If you’re someone who uses words (you know who you are!), you should read this post by Michael Lamoureux, our favorite in-the-supply-chain-network doctor.
Michael writes specifically about what may sound like old news but is a very current problem: the failure of the financial reporting supply chain, in too many companies, to produce financial reports that communicate effectively to their target user groups.
Rightly troubled by the frequent failure of the financial reporting process to produce clear and useful reports (particularly in the context of Sarbanes-Oxley), Michael offers a piece of advice that should interest anyone who has a role in any kind of reporting supply chain:
“Simplify. Use whatever leeway you have in report preparation to design reports that are as clear and easy to read as possible. Consider producing different summaries for different groups to simplify message communication.”
Doesn’t get more simple than that, does it? That second sentence is particularly good: one size does not fit all.
As business grows more complex and a company’s universe of stakeholders expands, smart and clear communication, not just in financial reporting but in all areas – corporate and social responsibility reporting, for example – becomes a strategic advantage any company should want to claim.
In fact, take it from someone who knows something about business strategy. Warren Buffet wrote a most elegant preface to the Security and Exchange Commissions “A Plain English Handbook”. I guess it should be no surprise that the man know for his plain talk knows a thing or two about simple communications!
Michael writes specifically about what may sound like old news but is a very current problem: the failure of the financial reporting supply chain, in too many companies, to produce financial reports that communicate effectively to their target user groups.
Rightly troubled by the frequent failure of the financial reporting process to produce clear and useful reports (particularly in the context of Sarbanes-Oxley), Michael offers a piece of advice that should interest anyone who has a role in any kind of reporting supply chain:
“Simplify. Use whatever leeway you have in report preparation to design reports that are as clear and easy to read as possible. Consider producing different summaries for different groups to simplify message communication.”
Doesn’t get more simple than that, does it? That second sentence is particularly good: one size does not fit all.
As business grows more complex and a company’s universe of stakeholders expands, smart and clear communication, not just in financial reporting but in all areas – corporate and social responsibility reporting, for example – becomes a strategic advantage any company should want to claim.
In fact, take it from someone who knows something about business strategy. Warren Buffet wrote a most elegant preface to the Security and Exchange Commissions “A Plain English Handbook”. I guess it should be no surprise that the man know for his plain talk knows a thing or two about simple communications!
Full link is:
ReplyDeletehttp://blog.sourcinginnovation.com/2008/05/10/the-financial-reporting-supply-chain.aspx