Multiplying indicators does not guarantee a better understanding of the business. Relevant reporting starts with a simple question: which decision is this information meant to inform?
Start from the users
Management, the project manager and the accounting team do not always need the same level of detail. Identifying their questions makes it possible to choose readable indicators: available cash, trend in expenses, upcoming commitments or variances against objectives.
Tie figures to a source
An indicator needs a shared definition, an identified source and a suitable update frequency. Consistency between operational and accounting data is essential to avoid contradictory readings.
Explain variances
Presenting a figure without context limits its usefulness. A short comment can state where a variance comes from, distinguish a one-off event from a trend and bring out the questions to deal with at the next meeting.
Keep it simple to read
A few well-defined indicators, a relevant comparison and clear responsibility for updating them can be a more useful basis for management than an exhaustive document that is rarely consulted.
General insight. The content and scope of a reporting pack are defined according to your organisation and your objectives.