An introduction to management reporting systems
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 a management report system to set strategic goals for each employee and department and track your progress toward 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 performances of different elements of your business. A management report is also an effective place to store 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
How to write a management report
The management report you create should provide value to both you and your employees as it allows you both to better understand how well you’re meeting goals. Follow the steps below to learn how to write an effective management report system:
- Determine your company’s objectives and goals
- Meet with employees to set individual goals
- Learn what KPIs you need to track for your company
- Regularly track your company’s progress
- Meet with employees who are struggling with their goals
- Present the results
1. 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 goals. As you build these goals, your management report helps you analyze how well these goals are being met. After you build your goals, develop a strategic plan to help your company better achieve these goals.
2. Meet with employees to set individual goals
After setting your company-wide goals, hold meetings with employees to establish their personal goals. Help them set goals for and use your management report system to track how well they’re meeting each one. If you see they’re making strong progress, motivate them to continue achieving these goals along the way.
3. 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 KPIs, you can measure the success of their campaigns by tracking how much customer awareness the campaigns brought and conversion rates from prospects to customers.
Once you have tracked various KPIs for different departments, you gain a better understanding of how well your company is performing. Other KPIs 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
Related: How to Reduce Employee Turnover
4. Regularly track your company’s progress
After building goals and KPIs for each department, you should regularly monitor the status of each goal you set. 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. Regularly tracking goals and performance helps you understand how well your company has been performing and if you should make changes within your company to regularly keep it on track.
5. Meet with employees who are struggling with their goals
If you see employees struggling to meet these goals, hold meetings to inform them of their progress and help them create a plan to better meet these goals. If there are departments performing lower than expected, meet with them as well to learn if there are any resources you can provide to help them perform better.
This can also help you realize if the original goals you set for your company are more difficult to attain and 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.
6. Present the results
Once you have gained results from your management report, present these results to employees and stakeholders. Find the significant results from your report and input them into a spreadsheet. From there, create graphs and charts comparing results and explaining the significance of each result.
Showing these results using numbers and percentages helps employees better 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
Below is a frequently asked question 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 as well.
Once all goals are made and leadership has decided what to track, submit your first draft of the management report to other leadership members and possibly stakeholders to receive feedback. You can then announce the management report systems to employees and team members so everyone understands what is being tracked what goals to meet.