Effective management by the GP depends on the ability of individuals to make well-informed decisions. The accuracy, timeliness and relevance of information on which to base decisions is therefore of paramount importance.
Businesses generate large amounts of information: about customers and markets; historic, current and future financial and non-financial performance; profitability, efficiency and effectiveness; and about risk and the management of risk. One of the key roles of the GP’s executives is the assimilation of the data and management information being generated at a portfolio company level. Analysis and assessment of this information is critical to gaining a clear insight into the portfolio company and as a result ensuring the most effective management of the portfolio company at a strategic, tactical and operational level.
Management should ensure that the organisation’s information is:
- accurately compiled;
- clear and unambiguous;
- kept secure and confidential;
- available in a timely and appropriate format and manner.