You have management information readily available
Management information drives the business and is key to delivering the business plan. Information is also needed to support managers make informed decisions that can be quantified by numerical data.
Key Issues
·         Management information could include the following:
o    Sales
o    Trading profit
o    Restructuring costs 
o    Operating cash flow statement,
o    Return on capital employed
o    Key ratios
o    Performance against previous years
o    Profit and sales variances
·         Your managers should prepare an action plan outlining the actions necessary to deliver the financial plan
·         These plans should be presented to the senior management team and discussed until agreement is reached on:
o    the financial targets for the next financial year
o    and outline targets for the following two years
·         The production and purchasing managers should collaborate and take joint responsibility for delivering the master production schedule, on time
·         Businesses should get together at a senior level to decide how best they can support each other
o      Suppliers need to be given advance visibility of schedules
o      Deliveries should be made on time and in full
o      Quality problems should be rectified prior to delivery
o      All efforts should be made to reduce lead times, driving out stock
o      Items should be delivered ready for use without inspection
Factors for Success      
Factors to  Avoid
1.     Your managers are able to base their decisions on accurate, timely financial information
1.     Inaccurate financial information
2.     Information available so late that no rectifying action is possible
Who does this apply to?
Senior management team, finance manager
Realisable Benefits
Effective decisions based on accurate data leading to a more profitable business


Factors affecting financial performanceFactors affecting financial performance

Factors affecting financial performance

Cash flowCash flow

Cash flow

Determining the cost of productionDetermining the cost of production

Determining the cost of production

Justifying the make versus buy decisionJustifying the make versus buy decision

Justifying the make versus buy decision

Justifying capital expenditure decisionsJustifying capital expenditure decisions

Justifying capital expenditure decisions

Managing debtorsManaging debtors

Managing debtors

Managing creditorsManaging creditors

Managing creditors



Providing management informationProviding management information

Providing management information