Measure and report what matters Peter Scott Consulting

Measure and report what matters

Peter Scott Consultingwww.peterscottconsult.co.uk

What is the purpose of financial measurement and reporting?

PETER SCOTT CONSULTING

To provide clear information to those running the business to enable them to:

- Know what is happening / will happen in the business

- Make decisions based on sound knowledge

- Take effective action

PETER SCOTT CONSULTING

Financial measurement and reporting

- create KNOWLEDGE

- manage RISK

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Risk and Knowledge Management

Risk

Management

Knowledge

Management

Financial measurement enables you to manage performance

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If you cannot measure it, you cannot manage it.

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Is your financial measurement and reporting helping or preventing you achieving your objectives?

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How do you use financial information?

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Financial management

- whose responsibility is it in a law firm?

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Do you produce data or information?

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Avoid financial information overload

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In a law firm what needs to be measured

- and why?

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What matters?

-How can we measure the financial performance of each part of our firm?

-How profitable / loss making are our clients?

-Which parts of our firm generate good cash flow

or soak up cash?

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Are you measuring and reporting what matters?

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Is there anything you should measure which you do not currently measure and report on?

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Do you / your people use everything you measure / report?

If not – why do you measure it / report it?

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Your key performance indicators?

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Test your KPIs

• Why do we produce this information?• Does it tell us what we need to know about our business?• What does it not tell us about our business?• Do we ever use this information?• If not then why do we produce it?

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Real time or historical information?

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Your priority financial outcomes?

How to measure and report what matters to achieve those outcomes

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Your desired Outcomes?

- Accelerating cash flow?- Improving profitability?- Building performance?- Effective business development?- Managing your risks and compliance?

- Others?

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How to ensure the most effective use is made of your financial reports to achieve required outcomes?

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“I don’t have a clue about the financial reports I receive”

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Do your partners / other fee earners have financial knowledge gaps?

Do they understand why you provide them with financial reports?

Do they understand why you are asking them to take a certain action?

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Is it enough just to provide reports – or do you need to do more?

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Who needs what?

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Hard copy or available on line?

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Frequency of reporting?

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Inaccurate reports destroy credibility

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Would a financial education programme for your firm help to achieve desired outcomes?

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Your financial measurement and reporting ACTION PLAN?

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What are you going to take away from here today and put into action?

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Any questions?

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