Management Information – do you pass the test?
MI or Management Information is vital to running, developing and growing a successful organisation.
So what is MI?
Management Information is the lifeblood of the business, or it should be. It should take the form of analysing both financial and non-financial aspects of the business and allows the user to quickly and easily understand the performance of the business or aspect of the business into which they are concerned or responsible.
Is your MI sharp and to the point?
How is it used?
Traditionally this took the form of quarterly or if we were lucky, monthly management accounts comprising of a Profit and Loss account, Balance sheet and in exceptional circumstances a Cashflow statement! The problem was that this information was often provided long after the event and performance dating back 2 or 3 months was irrelevant, especially in a fast moving market and economy. Times have changed and continue to do so. We no longer help businesses prepare the bare minimum of information to indicate the success or failure of recent months. Instead it is a rather interactive affair, whereby our clients can access data in a fast, timely and relevant way and presented in an interactive graphical and tabular format to ensure the end user understands the data being presented.
Who says it is important?
MI is important for business owners, management and shareholders to ensure they understand the current position of trading performance and to assess the impact of their day to day decisions. It is also important for external stakeholders e.g banks, to enable them to assist with their role in either lending or supporting the organisation.
Liam Betts (Managing Director, Gasway Services Limited)
“Gasway understand how crucial Management Information is to building a sustainable and profitable business. Key Performance Indicators assist by providing essential information to enable and empower our managers to understand and deliver business needs including forecasting, profit, cost and sales analysis to mention but a few. The ability to interrogate our IT systems and company methodology is vital and employing the appropriate expertise helps to deliver exactly what is required both in terms of people, processes and procedures.”
Gordon Duffy (Clydesdale Bank, Norwich)
“MI is probably more important than the business itself………..too often business data is out of date, making it impossible to discuss current trading and the future”
Mark commented “Whilst cash is often viewed as king, there is a real danger that running the business based upon the current cash balance does not provide you with information on the current performance, as losses on products and services take time to crystallise”. If you sell something at a loss today, it is only realised in cash terms once you have paid for the raw materials/labour and have been paid for the sale.
Test your MI?
Does your MI pass our quick 5 tests below? Do you do the following?
We have launched our FREE “management information health check” as part of our innovative research project designed to support local businesses. For more details click here.
Please contact us for a free review of your MI, by emailing us at enquiry@mintconsult.com or calling us on 0845 805 7390 to arrange a free no obligation exploratory meeting.
We are happy to sign a non-disclosure agreement and work with you to see if we can help your business.
