Business Financial Information Secrets

CHAPTER 11Flash Reports and Key Performance Indicators

I FEEL THE NEED FOR SPEED

“I feel the need for speed” was a quote made famous by the character Maverick, played by Tom Cruise, in the movie Top Gun. Today, this quote no doubt rings close to home for business executives and senior management across the board as given the digital transformation of the global economy, speed in financial information reporting is no longer an option but a necessity. In today's hyperconnected world that analyzes millions of pieces of data in a split second, the ability to decipher key operating data quickly and efficiently (at a senior management level) is critical.

But speed should not be confused with ultra‐short time periods, as not all flash reports are “speed”‐centric. Flash reports may be just as effective when produced monthly as opposed to hourly. Effective flash reports provide the right financial information at the right time and in the right format for management to assess critically sensitive operating data.

We should note that this chapter will not be overly long as we have already referenced the concept of flash reports and key performance indicators (KPIs) throughout this book and in numerous contexts (e.g., using in forecasts, reported in financial statements, etc.). However, we felt it would be helpful to provide some additional examples of flash reports and KPIs that are used in today's ecommerce or direct‐to‐consumer (DTC) industries given the rise of online shopping at the ...