Worst management reporting mistake ever: Recently we’ve experienced consequences on management reporting not yet seen. Here is the story.
Management reporting is highly sensitive to many problems in gathering data, converting them to information and knowledge. Problems are mostly laying in business intelligence tools environment and wrong conceptual approaches toward knowledge processing. Many of this problems exist in many companies. They are “natural” and part of companies.
But, one recent mistake made by management in one particular company outranked all current “natural” problems mostly due to lack of knowledge and insufficient analyze of consequences of their decision.
Decision was to process and gather all financial data through ERP system and to deliver information to Management Information System in bulk. Further, other part of decision was to process all non financial data in separate systems like data warehouse, business intelligence solutions and deliver information to Management Information System separately through other information flow. Intention was to process financial and non-financial data independently and then to gather them for Reporting purposes in Management Information Systems and then to publish performance indicators toward all relevant participants like Bord, Supervisory, Audit and similar.
It is simple, two separate projects will process and prepare key performance indicators separately. All seams perfectly clear. Read the rest of this entry »

