How to adopt holistic reporting
Reporting is a means of communicating with stakeholders on past performance, current
activities and the future outlook regarding the strategic ambitions of an organization.
When done correctly, it provides a holistic and detailed picture of how an organization creates
value and impacts stakeholders, the value drivers or enablers and critical investments required
to maintain and increase the competitive edge in the marketplace.
Reporting should tell a unique story in an authentic way that builds trust. However, too many
organizations approach reporting in silos, making it difficult to tell a coherent story and give
users of their reports a detailed picture of how they create value in the short, medium and long
term.
For example, some organizations find it challenging to holistically connect their financial and
non-financial reporting to their strategy — one consequence of a silo approach.
The ability to make these connections could influence the decision of investors and become
costly for organizations.
Some aspects for organizations to consider when adopting a comprehensive approach to
reporting include the following:
Organizations should build an environment of collaboration between the financial and non-
financial reporting teams to ensure coherent messaging regarding performance measures linked
to strategy and other areas.
In addition, non-financial reporting should not be left until the reporting period end but should
be performed periodically throughout the year, similar to financial reporting.
For example, sustainability reporting should be done all year round and not as a one-off activity
at the end of the financial year.
Secondly, organizations should set out the financial and non-financial key performance
indicators (KPIs) associated with their strategic priorities.
Organizations could also create information dashboards that provide real-time monitoring of
these KPIs specific to different functional areas within the organization.
Auditing the data and information on non-financial KPIs would increase the confidence and
reliance placed by stakeholders.
They should also disclose KPIs and their pre-defined targets together to enhance accountability.
Internally, an organization should also ensure that performance appraisals consider achieving
short- and long-term strategic goals — financial and non-financial.
It will cultivate the right attitude towards monitoring and reporting on the strategic objectives.
Organizations cannot afford to apply a silo mindset to reporting, disconnected from their
strategic priorities, because it reduces the relevance of their report.
Reporting is a means of communicating with stakeholders on past performance, current
activities and the future outlook regarding the strategic ambitions of an organization.
When done correctly, it provides a holistic and detailed picture of how an organization creates
value and impacts stakeholders, the value drivers or enablers and critical investments required
to maintain and increase the competitive edge in the marketplace.
Reporting should tell a unique story in an authentic way that builds trust. However, too many
organizations approach reporting in silos, making it difficult to tell a coherent story and give
users of their reports a detailed picture of how they create value in the short, medium and long
term.
For example, some organizations find it challenging to holistically connect their financial and
non-financial reporting to their strategy — one consequence of a silo approach.
The ability to make these connections could influence the decision of investors and become
costly for organizations.
Some aspects for organizations to consider when adopting a comprehensive approach to
reporting include the following:
Organizations should build an environment of collaboration between the financial and non-
financial reporting teams to ensure coherent messaging regarding performance measures linked
to strategy and other areas.
In addition, non-financial reporting should not be left until the reporting period end but should
be performed periodically throughout the year, similar to financial reporting.
For example, sustainability reporting should be done all year round and not as a one-off activity
at the end of the financial year.
Secondly, organizations should set out the financial and non-financial key performance
indicators (KPIs) associated with their strategic priorities.
Organizations could also create information dashboards that provide real-time monitoring of
these KPIs specific to different functional areas within the organization.
Auditing the data and information on non-financial KPIs would increase the confidence and
reliance placed by stakeholders.
They should also disclose KPIs and their pre-defined targets together to enhance accountability.
Internally, an organization should also ensure that performance appraisals consider achieving
short- and long-term strategic goals — financial and non-financial.
It will cultivate the right attitude towards monitoring and reporting on the strategic objectives.
Organizations cannot afford to apply a silo mindset to reporting, disconnected from their
strategic priorities, because it reduces the relevance of their report.
