Definitions for TrueValueMetrics
Management Information

Management Information Management information is quite new ... while accountancy has a history going back some hundreds of years, management information is just a few decades ... and facilitated by computers and electronic data processing (EDP).

The purpose of management information The purpose of management information is to improve decision making. Management information is a tool. I often describe management information in the following manner.

“Management information is the least amount of information that enables a good decision to be made reliably and in a timely way.”

Reliable data. Good data and analysis are a good starting point for management information. Relating operational key data with accounting information makes it possible to address issues that are important and will make a difference.

Scientific rigor There is no need for expensive scientific rigor in the collection of data for management purposes. There is rather a need for relevant data that can be obtained quickly, easily and at low cost. Management information has a short 'half life'. Timely information is very valuable. Information that is late is worthless.

Accounting provides data that are a good starting point for management information. Relating operational key data with accounting information makes it possible to address issues that are important and will make a difference.