Measure and report what matters

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Measure and report what matters

• Peter Scott Consulting
• www.peterscottconsult.co.uk

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What is the purpose of financial measurement and
reporting?

• PETER SCOTT CONSULTING

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To provide clear information to those running
the business to enable them to - Know what is
happening / will happen in the business - Make
decisions based on sound knowledge - Take
effective action

• PETER SCOTT CONSULTING

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Financial measurement and reporting- create
KNOWLEDGE- manage RISK

• PETER SCOTT CONSULTING

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Risk and Knowledge Management
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Financial measurement enables you to manage
performance

• PETER SCOTT CONSULTING

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If you cannot measure it, you cannot manage it.

• PETER SCOTT CONSULTING

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Is your financial measurement and reporting
helping or preventing you achieving your
objectives?

• PETER SCOTT CONSULTING

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How do you use financial information?

• PETER SCOTT CONSULTING

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Financial management - whose responsibility is
it in a law firm?

• PETER SCOTT CONSULTING

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Do you produce data or information?

• PETER SCOTT CONSULTING

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Avoid financial information overload

• PETER SCOTT CONSULTING

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In a law firm what needs to be measured- and
why?

• PETER SCOTT CONSULTING

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What matters? -How can we measure the
financial performance of each part of our
firm?-How profitable / loss making are our
clients?-Which parts of our firm generate good
cash flow or soak up cash?

• PETER SCOTT CONSULTING

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Are you measuring and reporting what matters?

• PETER SCOTT CONSULTING

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Is there anything you should measure which you do
not currently measure and report on?

• PETER SCOTT CONSULTING

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Do you / your people use everything you measure /
report? If not why do you measure it / report
it?

• PETER SCOTT CONSULTING

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Your key performance indicators?

• PETER SCOTT CONSULTING

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Test your KPIs

• Why do we produce this information?
• Does it tell us what we need to know about our
  business?
• What does it not tell us about our business?
• Do we ever use this information?
• If not then why do we produce it?
• PETER SCOTT CONSULTING

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Real time or historical information?

• PETER SCOTT CONSULTING

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Your priority financial outcomes?How to
measure and report what matters to achieve those
outcomes

• PETER SCOTT CONSULTING

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Your desired Outcomes?- Accelerating cash
flow?- Improving profitability?- Building
performance?- Effective business development?-
Managing your risks and compliance?- Others?

• PETER SCOTT CONSULTING

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How to ensure the most effective use is made of
your financial reports to achieve required
outcomes?

• PETER SCOTT CONSULTING

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I dont have a clue about the financial reports
I receive

• PETER SCOTT CONSULTING

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Do your partners / other fee earners have
financial knowledge gaps?Do they understand why
you provide them with financial reports?Do they
understand why you are asking them to take a
certain action?

• PETER SCOTT CONSULTING

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Is it enough just to provide reports or do you
need to do more?

• PETER SCOTT CONSULTING

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Who needs what?

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Hard copy or available on line?

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Frequency of reporting?

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Inaccurate reports destroy credibility

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Would a financial education programme for your
firm help to achieve desired outcomes?

• PETER SCOTT CONSULTING

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Your financial measurement and reporting ACTION
PLAN?

• PETER SCOTT CONSULTING

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What are you going to take away from here today
and put into action?

• PETER SCOTT CONSULTING

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Any questions?

• PETER SCOTT CONSULTING