ACCA Strategic Professional · Advanced Performance Management · Management reports
Zentara Ltd's finance team sends the same 40-page monthly report to every manager. Operational supervisors complain that they cannot find the information relevant to their decisions. Which design change would best address this problem?
The best fix is to tailor each report to the user's decision needs and level of responsibility, focusing on items they can control. Adding more data increases overload, less frequent reporting delays action, and excluding supervisors removes the information they need to manage operations.
- ATailor reports to each user's decision needs and responsibility level, focusing on what they can controlCorrect
- BAdd more detailed historical data to every report so nothing is omitted
- CIssue the report less frequently so that it can be more comprehensive
- DSend the full report only to senior executives and none to supervisors
Explanation
Effective management reports are designed around the user's information needs, decisions and level of authority. Supervisors need concise, controllable, operational information. Adding more data worsens information overload, and withholding reports removes their ability to act.
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