Category 11 of 12

Executive Reporting

Executive dashboards inherit every unresolved disagreement below them. These questions cover what should happen before a number reaches leadership, and what makes it defensible afterwards.

1. How does a CEO know whether a dashboard number is correct?

   A CEO can treat a dashboard number as reliable when the definition, authoritative source, resolution of any disagreements and lineage can be shown on request.

2. How can CFOs verify the provenance of executive KPIs?

   CFOs can verify provenance by requiring each executive KPI to carry its source values, definition, calculation, adjustments and determinations, and by sampling them: picking a KPI and tracing it back to resident- or transaction-level evidence.

3. Why do executive dashboards disagree with departmental reports?

   Executive dashboards and departmental reports usually draw from different systems or data warehouse loads, apply different definitions and refresh at different times.

4. What should happen before a number reaches an executive dashboard?

   Before a number reaches an executive dashboard, its definition should be approved, its sources compared, any disagreement resolved by rule or by a named person, the determination recorded, and its lineage attached.

5. How should disputed numbers be displayed to executives?

   Show disputed numbers as disputed: the competing values, their sources, the reason for the difference, who owns the resolution and when it is due.

6. Should executives see the original values behind a governing number?

   Yes, they should be able to see them when needed.

7. How can boards trust senior living operating reports?

   Boards can trust operating reports when management can show, for the key measures, the approved definitions, the authoritative sources, how disagreements were resolved and the lineage behind each number, and when disputed items are reported as disputed.

8. What audit trail should exist behind executive KPIs?

   Behind each executive KPI there should be a record of the source values, the definition and calculation version, every adjustment and override with its approver and reason, each reconciliation determination, and the refresh history.

9. How can executives distinguish calculated data from governed data?

   Calculated data is arithmetic on whatever values arrived.

10. What makes an operating record defensible?

    An operating record is defensible when every important number in it has an approved definition, a known authoritative source, a recorded resolution of any disagreement with the original values kept, and lineage someone else can follow.