Enhance Your Financial Reporting with the Executive Metrics Report

Every month the club board, finance committee, general manager, and department heads receive copies of the club’s financial statement made up of the balance sheet and operating statement prepared by the club controller.  The intent is to provide all stakeholders with a summary report of the club’s financial performance.  Additionally, the operating statement is formatted to compare the most recent month’s performance to the same month last year and year-to-date performance compared to last year.

While all this is well and good and customary for the industry, this summary information is long on overview, but woefully short on meaningful detail.  Further, the presentation of information does little to allow discovery and analysis of emerging trends.

Certainly a greater level of detail is available within the financial accounting and reporting system, but it requires special effort to dig it out, format it, and present it for analysis.  Given this, doesn’t it make far more sense to use a system that routinely presents key underlying detail?  Examples would include sales detail such as volume of business and average sale by department, key payroll detail such as overtime hours and benefits cost, membership numbers by category, and month-to-month and year-to-year comparisons of summary operating statement lines.

The simple solution to providing a deeper level of information for ease of analysis is to make the Executive Metrics Report (EMR) a key component of the monthly financial reporting package.  The EMR is made up of important operating metrics tracked by the financial accounting and payroll systems, along with key department benchmarks, both of which are formatted to provide month by month and year by year comparisons.

While every general manager and club board may have their own ideas of what metrics to include, Club Resources International has developed an Executive Metrics Report that covers key operating data.  Each club can take this basic format and customize it for their own needs and preferences.  Click here to see a sample Executive Metrics Report.  The EMR spreadsheet can be found on the CRI website under Club Operations → Resources → Benchmarks → Benchmark Spreadsheets.

The Executive Metrics Report is a significant enhancement to a club’s financial reporting and provides all stakeholders with important and timely data regarding the health and financial well-being of their club.  While it takes some effort to set up initially, the ongoing benefits for all concerned make it well worth the effort.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the club industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hardworking club managers throughout the country and around the world.

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