Define the decision first.
Ask what the reader needs to decide. A board, an operating manager and a treasury team need different levels of detail.
Explain the drivers.
Link financial results to volumes, pricing, headcount, collections and other operating measures. Show actuals, budget and relevant trends with consistent definitions.
Close with action.
For each material issue, record the implication, accountable owner and next step. Keep the report concise enough to use in a decision meeting.
Use the report in a decision meeting
- Identify the audience and decision required.
- Explain variances using operational drivers.
- Highlight cash implications and material risks.
- Record actions, accountable owners and review dates.