Closing the information gap

Midlands companies are facing a significant information gap affecting key areas of their business. Left unchecked this could undermine short-term decision-making, according to experts in corporate reporting at PricewaterhouseCoopers LLP.

Many businesses are currently in the process of taking critical decisions that may require providing information to external stakeholders, such as banks and regulators. Worryingly, some may be considering such decisions without adequate information, according to the results of PricewaterhouseCoopers latest survey of UK CEOs.

The most important type of information business leaders found useful when making decisions was information about risks (98%). Other types that rated highly include brand or reputation (97%), customers’ needs and preferences (95%), employees’ needs and strengths (92%) and financial forecasts. While the findings show information about risks is seen as important when making decisions, only 32% of CEOs felt they had ‘comprehensive’ information available.

To improve corporate reporting, management teams need to firstly identify key stakeholders, assess their needs and stay alert to any changes that could affect the business. Keeping up-to-date with market conditions and monitoring business risks is also important, so decision makers can access the right information at short-notice.

Richard Porter, partner and corporate reporting specialist at PricewaterhouseCoopers LLP in the Midlands, says:

“It is worrying that business leaders could be about to take business critical decisions without adequate information. Closing the information gap is vital and so needs to be prioritised.

“Of the types of information considered most important when making decisions, the survey found information about financial forecasts is most likely to be described as ‘comprehensive’. Yet only 29% of CEOs feel they have comprehensive information about their customers’ needs and only 27% about their employees.

“In this turbulent climate, reporting clear information quickly and effectively is vital. It can make all the difference when seeking support from external stakeholders such as shareholders, financiers, customers and suppliers. Without it, business leaders risk making decisions today that they may regret later.”

Contact details
Email: Richard Porter
Tel: +44 (0) 121 265 5398