Measure and report what matters Peter Scott Consulting

What is the purpose of financial measurement and reporting? PETER SCOTT CONSULTING

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

Financial measurement and reporting - create KNOWLEDGE - manage RISK PETER SCOTT CONSULTING

Risk and Knowledge Management Risk Management Knowledge Management

Financial measurement enables you to manage performance PETER SCOTT CONSULTING

If you cannot measure it, you cannot manage it. PETER SCOTT CONSULTING

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

How do you use financial information? PETER SCOTT CONSULTING

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

Do you produce data or information? PETER SCOTT CONSULTING

Avoid financial information overload PETER SCOTT CONSULTING

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

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

Are you measuring and reporting what matters? PETER SCOTT CONSULTING

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

Do you / your people use everything you measure / report? If not – why do you measure it / report it? PETER SCOTT CONSULTING

Your key performance indicators? PETER SCOTT CONSULTING

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

Real time or historical information? PETER SCOTT CONSULTING

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

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

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

“I don’t have a clue about the financial reports I receive” PETER SCOTT CONSULTING

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

Is it enough just to provide reports – or do you need to do more? PETER SCOTT CONSULTING

Who needs what? PETER SCOTT CONSULTING

Hard copy or available on line? PETER SCOTT CONSULTING

Frequency of reporting? PETER SCOTT CONSULTING

Inaccurate reports destroy credibility PETER SCOTT CONSULTING

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

Your financial measurement and reporting ACTION PLAN? PETER SCOTT CONSULTING

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

Any questions? PETER SCOTT CONSULTING