This latest update to the above paper includes an overhaul and update of the second edition, and in addition:
Stakeholder Reporting: The paper spells out reasons for presenting monthly reports of financial and operations performance to show stakeholder interests.
Strategic Links: Monthly reporting "should include key performance indicators derived from strategic objectives, where a strategic plan exists" (p. 24). The paper distinguishes
(a) performance summaries for modifications to existing strategy from
(b) performance summaries for a new strategic plan or a significant strategic change to existing business.
It provides outline processes and examples for preparing separate, supplementary, monthly reports within the same performance management system as for business continuity reports.
Organization Failures:
Studies quoted included analysis of nine large corporate failures 1995-2003; 455 SME bankruptcies in Austria 2011; a literature survey of 188 reported international cases 1995 to 2024; and case studies of Carillion and Eastman Kodak. Internal causes were dominant, rather than external. The paper argues that an internal reporting system showing financial and operational impacts of decisions might have aided better governance in many of these organization failures.
The updated paper presents a systematic, integrated, and stakeholder-centric monthly reporting framework. By combining financial and operational data, emphasizing forward-looking analysis, establishing clear governance, and drawing lessons from past failures, the proposed system aims to provide executives with the necessary tools for timely decision-making, risk mitigation, and the sustainable growth of their organizations. While acknowledging limitations such Top of Form
as the need for empirical validation and the risk of misrepresentation, the paper posits that robust monthly reporting is a "necessary but not sufficient condition for good governance" and deserves "greater attention in both management practice and research" (p. 82-83). The paper is with SSRN Electronic Journal at
https://ssrn.com/abstract=4830384
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Geoff Williams Retired Member CA ANZ
GLW Analysis Services Pty Ltd
Melbourne VIC
Australia
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