Exec's Program #8: Reporting

THE EXECUTIVE’S PROGRAM SESSION 8 HOW TOP EXECUTIVE GIVE AND USE REPORTS

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PURPOSE AND LEARNING OBJECTIVES 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

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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

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SECTION 1 ORIENTEERING

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THE 5 HABITS Mindset

Practice

Your morning routine

Learn → do → teach

Feedback

Focus

Coaching

Your plan.

Time Management Your calendar Discipline = Freedom

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HOW TO THINK Thinking that your business is the product Entrepreneur Manager

Supplies

The Machine

Market

Technician

You should be thinking different about being a successful entrepreneurs – that your business is the product. And build management muscle!

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THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting

Monthly Mgt. Reports

All Hands Meeting

The Weekly Legend

Quarterly Board Meetings Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR

Team Meetings

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WHAT WE ARE BUILDING

Plan A Planning System

Execute Organizational Structure For organizing

Position Agreement For unit managers

Strategic Plan

Standard Operating Procedure For functions

Role and Purpose (why) AMP - OKRs Quarterly - OKRs

Accountable for List of Responsibilities People Responsible

Operations BU Division

BU

Reporting / Targets Person Accountable

Admin

Monthly - KRs

Daily - Calendar

Meetings Steps

CEO

Weekly - Legend

Battle Rhythms For accountability

BU

BU

Standards (KPIs) Standards at each Step KPIs

Gender considerations 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.

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Meetings don’t have to suck!

Always have: Purpose, Outcomes & Agenda

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Orchestrate Execution

Meetings are the battle rhythm for execution Proprietary and Confidential to RENEW LLC

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ORIENTEERING: STEP-BY-STEP Session Topics

What I would expect you to do…

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.

Start with your Guiding Statements, and KISS and use it (Coffee Stains) to set your annual plans.

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.

Governance

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.

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!

Management Teams

Have an org chart and use it to organize your company.

Write PAs for those connected to you (your management team).

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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The Exec’s Program Theory With a little planning and disciplined execution, you have a huge competitive

advantage in the market.

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QUICK POLL YES, OR NO?

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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.

Proprietary and Confidential to RENEW LLC

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Section 2 Why Reporting

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How are you doing?

How do you know?

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FITBIT DASHBOARD

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Reports

Am I a “good” executive?

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LINKING REPORTING TO ACCOUNTABILITY • Accountability: Responsible for the outcome, not just the task(s).

• Responsibility: Responsible for tasks. Sometimes multiple tasks deliver an outcome.

Good outcomes are clear and measurable.

Accountable organizations, measure.

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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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“Management is doing things right; leadership is doing the right things.” ~Peter Drucker

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Sidebar Gender-Smart Reporting

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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

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GENDER EQUALITY INDICATORS Remember: • Data and timely internal reporting is key to steer towards and ultimately reach your targets • Companies with timely and accurate reporting perform better – without regular reports, you cannot see risks and opportunities in time • Disagreggated data also allows you to see the business case of actions you take

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GENDER EQUALITY INDICATORS Advice: • Focus on a good number of metrics that add value to your monitoring and decision-making

This is technical!

Don’t be hesitant to ask for help.Technical assistance may be available.

• Take advantage of impact metrics that have been harmonized across the investor community to make reporting simple and comparable

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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

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IRIS+ METRICS ALIGNED WITH 2X

2 28 8

IRIS+ METRICS ALIGNED WITH 2X

Policies

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CASE STUDY Financial Access Commerce and Trade Services (FACTS) Supply chain financing company in East Africa (Uganda & Kenya)

Priority: ➔ Improvement plan

• • •

• • •

Internal reporting on underlying metrics allows the company to prioritize actions and steer towards targets

• •

33% women-owned client companies 70% women-owned supplier companies Sex-disaggregated data is collected

Relevant policies in place Communication of policies to be strengthened Gender equality strategy & action plan in place

70% women as employees Areas of improvement: o Career advancement opportunities for women o Delegation of more decisionmaking power from expatriate to local staff

• • • Priority: ➔ Improvement plan

25% women in top management team 50% women as senior managers No women on the board ➔ Action plan towards gender balance in place

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REPORTING + GE INDICATORS: ADVANTAGES Internal:

External:

•

Provides measurable targets

•

•

Dramatically improves monitoring

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

• •

• •

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!

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Section 3 What Good Reporting Looks Like

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WHAT ARE MANAGEMENT REPORTS?

Data in

## #

Analysis out

Clear presentation of operational and financial metrics, and the analysis of what those numbers mean.

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GOOD AND BAD REPORTING

Late with Errors

Timely and Accurate

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THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting

Monthly Mgt. Reports

All Hands Meeting

The Weekly Legend

Quarterly Board Meetings Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR

Team Meetings

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QUESTION: WHAT? WHAT REPORTS DO I NEED?

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HOW TO SEE REPORTS 1) CEO’s report to the Board – “Doing the right things?”

Reporting and Governance

• Are they executing the company’s plan?

Shareholders

• Are they making progress against AMP Goals and Budget (TvA)?

• Used to make strategic decisions (management, resources, direction)

2) Management’s report to the CEO – “Doing things right?”

• Are they executing their unit’s plan?

Accountability

• 10 slides and 2 hours of briefing

Board

CEO

Management

• During monthly management meetings • Progress against AMP OKRs; Budget TvA; Quarterly OKRs

Team

• 3-5 slides and 15 – 30 min per manager Proprietary and Confidential to RENEW LLC 37

HOW REPORTING FLOWS Board Report

Leadership “Do the right things.”

AMP

Management “Do things right.”

CEO Report

Management Report

Financial Report

Op KPIs (PA, SOPs)

Financial State. & KPIs

Operational Activities

Financial Activities

Steps in the SOPs

Accounting

Management

CFO

Budget

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KEY REPORT 1: QUARTERLY BOARD REPORT

Needs

Plans

Progress

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

Both for AMP and Budget Reminders • No surprises • Be honest – the good and bad.

• Be concise.

• Good presentation skills – practice.

• Good analysis –explain why.

• No spelling errors.

• Nice formatting.

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Status of Unit OKRs

2.

SWOT (if necessary)

3.

Risks and mitigation plans

Plans

4.

Next month’s KRs

5.

Discussion, requests and approvals

6.

Review decisions and next steps

Progress

1.

Needs

KEY REPORT 2: MONTHLY MANAGEMENT REPORT

Both for AMP and Budget Reminders • No surprises • Be honest – the good and bad.

• Be concise.

• Good presentation skills – practice.

• Good analysis –explain why.

• No spelling errors.

• Nice formatting.

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Section 4 How to Develop Great Reports

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THE REPORTING PROCESS Select KPI / Improve

Report & Make Decisions

Analyze

Baseline / Set Target

Execute & Collect Data

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.

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REPORTS TRACK EXECUTION QUALITY LINK TO SOP AND PA

Plan A Planning System

Execute Organizational Structure For organizing

Position Agreement For unit managers

Strategic Plan

Standard Operating Procedure For functions

Role and Purpose (why) AMP - OKRs Accountable for

CEO

List of Responsibilities People Responsible

Operations BU Division

BU

Reporting / Targets Person Accountable

Admin

Monthly - KRs

Daily - Calendar

Meetings Steps

Quarterly - OKRs

Weekly - Legend

Battle Rhythms For accountability

BU

BU

Standards (KPIs) Standards at each Step KPIs

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SELECTING KPIS Balance the KPIs you have at 4 stages

#

Inputs

#

Activities

#

Outputs

#

Results

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THE REPORTING STEPS 1.

Step 1: Draw your org chart

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.

3.

Step 3: Meet with your manager, baseline the KPI and set a target for each KPI (note AMP may have targets).

4.

Step 4: Define the reporting method (i.e. collect weekly, add to Excel tool, process and report monthly. Next slide.)

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.

6.

Step 6: Hold monthly (or weekly) management meetings. Make better decisions. TvA.

7.

Step 7: Repeat and track performance.

The number is not what’s important.

The discipline of reporting and analyzing the number, is.

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ORGANIZED KPIS FOR YOUR COMPANY NOTE: KPIs are in your PAs and SOPs.

CEO KPIs

Admin

Finance

KPIs

Sale & Marketing

Operations BU

KPIs

BU

KPIs

KPIs

Targets for your KPIs are set in your AMP and Budget

KPIs

BU

KPIs

BU

KPIs

Division

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THE REPORTING METHOD

You give them Manager Name: KPI

Business Unit: Target

Why Important

Source of Data

How to Report

1.

2.

3.

They give you Manager Name: KPI

Business Unit: Target

Actual

From: %

To:

Reason for Variance Reason

1.

2.

3.

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SECTION 5 BREAKOUT

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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

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ASSIGNMENT

3 min speech…

About what you have implemented at your company based on the program, and the change it is having.

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SECTION 6 SUMMARY & ASSIGNMENT

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SUMMARY • If you don’t measure it, you can’t manage it. 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.

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HOMEWORK 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 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.

3.

Submit your Reporting Method table for one unit via email to gain acceptance

into the next class.

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FEEDBACK FORM

Proprietary and Confidential to RENEW LLC

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Thank you! www.renewstrategies.com

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Backup! www.renewstrategies.com

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REPORTING RULES OF THUMB • Format: Word document if not presenting. PPT if presenting. Use company Logo, standard slide formatting. Be consistent.

• Content: – Always present financial and operational (KPI) metrics – Always cover Targets vs. Actual (TvA)

– Always gives a “why” for the variance – Always share the good and the bad • Frequency: – No less than monthly for management reports

– No less than quarterly for board reports

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MANAGEMENT REPORTS • Audience: 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.

• Format: 3-5 slides per manager, 15 min per manager.

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EXAMPLE: REPORTING FOR THE EXECUTIVES’ PROGRAM Weekly: Attendance, Feedback Score, Assignments, Adoption

Performance Dashboard Executives’ Program

Financials

Jobs

Capital 59