Direct Report: Definition and Difference From Indirect Report Operational reporting is also useful for monitoring the complete production line, measuring individual employee efficiency, and analyzing defect rates. Mathew exemplifies two trends weve uncovered in our research into C-level roles over the past 20 years. Well suggest five important areas to consider and explore the implications of each. Here are seven practical company reporting hierarchy structures to help ensure a smooth workflow: 1. While operational reporting looks at the overall function of the day-to-day business, functional reporting looks at the challenges of individual departments. If you use dotted line reporting too frequently, you run the risk of confusing employees and management. When you add a dotted line, this is a person the employee reports to on specific projects or a secondary supervisor. When I got in here, I spent the first 90 to 180 days in what I would describe as a look, listen, and learn period, Don Knauss, the chairman and CEO of Clorox, told us. Heres how Don Knauss sums up the rationale for putting functional specialists on Cloroxs top team: First, I did it to get real-time feedback on strategy and operations and on the leaders from those functions who control most of the spending and people. Because the EM has the solid line, the overall rating and salary are the EM's responsibility. The last view should show more detailed information for a bigger picture view. She recognized the importance of honing execution in three key marketsEurope, Asia Pacific, and North Americaso she brought the operating executives of those regions into her direct-report span. On average, four out of five positions added to a Fortune 500 CEOs span of control in the past 20 years have been functional specialists rather than the more traditional pickthe major business-unit head. Many executives seem to have read somewhere that seven is the right number of direct reports, or they use a successful colleagues span as a benchmarkoverlooking differences in strategies, styles, and executive-development agendas. Demystifying S4HANA Group Reporting | SAP Blogs In an environment where individuals have both a solid and a dotted line reporting relationship they always have the chance to default to the solid line boss so there are relatively few advantages to having a dotted line over perhaps having an informal virtual team relationship. The solid line manager tends to look after the objective setting and performance evaluation processes and in the event of a dispute is the manager to whom the individual will tend to defer. This is to give them easier oversight. With NetSuite, you go live in a predictable timeframe smart, stepped implementations begin with sales and span the entire customer lifecycle, so theres continuity from sales to services to support. Those reports would focus on delivery times, delivery volume, customer satisfaction and service coverage. You also run the risk that two managers both task an employee with responsibilities that, when combined, are not reasonable. Weve found that they typically consolidate direct reports to six or so and focus their time and attention on grooming one successor (traditionally the presumed successor was the COO, but the field has widened with the decline of that role) or preparing a few significant executives whove had experience running large segments of the P&L.
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functional reporting vs direct reporting