Making sure each division of your company has a clear reporting structure
You can read more of David Stack’s Entrepreneur article — Reporting for Duty: The Case for a Strong Reporting Structure.
For departments, it is important to have high level metrics in the standard company reporting package. Here, reports that cover the effectiveness of components like the marketing and sales funnel, customer retention metrics, engineering metrics and hiring by department are essential, mainly because the reports allow the senior team to understand the metrics across each area within the company.
Beyond company-level reporting, you should have more detailed internal reporting for your department. These reports should concisely compare the actual performance of your team each month and quarter to the specific goals that you’ve set. This dashboard will not only make it easier to evaluate the performance of your investments and team, but also fosters a collaborative environment as you work on allocating resources in the future.
Managing the business.
Is your reporting analysis a key part of evaluating your strategy and its effectiveness? Does it play a key role in discussions with your board of directors? Have you set up a recurring meeting where your management team can discuss actual results and metrics along with reviewing long-term strategy? These are all key elements of the structure you should implement as you are scaling your business. A thoughtful and thorough approach to reporting should allow you to use your reports and data to manage your business and leverage that information when it comes time to report to the entire company and your board.