The Power of Effective Management Reporting
On May 23, 2025, we brought together finance leaders for a Finance Hot Topics event to explore how organizations can transform their management reporting. The conversation was focused, the perspectives were practical, and one insight stood out: Management reporting is not just about numbers – it’s about enabling decisions.
The challenge – how finance can better communicate performance insights to executives – was the center of the event discussion. It is also the central theme of the book Communicating Financials to Executives by Anders Liu-Lindberg and Christian Frantz Hansen. This Point of View is a direct follow-up to the event and the book. It takes the dialogue further by providing a more structured perspective on how to most effectively communicate financials to executives. To deepen the conversation, we also held roundtable discussions with participants during the event. These sessions surfaced recurring frustrations, actionable ideas, and shared ambitions for the future of management reporting.
We aim to provide clear examples, models, and frameworks to help finance teams evolve from static data distribution to performance storytelling that drives action. Whether your current management reports are standardized templates or already include forecasting and scenario planning this paper is designed to meet you where you are and help guide you to where you want to be.
From Numbers to Narrative
Effective management reporting is not just about presenting numbers; it is about creating meaning from data to drive performance.
Traditional management reporting has often focused on completeness and accuracy – delivering extensive figures with minimal interpretation. But in today’s fast-paced, insight-driven business landscape, that is no longer enough. Finance teams are expected to not only report on the numbers but also to explain what they mean, why they matter, and what should happen next.
As organizations face increasing complexity, finance professionals must evolve their roles. The goal is not just to share data, but to drive decisions. That requires a shift from information delivery to performance storytelling – where reports become tools for dialogue, alignment, and action
The Dual Role of Finance: From Analyst to Strategic Advisor
This transition involves mastering two distinct but equally essential roles: the Analyst, who uncovers the insight, and the Strategic Advisor, who communicates that insight to decision-makers. Both are necessary to ensure management reporting creates real business impact. The finance function must fulfill both roles.
First, professionals must analyze data to uncover insights – like skilled analysts uncovering patterns and trends within operational and financial layers. Then they must communicate those findings in a way that engages their audience – acting as strategic advisors who translate complexity into clarity.
The biggest risk lies in the “Valley of Wasted Time”, where insights exist but fail to reach or resonate with decision makers. Without proper communication, even the most brilliant analysis can go unnoticed. The return of effort invested in management reporting only rises when insights are transformed into actions, culminating in the so-called “Mount Impact”
This underscores the broader message of this paper: management reporting must evolve from static data presentation to performance storytelling.
