Be Informed: 10 Questions that your Management Information Should Answer

Running a business without good management information is like driving a car with your eyes closed: the chances are that you are going to crash. But what information is useful? What things should you be seeking out on a regular basis? Although businesses vary, there is a core set of management questions that need answered in most businesses on a regular basis.

This is my list of these 10 core questions:

1. How much profit or surplus are we making as a whole?

2. How much profit or surplus are we making on each customer, group of customers or revenue stream?

3. How well are we controlling our margins: on products, projects, revenue streams or by division?

4. How well are we controlling our overheads or fixed costs?

5. What do our customers think about us?

6. What do our staff think about us?

7. What does the future look like?

8. Do we have enough funding or cash?

9. What is causing the changes in our performance?

10. Are we managing our key risks?

Some other tips:

• you will learn more by looking at trends over time than comparing figures to budget.

• forecasts need to be treated with care: to some extent they are always guesses and subject to bias.

• understanding the reasons for changes in historic performance is usually more helpful than putting together erroneously accurate forecasts.

Bellevue Partners can help you design useful management information that will give you control over your business through effective decision-making.

Please get in touch if you would like to talk to us about helping your business.