Transparency is one of the key factors in successfully managing a company. This applies equally to economically good and economically challenging times. The only difference is that a lack of transparency in economically challenging situations makes corporate management significantly more difficult and its absence can have far-reaching consequences. When company management acts on the basis of facts and figures, it creates a foundation for a future-proof organization. Ultimately, management based on facts and figures is an elementary component of good corporate governance.
Fact- and figure-based corporate governance provides a stable basis for management decisions. The information set of a company takes into account the relevant facts, parameters and correlations that are necessary for the success or failure of a company. By incorporating this information set into corporate management, transparency can be created that enables management to plan developments validly, recognize deviations from assumptions and proactively manage the company and its development. Fact- and figure-based corporate management is, of course, part of risk management.
But how is it possible to successfully establish fact-based corporate management within the company?
It is important to keep an eye on the big picture here. A systematic approach creates transparency in all relevant areas.
- Transparency in the Development of the Own Company: Stable accounting and meaningful controlling provide the relevant information. Depending on a company’s business model and size, these areas are structured differently. Their task is to provide management with the key information at fixed intervals: turnover, profit contributions, earnings and liquidity as well as performance-related information on the value chains – both as the result of the past period under review and as the planned result of a future period under review.
- Transparency in the Development of the Market: The development of the sales market and customer requirements for the company’s products and services must be systematically analyzed and evaluated. How is the industry developing? What groundbreaking trends or significant changes are there? How are competitors acting? What impact do these developments have on my offering and my company? The same applies to the company’s procurement markets. In this area, it is important to keep an eye on and assess the volume of the relevant market, the behavior of market participants and price developments. The influences from the market on the company’s value chain can be systematically broken down and incorporated into the company’s management based on facts and figures. This in turn depends on the size, business model and sector.
- Transparency in the Development of the Overall Economy: The facts and figures relating to the economy as a whole certainly place the highest demands on a company. Ultimately, the aim here is to identify the decisive factors of macroeconomic development on the value chain and thus on the success or failure of the company. The availability and prices of raw materials, materials, energy and personnel as well as loans, each with the individual requirements of the company, are relevant levels of consideration. The changes that can result from changes in the overall economy and geopolitical developments must be a focus of corporate management. Again, depending on the size, sector and strategy of the company, there are different and individual approaches to creating the necessary transparency.
Transparency as the Basis for Proactive Corporate Management
A systematic basis of information based on facts and figures enables management based on facts and figures. Establishing this approach in the company leads to an active examination of the relevant factors influencing the company’s success. The starting point is the management’s expectations, which are ideally documented in a plan. The deviation of the actual development from the planned development can thus be traced back to the influencing variables. This knowledge directly provides the opportunity to react to developments, i.e. to mitigate risks and exploit opportunities.
The transparent, modern reporting, which is tailored to the company, records the relevant developments and enables proactive management of the company’s success. It also closes the circle to risk management and the compliance obligations arising from the various laws for the management and supervisory bodies.
THE MAK`ED TEAM implements processes that meet requirements and are adapted to the individual requirements of the company to provide a factual and numerical basis for corporate management. The use of digital tools ensures efficient data collection and fast, up-to-date reporting to the management and relevant stakeholders.
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