1 THE EXECUTIVE’S PROGRAM SESSION 8 HOW TOP EXECUTIVE GIVE AND USE REPORTS
Purpose:To
learn why and how to top performing executives get, use and deliver reports. Learning Objectives:To learn… • Why reporting matters • What good reporting and reports look like • How to receive and deliver executive reports 2
PURPOSE AND LEARNING OBJECTIVES
AGENDA 1. Orienteering and recap 2. Why reporting matters 3. What good reporting and reports look like 4. How to deliver and receive executive reports 5. Breakout 6. Summary, reflection and assignment 3
SECTION 1 ORIENTEERING 4
THE 5 HABITS 5 Mindset Your morning routine Practice Learn → do → teach Feedback Coaching Focus Your plan. Time Management Your calendar Discipline = Freedom
HOW TO THINK 6 Supplies The Machine Market Thinking that your business is the product Technician Entrepreneur Manager You should be thinking different about being a successful entrepreneurs – that your business is the product.And build management muscle!
20 StatementGuidingyears Vision, Operatingmodel,BusinessValues,Strategy,Mission, model Used morningtostrategicinputonboarding,duringtotheplan,readintheto get you energized 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 7 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs Monthly Mgt. Reports TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings Monthly Mgt. Meetings The LegendMonday&Friday WIR
WHAT WE ARE BUILDING 8 ExecutePlan Organizational Structure For organizing CEO Operations BU Division BU BU BU Admin Position Agreement For unit managers Role and Purpose (why) Accountable for List of StandardsResponsibilities(KPIs) Standard StandardsPersonForProcedureOperatingfunctionsStepsAccountablePeopleResponsibleateachStepKPIs Battle Rhythms For accountability Meetings Reporting / Targets A Planning GenderQuarterlyStrategicSystemPlanAMP-OKRs-OKRsMonthly-KRsWeekly-LegendDaily-Calendarconsiderations should be included at each stage, from ensuring a diverse team develops and is included in the strategic plan, to ensuring diversity in the organizational structure, the standard operating procedures and reporting/targets.
Meetings don’t have to suck! Always have: Purpose, Outcomes & Agenda 9
Orchestrate Execution Meetings are the battle rhythm for execution
ORIENTEERING: STEP-BY-STEP
Intro to Execution Build your binder! “I should write that down.” Write SOPs. They are the treasure. Plan + Organized Team + PAs + SOPs + Battle Rhythm = Results!
Meeting Run great meetings! Use them to drive execution. Use meetings to drive execute. Have P, O and A for every meeting.
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Start with your Guiding Statements, and KISS and use it (Coffee Stains) to set your annual plans.
ManagementTeams
…
Have an org chart and use it to organize your company. Write PAs for those connected to you (your management team).
SessionTopics
Governance
What I would expect you to do
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The AMP Write down you AMP. Look to the Left! Strategic plan is the input. Use the AMP to set quarterly and monthly OKRs. Chop up your goals into bite-size work that ultimately becomes weekly projects and I Musts.
The Habits Have a morning routine! Use your calendar. Set 3 “I Musts” each week and map them to your calendar.
Strategic Planning Write down your 5-year plan
Have a diverse group with authority (ideally a board) to give you feedback and holds you accountable to your plans. Ask for their feedback! Follow your own rules set the example. Everyone is watching you.
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The Exec’s Program Theory With a little planning and disciplined execution, you have a huge competitive advantage in the market.
QUICK POLL YES, OR NO? 13
ASSIGNMENT 1. Use your calendar: Set your three I Musts for the week and map all your time to your calendar. Set one of the I Musts to work ON the business. 2. The ON the business I Must:Take three hours to write down your meeting battle rhythm: for the year, quarter, month, and week.What are they, who attends, what is the high-level P,O and A. Use a simple table.And prepare a 3 min speech about what you have implemented at your company based on the program, and the change it is having. 3. Submit your meeting battle plan via email to gain acceptance into the next class. 14Proprietary and Confidential to RENEW LLC
15 Section 2 Why Reporting
How are you doing? How do you know? 16
FITBIT DASHBOARD 17
Am I a “good” executive? 18 Reports
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19
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Accountability: Responsible for the outcome, not just the task(s).
Good outcomes are clear and measurable.
Accountable organizations, measure.
LINKING REPORTING TO ACCOUNTABILITY
Responsibility: Responsible for tasks. Sometimes multiple tasks deliver an outcome.
20 Many trust issues arise with shareholders as a result of poor communications and poor reporting by management.
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“If you don’t measure it, you can’t manage it.” ~Peter Drucker
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~Peter Drucker
“Management is doing things right; leadership is doing the right things.”
23 Sidebar Gender-Smart Reporting
GENDER SMART REPORTING All data in your management system: Sex-disaggregated data is key for steering the company and decision-making ➔ Make sure all your key data is disaggregated by male and female (i.e., jobs, pay, recruiting, promotions, management positions, shareholders) ➔ Use the disaggregated data to see trends, risks and opportunities 24
and ultimately
time • Disagreggated
allows you to see the business case of actions you take 25
you cannot see
–without
GENDER INDICATORS and timely internal reporting is key to steer towards reach targets with timely and accurate reporting perform better regular reports, risks and in data also
Remember: • Data
• Companies
opportunities
EQUALITY
your
GENDER EQUALITY INDICATORS Advice: • Focus on a good number of metrics that add value to your monitoring and decision-making • Take advantage of impact metrics that have been harmonized across the investor community to make reporting simple and comparable 26 This is technical! Don’t be hesitant to ask for assistancehelp.Technicalmaybeavailable.
KPIS HARMONIZED ACROSS INVESTORS 2X Criteria linked to IRIS+ • IRIS+ standard for impact management and measurement • Global Impact Investing Network (GIIN) • Global reporting standard ➔ Harmonized across investors • + Useful for internal monitoring 27
IRIS+ METRICS ALIGNED WITH 2X 28 2 8
IRIS+ METRICS ALIGNED WITH 2X 29 Policies
CASE STUDYFinancial Access Commerce andTrade Services (FACTS) Supply chain financing company in East Africa (Uganda & Kenya) 30 Priority: ➔ Improvementplan Priority: ➔ Improvementplan • Relevant policies in place • Communication of policies to be strengthened • Gender equality strategy & action plan in place • 25% women in top management team • 50% women as senior managers • No women on the board ➔ Action plan towards gender balance in place Internal reporting on underlying metrics allows the company to prioritize actions and steer towards targets • 70% women as employees • Areas of improvement: o Career opportunitiesadvancementforwomen o Delegation of more decision making power from expatriate to local staff • 33% women-owned client companies • 70% women-owned supplier companies • Sex-disaggregated data is collected
REPORTING + GE INDICATORS:ADVANTAGES 31 Internal: • Provides measurable targets • Dramatically improves monitoring • Allows you to track progress • Allows you to steering problems and pursue opportunities • Enhances timely and accurate decisionmaking • Allows you to see your own business case statistics! External: • Dramatically improves investor relations • Strengthens branding • Moves you on to the international stage (ESG factor) • Attracts talent • Is part of certification / awards • Opens the door for considerable capital
32 Section 3 What Good Reporting Looks Like
Data in Analysis out
WHAT ARE MANAGEMENT REPORTS? Clear presentation of operational and financial metrics, and the analysis of what those numbers mean. 33 ## #
GOOD AND BAD REPORTING 34 Late with Errors Timely and Accurate
20 StatementGuidingyears Vision, Operatingmodel,BusinessValues,Strategy,Mission, model Used morningtostrategicinputonboarding,duringtotheplan,readintheto get you energized 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 35 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs Monthly Mgt. Reports TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings Monthly Mgt. Meetings The LegendMonday&Friday WIR
QUESTION:WHAT? WHAT REPORTS DO I NEED? 36
CEOManagementTeamBoardShareholdersAccountability Reporting and Governance HOW TO SEE REPORTS 1) CEO’s report to the Board – “Doing the right things?” • Are they executing the company’s plan? • Are they making progress against AMP Goals and Budget (TvA)? • Used to make strategic decisions (management, resources, direction) • 10 slides and 2 hours of briefing 2) Management’s report to the CEO –“Doing things right?” • Are they executing their unit’s plan? • During monthly management meetings • Progress against AMP OKRs; Budget TvA; Quarterly OKRs • 3-5 slides and 15 – 30 min per manager 37 Proprietary and Confidential to RENEW LLC
HOW REPORTING FLOWS 38 CFOManagement Operational Activities Financial Activities Op KPIs (PA, SOPs) Financial State. & KPIs ManagementReport FinancialReport CEO Report AMP Budget Board Report Steps in the SOPs Accounting Management “Do things right.” Leadership “Do the right things.”
KEY REPORT 1: QUARTERLY BOARD REPORT 1. Admin: Opening, sign minutes, review next steps from last meeting 2. Status of AMP goals TvA QT plans 3. Budget TvA and variance analysis 4. 13W Cash Flow 5. SWOT (if necessary) – if new developments in the market or issues at the company 6. Risks and mitigation strategies 7. QT+1 Plans 8. Financial forecasts (13-week CF) 9. Requests and approvals 10. Next board meeting 39 PlansProgressNeeds Reminders • No surprises • Be honest – the good and bad. • Be concise. • Good presentation skills – practice. • Good analysis –explain why. • No spelling errors. • Nice formatting. Both for AMP and Budget
KEY REPORT 2: MONTHLY MANAGEMENT REPORT 1. Status of Unit OKRs 2. SWOT (if necessary) 3. Risks and mitigation plans 4. Next month’s KRs 5. Discussion, requests and approvals 6. Review decisions and next steps 40 PlansProgressNeeds Reminders • No surprises • Be honest – the good and bad. • Be concise. • Good presentation skills –practice. • Good analysis –explain why. • No spelling errors. • Nice formatting. Both for AMP and Budget
41 Section 4 How to Develop Great Reports
THE REPORTING PROCESS Select KPI / Improve Baseline / Set Target ExecuteCollect& Data Analyze Report & DecisionsMake 42 Breakdown your Goals/Objectives into Metrics • For each BIG process, you have a BIG result.This BIG result should be measurable (a SMART Objective) • Each BIG process has SMALLER activities that happen quicker (hourly, daily, weekly). • These SMALLER activities should be measured to tell you sooner, if the BIG objective is on track.
REPORTS TRACK EXECUTION QUALITY LINK TO SOP AND PA 43 ExecutePlan Organizational Structure For organizing CEO Operations BU Division BU BU BU Admin Position Agreement For unit managers Role and Purpose (why) Accountable for List of StandardsResponsibilities(KPIs) StandardProcedureOperating For functions Steps Person Accountable People StandardsResponsibleateachStepKPIs Battle Rhythms For ReportingaccountabilityMeetings/Targets A Planning System Strategic Plan AMPQuarterlyOKRs-OKRsMonthly-KRsWeekly-LegendDaily-Calendar
SELECTING KPIS Inputs Activities Outputs Results 44 # # # # Balance the KPIs you have at 4 stages
3. Step 3: Meet with your manager, baseline the KPI and set a target for each KPI (note AMP may have targets).
5. Step 5:Assign someone to collect and compile the KPIs into a concise report.Well formatted. Clean. No errors. Check quality and give feedback.
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1. Step 1: Draw your org chart
THE REPORTING STEPS
6. Step 6: Hold monthly (or weekly) management meetings. Make better decisions.TvA.
4. Step 4: Define the reporting method (i.e. collect weekly, add to Excel tool, process and report monthly. Next slide.)
2. Step 2: Select the most important KPIs (i.e. 10) for the company and each unit / manager (see PAs and SOPs). Could be at the function level.
7. Step 7: Repeat and track performance. The number is not what’s important. The discipline of reporting and analyzing the number, is.
ORGANIZED KPIS FOR YOUR COMPANY 46 CEO Operations BUDivision BU BU BU Admin Finance Sale Marketing& KPIs KPIs KPIs KPIs KPIsKPIsKPIsKPIs NOTE: KPIs are in your PAs and TargetsSOPs.for your KPIs are set in your AMP and Budget
THE REPORTING METHOD Manager Name: Business Unit: KPI Target Why Important Source of Data How to Report 3.2.1. 47 Manager Name: Business Unit: From: To: KPI Target Actual % Reason for Variance Reason 1. 2. 3. You give them They give you
SECTION 5 BREAKOUT 48
DISCUSSION QUESTIONS 1. What type of reports are you currently getting? (Daily, Monthly, Quarterly) 2. How do you use your reports with your business? What do you do with that information? 3. If you could get one number reported to you every morning when you got into work, what would it be? 4. How can you get that number reported to you starting tomorrow? 5. TIME PERMITTING: One to two share their 3 min speech on what you have implemented 49
ASSIGNMENT 3 min speech… About what you have implemented at your company based on the program, and the change it is having. 50
SUMMARY
& ASSIGNMENT 51
SECTION 6
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•
• If
•
SUMMARY you don’t KPIs are a key management tool to assess the progress of your company. Define a few (5-10) key metrics (KPIs) that you monitor regularly. Select both financial and operational metrics (HINT: look at your PAs and SOPs, and AMP and budget). Hold a monthly management meeting to hear the Unit Managers report and analyze their KPIs (ops and finance). Hold your managers accountable to these KPIs.
52
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measure it, you can’t manage it.
1. Use your calendar: Set your three I Musts for the week and map all your time to your calendar. Set one of the I Musts to work ON the business.
HOMEWORK ASSIGNMENT
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3. Submit your Reporting Method table for one unit via email to gain acceptance into the next class.
2. The ON the business I Musts:Take three hours to meet with your managers and 1) select 2-3 KPIs for each of their units; 2) Ask them to baseline the KPI for March and set a target for April; and complete the Reporting Method table. Ensure your manager understands the entire table. 3) Schedule the April management meeting. Invite management. Provide them with the P,O and A. Have them be prepared to present on their KPIs. Check-in with your managers to help them prepare the week before.
FEEDBACK FORM 54Proprietary and Confidential to RENEW LLC
55 Thank you! www.renewstrategies.com
56 Backup! www.renewstrategies.com
Always gives a “why” for the variance – Always share the good and the bad
management
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REPORTING RULES OF THUMB
• Content: –
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Always present financial and operational (KPI) metrics – Always cover Targets vs.Actual (TvA) –
• Frequency: – No less than monthly for reports – No less than quarterly for reports
Format:Word document if not presenting. PPT if presenting. Use company Logo, standard slide formatting. Be consistent.
board
• Format
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MANAGEMENT REPORTS : CEO and other management members. Meeting: Informational and decisional. Just after the 15th. No less than once a month. Preparation: Slides collected and consolidated before meeting and sent out in one file. : 3-5 slides per manager, 15 min per manager.
• Audience
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EXAMPLE: REPORTING FOR THE EXECUTIVES’ PROGRAM 59 Performance Dashboard Executives’ Program Financials Jobs Capital Weekly:Attendance, Feedback Score,Assignments,Adoption
