Reporting - Revenue Example

Presenting your business results.  This chart, created in MS Excel, is a very simple way to report any number of different metrics.  This is an example of revenue verses budget by month.  The chart is updated monthly or quarterly to the appropriate management team and posted to all team members.  It is an easy way to show a Pareto Graph of the root causes of the deviations from budget and the planned actions, when necessary, to correct.  Easy to read, easy to do.


Fig. 1 - Metric - Revenue Report Chart

 Let's look at each area of the chart separately.  The first area is the Revenue/Budget Graph (Fig. 2).  Plot your budget (Revenue Forecast) out by month for the year then add actual revenue results as they are documented by month.  Be sure this is posted for all team members to see.  It is important for everyone to feel ownership for the business results.

Fig. 2 - Revenue Report Graph

 The next area on the chart is the Pareto Graph (Fig. 3) for the root causes of any significant revenue deviations.  The graph is positioned to the right of the revenue graph.  The data, Figure 4, is recorded to the right of the Pareto Graph.  You need to state the root cause of the deviation so that the underlying issue for the deviation can be directly addressed.  For example, a methodology problem could have caused the failure to meet a quote deadline or the cause could have been poor follow-up.  This should be outlined in the recovery plan area along with the plan to prevent future occurrences.  Keep in mind that the chart is built up month-by-month so when a significant deviation is shown the planned corrective action must be shown at the same time.

Fig. 3 - Pareto Chart Graph

The Pareto data and information can be positioned just to the right of the Pareto Graph on your Excel sheet as shown in Figure 1.   Remember your Pareto data is built up on a monthly basis.  There may be one or more reasons for revenue/budget deviations in any month.  If appropriate major positive deviations in revenue should also be reported.


Fig.4 - Pareto Data
Below the graphs you can outline your recovery plan(s) as shown in Figure 1 and Figure 5.  You can just copy and paste the Recovery Plan format to add additional action items.  Keep everything as short as possible on the chart.  If you need to add more detail for the Recovery Plan for a particular item it should be done in a separate report or add another sheet to the display.  You want your overall chart to be a quick-read.

Fig. 5 Recovery Plan Pareto

You can report many items with the same format:

  • Earnings - EBIT (earnings before interest and taxes)
  • Profit - Revenues minus all costs (typical)
  • Revenue per instructor
  • Turnover in personnel (high turnover organizations)
  • Completed performance reviews
  • Capital versus budget
  • etc.

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