in place to help employees understand what they’re working to accomplish. You can do this by creating a management reporting system. This reporting system should clearly detail your company’s goals and accurately track the progress you’ve made for meeting these goals.

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What is management reporting?

Management reporting systems are databases that store your company’s performance information. Rather than tracking the overall performance of your entire company, you can use management reports to set strategic goals for each employee or department and to track your progress towards meeting these goals. This helps you and your company understand where to make improvements and what your business is succeeding at.

To build an efficient management report, you should track the performance of diverse elements of your business. A management report is also an effective document for storing important employee and client information for you to quickly recover when necessary. The elements you should include in a management reporting system are:

  • Goals for each employee
  • Status of how well employees have met their goals
  • Overall efficiency and productivity of your company
  • List of clients and active accounts
  • Client-based goals
  • Objectives and goals for your company’s financial plan

Related:How to Create a Performance Improvement Plan

The key elements of a strong management report

Now that you understand what a management report is, here is a basic primer on what its key elements should be and how they should be structured for maximum effectiveness. These elements include:

A clear, precise title

The title of a management report should rapidly identify what part of your company it applies to and in what sense. This will make categorizing your management reports easier and retrieving them later a much quicker process.

Contextualization within your organization

Your text should be as concise and objective as possible while easily explaining what relevance the management report in question has to your organization. It should explain right away what parts of your company’s operations, key performance indicators, metrics or staffing are being addressed.

A purpose summary

This segment of quick overview text makes categorizing and rating the importance of a given management report much easier. It allows future management staff to rapidly understand what relevance any report has for them and your company when digging through your management reporting system.

Clearly stated objectives

Your management report should not only state its analysis clearly, but also run through its objectives. Management reports should always be written for specific reasons, so they must have straightforward objectives that can measurably be achieved and analyzed afterwards in future management reviews.

Results and conclusions

Your management report should also have a clearly laid out concluding section with its findings and important observations. This information should be based on objective metrics, including references to the data that backs up the conclusions you’ve come to.

How to write a management report

The management report you create should provide value to both you and your employees as it allows a better understanding of how well you’re meeting goals. Follow the basic steps below to learn what effective management reporting should include:

  1. Determine your company’s objectives and goals
  2. Meet with employees to set individual goals
  3. Learn what KPIs you need to track for your company
  4. Regularly track your company’s progress
  5. Meet with employees who are struggling with their goals
  6. Present the results
  7. Determine your company’s objectives and goals

Before writing your management report, analyze the goals of your company. Measure productivity levels, employee engagement and financial or budgetary metrics. As you build on these or set new targets for them, your management report helps keep a record of how well the objectives of your business are being met. You can then develop a strategic plan to help your company better achieve them and measure their progress.

1. Meet with employees to set individual goals

After setting your company-wide aims, hold meetings with employees to establish their personal contributions to these goals. Help them set their own metrics and desired outcomes, and use your management report system to track how well they’re meeting each one. If you see that they’re making strong progress, motivate them to continue achieving more with incentives and references to their performance based on your management reporting.

2. Learn what KPIs you need to track for your company

Track the progress for departments by creating key performance indicators for each one. Tailor each goal and KPI specifically toward the needs of each department. For example, to track the marketing department’s indicators, you can measure the success of their campaigns based on how many sales they have brought compared to their costs or conversion rates from prospects to customers.

Once you have tracked various KPIs for different departments, you may gain a better understanding of your company’s performance. Other metrics you can set for your business are:

  • Efficiency levels: How quickly departments submit their work, positive feedback from clients on different projects, how many tasks employees or departments complete each day
  • Employee engagement:Employee turnover rate, participation in company events, percentage of employees praising team members
  • Financial goals: Gross profit margin, earnings before and after tax payments, ratio of liquidity

3. Regularly track your company’s progress

After building goals and KPIs for each department, you should regularly monitor their status and changes. Try to check these every week or two to learn if your company is on track with its goals or if you should make improvements to increase progress. Regular tracking through hard data helps you understand how well your company has been performing and if you should make changes within your organization to keep it at optimal performance.

4. Meet with employees who are struggling with their goals

If you see employees struggling to meet management reporting goals, hold meetings to inform them of their progress and help them create a plan to achieve what they’re aiming for. If there are low-performing departments, you can also meet with them to learn if you can provide any resources to help them work better.

This can also help you realize if the original goals you set for your company are realistic enough or if you should adjust these goals to better suit the needs of your employees. If you set lower goals, you can keep adjusting and enhancing them as time goes on to challenge your employees and help your company’s performance levels increase.Management reporting systems are not setting company rules and aims in stone. They’re fundamentally organic, changeable documents.

5. Present your results

Once you have obtained results from your management report, present these to employees and stakeholders. Find the significant points of performance data from your report and input them into a spreadsheet. From there, create graphs and charts comparing past and present metrics and explaining the significance of each.

Showing these results using numbers and percentages helps employees understand how their performance contributes to the company overall. It also allows stakeholders and investors to know how well your company is performing and if their investment is worthwhile.

Management report systems FAQ

You’ll find below some frequently asked questions regarding how to operate and create management report systems:

How long does it take to build a management report system?

Depending on the size of your business, creating a management report system can take a few days to a week to fully implement. Meet with other supervisors and managers to determine department and company goals and receive feedback before building this management system. You should also meet with employees or assign managers to meet with employees to determine their goals.

Should I use automated software tools to create and run my management reporting system?

Using software to run your management reporting system will help you create reports that are easier to administer and more versatile for organizational updates. Multiple software applications exist on the market for data visualization and report management.

How should management reports be written?

The fundamental goal of a well-created management report is to explain metrics and aims clearly with language that’s easy to quantify. This means avoiding vague phrasing, ambiguous goals or text that’s too dense. However, your reports should also have a narrative feel that helps readers engage with what they’re aiming for. Using visuals and even colorful language to contextualize concrete data or metrics may be useful.

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