If our conventional record-keeping, reporting, and auditing is so good how come we have problems with corporate governance? Any experienced manager understands how financial statements and management reports can be properly and legally structured to deceive. Accurate and meaningful reporting is very difficult to construct and convey.

Today, every enterprise keeps records on entities or account categories that they decide that are important to them. There are accounting rules and some other generally-accepted entities that are reported by most enterprises. But, even there, measures and definitions can vary.

We need a way to make it easier to understand what is happening in any enterprise. We need to keep the right kind or records that provide the basis for consistent and understandable record-keeping across our enterprises. We need a logical way for any enterprise to plan and report what they are doing in a way that any manager can understand. We need better ways to evaluate and assess the current position against both original strategies and plans and the forecasted future. Only then can we achieve good governance that can be enforced by boards, investors, and regulators.

Filed under: Information Capital Management • Records Management

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