It is important for a business to understanding how it is performing so it can continually assess its targets, goals and objectives and make adjustments and improvements as necessary.  

Performance reporting measures and tracks the key metrics of the business. These are the important indicators that inform those managing it whether the business is performing well or improvements need to be made. Performance reporting further alerts a business to trends and can help stop problems before they escalate. 

Performance reporting can also be part of a risk management plan and may be needed for compliance reasons (ie OH&S).

Key business metrics are not only about financials. They can be defined in a number of ways and are what is important to the business in achieving success. Therefore, there is no set formula or prescription as to what the business should be measuring. It is up to the business  to set these, based on goals, objectives or targets, and in some cases even the vision and values.

Depending on the nature of your business, performance reporting can include:

• key financials – sales, profits, expenditure on major projects, etc
• number of new customers
• customer satisfaction
• sick days taken by staff
• staff attrition rates
• workforce satisfaction and culture
• production output
• rate of inventory turnover
• injury free work days

Metrics can be measured against a pre-set budget, last year’s or last month’s actual results, or industry or international benchmarks. Key metrics can be reported on a daily, weekly, monthly or annual basis, as it makes sense for the business. 

Performance reporting timeframes and comparisons will depend on what the business is using the information for. In some cases, certain information may only be able to be collected once a year (i.e. annual customer or staff survey). Reporting timeframes may also be collected more regularly (e.g. weekly) and consolidated into monthly or annual reports. 

The more open and transparent performance reporting is, the more the business can work together to achieve its goals.