Optimal report quality through Management Information Design
Reporting is the basis of successful entrepreneurial action: On the one hand, reporting serves management as a basis for effective and goal-oriented planning, controlling and decision-making. On the other hand, external investors and lenders examine the company's development on the basis of key figures in order to be able to make precise investment decisions. At the same time, there is also a reporting obligation towards state institutions (e.g. tax or financial market supervisory authorities).
In practice, however, the opposite is still often the case: reports and analyses often do not use a uniform notation. This manifests itself, for example, in unclear tables, distorted representations, inappropriate diagrams, confusing graphic presentations, excessive report volumes or even the seemingly arbitrary use of colours. In such cases, all the recipients of the report mentioned at the beginning run the risk of making suboptimal or worse decisions on the basis of missing, incomplete and/or misleading information.
The quality of the reporting is of fundamental importance in each case: the reports must be as informative as possible in order to be recorded and interpreted by the recipients as quickly, precisely and unambiguously as possible. The basic prerequisite for this is an adequate presentation of the contents - ideally by means of standardised notation concepts for visualisation.