For Doc Coopers Only

Inadequate or Misleading Financial Reporting

In September 2008, Lehman Brothers, a global financial services company, declared bankruptcy after the US Federal Reserve Bank refused to bail it out. The event became a symbol of the global economic crisis that saw banks and financial institutions fail across the globe. The financial crisis once again raised questions about how companies disclose and report financial information.

Paul Miller, professor of accounting at the University of Colorado, believes that companies must respect the concerns and needs of their investors the same way they have learned to respect the concerns and needs of their customers, employees, and suppliers. He points out that companies often deliberately provide inadequate or misleading information in their financial reports, creating avoidable risks for investors.

As examples of areas that are subject to inadequate or misleading financial reporting, Professor Miller points out the treatment of “off-the-balance sheet financing” and “pension fund accounting.”

Experts like Kenneth Scott, Stanford University law professor and senior research fellow at the Hoover Institution, are calling for electronic financial reporting into a central database.

Numbers reveal important information vital to business decision making. However, numbers can also be used to hide crucial information. Should companies provide detailed narratives (not just footnotes) explaining items on their financial statements? What do you think?

“The financial crisis once again raised questions about how companies disclose and report financial information.”

Source: David Bogoslaw, ”How to Fix Financial Reporting,” in BusinessWeek: Investing, http://www.businessweek.com/investor/content/nov2008/pi2008119_257282.htm (accessed April 12, 2009).

Page 584Learning Objectives

After studying this chapter, you will know:

  Ways to analyze data, information, and logic.

  How to choose information for reports.

  Different ways to organize reports.

  How to present information effectively in reports.

  How to prepare the different components of formal reports.

Careful analysis, smooth writing, and effective document design work together to make effective reports, whether you’re writing a 2½-page memo report or a 250-page formal report complete with all the report components.

Chapter 17 covered the first two steps in writing a report:

1. Define the problem.

2. Gather the necessary data and information.

This chapter covers the last three steps:

1. Analyze the data and information.

2. Organize the information.

3. Write the report.

Using Your Time Efficiently

To use your time efficiently, think about the parts of the report before you begin writing. Much of the introduction can come from your proposal, with only minor revisions. You can write six sections even before you’ve finished your research: Purpose, Scope, Assumptions, Methods, Criteria, and Definitions.

Mock up tables and figures early. Since they provide information on which you will base your arguments or explanations, it is important to arrange data logically and plan how you will use them in the report. As you tally and analyze the data, prepare your figures and tables, and a complete list of references. The background reading for your proposal can form the first draft of your list of references. Save a copy of your questionnaire or interview questions to use as an appendix. You can print appendixes before the final report is ready if you number their pages separately. Appendix A pages would be A-1, A-2, and so forth; Appendix B pages would be B-1, B-2, and so forth.

You can write the title page and the transmittal as soon as you know what your recommendation will be.

After you’ve analyzed your data, write the body, the conclusions and recommendations, and the executive summary. Prepare a draft of the table of contents and the list of illustrations.

When you write a long report, list all the sections (headings) that your report will have. Mark those that are most important to your reader and your logic, and spend most of your time on them. Write the important sections early. That way, you won’t spend all your time on Background or History of the Problem. Instead, you’ll get to the meat of your report.

Page 585Analyzing Data and Information for Reports

Good reports begin with good data. Analyzing the data you have gathered is essential to produce the tight logic needed for a good report. Analyze your data with healthy skepticism. Check to see that they correspond with expectations or other existing data. If they don’t, check for well-supported explanations of the difference.

Spreadsheets can be particularly troublesome. Cell results derived by formulas can be subtly, or grossly, wrong by incorrectly defining ranges, for example. It is easy to generate results that are impossible, such as sums that exceed known totals. Always have an estimate of the result of a calculation. Using spreadsheets, you can easily be wrong by a factor of 10, 100, or 1,000. Results produced by this kind of error are wrong at best, and can be ludicrous and embarrassing. One study found that 30% of spreadsheets had errors, such as misplaced decimal points, transposed digits, and wrong signs, built into their rules.1 Some of these errors are enormous. Former accounting giant Arthur Andersen made a $644 million one on a NASA audit.2

Try to keep ball-park figures, estimates of what the numbers should be, in mind as you look at numerical data. Question surprises before accepting them.

Analyzing data can be hard even for experts. New techniques continually appear, allowing experts to challenge earlier conclusions. One example is the Number Needed to Treat (NNT), a new measure of drug effectiveness developed within the past 20 years. Most clinical trials answer the question, “Will patients on this drug do better than those taking a placebo?” For statins, drugs to reduce high cholesterol, the answer is yes: you may see 30% fewer heart attacks, depending on the particular trial. Sounds great, yes? But how many of those people would have had heart attacks in the first place? If the number is very small, 30% fewer isn’t much of a decrease, particularly considering the cost of statins and possible side effects including liver damage. The NNT asks, “How many people have to take this drug to avoid one heart attack?” For statins, the answer is about 50, much different odds and more food for thought for America’s aging population as it decides whether or not to take more prescriptions.3

Numerous studies exist in scholarly journals challenging the data-based conclusions of earlier articles. One example is the fate of unmarried, college-educated women over 30. A famous Newsweek cover story, “Too Late for Prince Charming?” reported the Yale and Harvard study that suggested such women had only a 20% chance of finding husbands, and only a 2.6% chance by the time they reached 40. Twenty years later an economist at the University of Washington examined 30 years of census data. Her figures for the decade of the original study showed that women aged 40–44 with advanced degrees were only 25% less likely to be married than comparably aged women with just high school diplomas. By 2000, those women with postcollege education were slightly more likely to be married than those who had finished only high school.4

Measuring Innovation

It is commonly accepted wisdom that one measure of a company’s innovation is the number of patents it commands. In recent years, however, research has shown that companies increasingly use patents as a defensive strategy rather than a strategy for innovation.

A Boston University study found that software companies with more patents actually reduced their research and development expenditure vis-à-vis sales. Additionally, with companies vying for patents for the smallest addition to product features, patents may be a dubious measure of innovation.

Compared to patents themselves, patent citations, or the references to a company’s patent by patents of other companies, may be a better metric of innovation. A high number of patent citations may show that the company’s patent truly represents innovation and may be licensed for a fee or royalties. Companies such as Procter & Gamble have adopted this strategy.

Recent studies on patents also show a growing trend of acquiring patents on design or form of products rather than their technical aspects. Companies such as Samsung Electronics and Nike have earned a name for themselves for innovation by acquiring patents based on product design.

Adapted from Jena McGregor, “Are Patents the Measure of Innovation?” in BusinessWeek: Innovation: May 4, 2007, http://www.businessweek.com/innovate/content/may2007/id20070504_323562.htm (accessed April 12, 2009).

Identifying the Source of the Data

Check to be sure that your data come from a reliable source. Use the strategies outlined in Chapter 17 to evaluate Web sources (p. 534). When the source has a vested interest (p. 474) in the results, scrutinize the data with special care. To analyze a company’s financial prospects, use independent information as well as the company’s annual report and press releases.

Drug and medical device companies, and the researchers funded by them, keep appearing in the news with reports of undue influence. Duke University Page 586researchers checked 746 studies of heart stents published in one year in medical journals. They found that 83% of the papers did not disclose whether authors were paid consultants for companies, even though many journals require that information. Even worse, 72% of the papers did not say who funded the research.5 A study in the prestigious New England Journal of Medicine noted that positive studies of antidepressant trials got published and negative ones did not: “According to the published literature, it appeared that 94% of the trials conducted were positive. By contrast, the FDA analysis showed that 51% were positive.”6

If your report is based upon secondary data from library and online research, look at the sample, the sample size, and the exact wording of questions to see what the data actually measure. (See Chapter 17 for more information on sampling and surveying.) Does the sample have a built-in bias? A survey of city library users may uncover information about users, but it may not find what keeps other people away from the library.

For many kinds of research, a large sample is important for giving significant results. Nielsen Media Research collects about 2 million television viewing diaries annually to gather viewing data. The large numbers also allow it to provide viewing information for local stations and their advertisers.7

A survey that has been the target of much questioning in the press is the one behind the annual college rankings of US News & World Report. Critics charge that the rankings are based far too heavily on opinion (peer evaluations from other schools), uncorroborated data supplied by the schools themselves, and irrelevant data (such as rates of alumni giving). Critics also charge schools with gaming the system through practices such as heavy solicitation of students who have almost no chance of being accepted (low acceptance rates help schools’ rankings).8

Identify exactly what the data measure. When advertisers began to place messages on the Internet, they soon realized that they had a measurement problem. The tools they used to measure viewer response counted the number of people who clicked on an ad that delivered them to the advertiser’s Web site. In most cases, of course, advertisers want more than Web site visitors; they want people to buy from the company. Now more sophisticated tools can keep track of the percentage of people who click on the ad and then make a purchase at the company’s Web site. Advertisers can use this information to test different versions of their advertising, so they use only the most profitable versions. At the same time, the companies that sell online advertising complain that these measures are unfair because they hold Internet advertising to a higher standard. Other media, such as magazines and television, merely estimate the number of people who see an ad, not the percentage who make a purchase.9

Identify the assumptions used in analyzing the data. When Nielsen Media Research estimates the number of people who view television stations, it must make a number of assumptions. The company has to determine how well its People Meter actually tracks whether people are watching, and it has to make decisions about how to count groups that are hard to measure. Nielsen has reported that 18- to 34-year-old males are watching less television, in part because they spend more time with videogames and DVDs. However, television networks complained that the company was underreporting this group’s hours for a variety of reasons. For example, Nielsen was not counting young people who leave for college, and its sample did not include homes with TiVo or other personal video recorders (devices that make measurement more difficult). Because of such differences, the networks, Nielsen, and advertisers disagree about whether young men are losing interest in television programming.10 Nielsen continually refines the ways it collects data. Since its original report on young men, for instance, it has started measures to track college students’ viewing. Those efforts have increased ratings for some shows by more then 35%.11

Getting the Right Data

Surveys are often used to measure consumer satisfaction, asking people to rate products and services. However, does high customer satisfaction also mean that the quality of the product or service is also high? In a recent study, medical researchers found no correlation between patient satisfaction and the quality of the care received. Those patients that rated the quality of their care as 10 (on a scale of 1 to 10) were no more likely to have received better care than those who gave it a 5.

This example shows some of the thorny issues associated with surveys. First, because surveys are easy to get and report, they are popular. But people who respond to surveys tend to be those who are satisfied with the product or service. In addition, relying on survey data can exclude other important findings. As in the case in medical research, customer satisfaction can mean something very different than the quality of medical care received.

Given these complexities, how can surveys be used effectively?

Adapted from David Wessel, “In Health Care, Consumer Theory Falls Flat,” Wall Street Journal, September 7, 2006, A2.

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Sharp uses what it calls “academic marketing” to sell air purifiers in Japan. Ads in Japanese newspapers and magazines provide data, diagrams, and charts in support of Sharp’s plasmacluster technology.

Source: Daisuke Wakabayashi, “Using ‘Academic Marketing’ to Sell Air Purifiers,” Wall Street Journal, December 26, 2008, B4.

Sun and Statistics

Recent research suggests that patients with low levels of vitamin D, which can be gained from moderate exposure to the sun, have higher risks of cancer, heart disease, and autoimmune disorders.

The Indoor Tanning Association quickly jumped at this new finding. They used their interpretation of the statistics about low vitamin D levels as a way to promote indoor tanning, suggesting that UV rays can prevent cancer.

The medical community was outraged at the ITA’s twisted approach to the statistics. Doctor Lichtenfeld of the American Cancer Society suggested that UV ray promotion was “like recommending smoking to reduce stress.” The ITA advertisements failed to suggest there were any downsides to tanning, such as the link between prolonged exposure to UV rays and melanoma. They also omitted that the tanner the skin, the longer it takes to absorb vitamin D.

How ethical is the ITA’s use of research statistics? Would you be more likely to tan indoors if you saw one of their advertisements?

Adapted from Pat Wingert, “Teens, Tans, and Truth,” Newsweek, May 19, 2008, 42–43.

Analyzing Numbers

Many reports analyze numbers—either numbers from databases and sources or numbers from a survey you have conducted. The numerical information, properly analyzed, can make a clear case in support of a recommendation. Suppose, for example, you are trying to make your company’s Web site easier to use. In your report, you might want to include numbers from Jakob Nielsen that using Web sites is 206% harder for people with disabilities and 122% harder for elderly people.12 These numbers are striking because they are large and because they are quite different. They make the case that some groups are having great difficulty with Web sites; if your company cares about serving these groups, it would be worthwhile to find out how to make your company’s Web site easier for them to use. Also, depending on your team’s objectives, you might decide to focus more on people with disabilities (because they have much more difficulty) or to focus more on elderly computer users (because they are a larger part of the population). The next steps would include finding out why these groups have trouble and how to make your company’s Web site more user friendly. (The Web Accessibility Initiative provides excellent material on how to make Web sites accessible to the disabled: http://www.w3.org/WAI/intro/accessibility.php)

Recognize that even authorities can differ on the numbers they offer, or on the interpretations of the same data sets. Researchers from the United Nations and Johns Hopkins University differed on their estimates of Iraqi deaths in Page 588the war by 500% (see sidebar on this page).13 The cover story of the January 4, 2008, National Journal was an explanation of how the two estimates could vary so wildly (research design and execution flaws; sampling error; lack of transparency with the data).14 You will be best able to judge the quality of data if you know how it was collected.

In their books, The Tipping Point and Freakonomics, Malcolm Gladwell and Steven D. Levitt and Stephen J. Dubner reach different conclusions about the data on dropping crime rates for New York City. Gladwell attributes the drop to the crackdown by the new police chief on even minor crimes such as graffiti and public drunkenness. Levitt and Dubner first explain why the cause was not a crackdown on crime (the years don’t match well; other cities also experienced the drop) and attribute it to the legalization of abortion (at the time of the crime drop the first wave of children born after Roe v. Wade was hitting late teen years and thus prime crime time; that group was short on the category most likely to become criminal: unwanted children). They also provide corroborating evidence from other countries.15

If you’ve conducted a survey, your first step in analyzing your numbers is to transfer the responses on the survey form into numbers. For some categories, you’ll assign numbers arbitrarily. For example, you might record men as 1 and women as 2—or vice versa. Such assignments don’t matter, as long as you’re consistent throughout your project. In these cases, you can report the number and percentage of men and women who responded to your survey, but you can’t do anything else with the numbers.

When you have numbers for salaries or other figures, start by figuring the average (or mean), the median, and the range. The average or mean is calculated by adding up all the figures and dividing by the number of samples. The mode is the number that occurs most often. The median is the number that is exactly in the middle. When you have an odd number of observations, the median will be the middle number. When you have an even number, the median will be the average of the two numbers in the center. The range is the difference between the high and low figures for that variable.

Averages are particularly susceptible to a single extreme figure. In 2007, three different surveys reported the average cost of a wedding at nearly $30,000. Many articles picked up that figure because weddings are big business. However, the median cost in those three surveys was only about $15,000. And even that is probably on the high side, since the samples were convenience samples for a big wedding Web site, a bride magazine, and a maker of wedding invitations.16

Figure 19.1 shows the raw data that a student recorded in a report evaluating a hospital’s emergency room procedures. To analyze the data, we could rearrange them, listing them from low to high (see Figure 19.2). The average waiting time is 26.6 minutes, but the median (the middle number) is only 22.

Finding the average takes a few more steps when you have different kinds of data. For example, it’s common to ask respondents whether they find a feature “very important,” “somewhat important,” or “not important.” You might code “very important” as “3,” “somewhat important” as “2,” and “not important” as “1.” To find the average in this kind of data,

1. For each response, multiply the code (“1,” “2,” or “3”) by the number of people who gave that response.

2. Add up the figures.

3. Divide by the total number of people responding to the question.

Figure 19.1  Raw Data from Observations for a Report

Charity Data

Many people believe they “know” “facts” and figures that are not so. When you encounter these false beliefs, you need to be sure you provide reliable data to counteract them. One area subject to common misperceptions is charity donations. Below are some common myths paired with realities. Myth: Most charitable giving goes to help the needy. Reality: Less than one-third of individually donated money to nonprofits goes to the economically disadvantaged. And only 8% provides basic needs like food and shelter.

Myth: The wealthy look after those in need. Reality: Only about a quarter of their donations go to the poor, and only 4% to basic needs.

Myth: Religious donations go to those in need. Reality: Less than one-fifth of money donated goes to the poor.

Myth: Americans give generously to international causes. Reality: Only 8% of US individual donations support any international cause whatsoever.

Adapted from Sheryl Sandberg [board member of Google.org, Google’s philanthropic arm], “The Charity Gap,” Wall Street Journal, April 4, 2007, A15.

Figure 19.2  Rearranging Data to Find the Average (Mean), Mode, and Median

For example, suppose you have the following data after selecting a random sample and surveying 50 people about the features they want in a proposed apartment complex:

Following step 1, to get the average for “party house,” multiply 3 × 26 = 78; 2 × 12 = 24; and 1 × 13 = 13. Then add 78 + 24 + 13 = 115. Divide by the number of people answering the question and you get the average for that factor: 115 divided by 50 = 2.3. Repeat the process for the next factor, “extra parking”: 3 × 26 = 78; 2 × 23 = 46; 1 × 1 = 1. Adding 78 + 46 + 1 = 125; dividing by 50 = 2.5.

The average then gives an easy way to compare various features. If the party house averages 2.3 while extra parking for guests is 2.5, you know that your respondents would find extra parking more important than a party house. (Whether the difference is significant or not is a statistics question.) You can now arrange the factors in order of importance:

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Table 4. “How Important Is Each Factor to You in Choosing an Apartment?”

	n = 50; 3 = “Very Important”
Extra parking for guests	2.5
Party house	2.3
Pool	2.2
Convenient to bus line	2.0

Often it’s useful to simplify numerical data: rounding it off, combining similar elements. Then you can see that one number is about 2½ times another. Charting it can also help you see patterns in your data. (See Chapter 9 for a full discussion of charts as a way of analyzing and presenting numerical data.) Look at the raw data as well as at percentages. For example, a 50% increase in shoplifting incidents sounds alarming. An increase from two to three shoplifting incidents sounds less so but is the same data stated differently.

Both numbers and words require interpretation and context to have meaning. Consider the data collected by the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA). For each year, the NHTSA gathers and reports statistics on the number of motor vehicle accident fatalities, breaking down the data by type of accident, type of vehicle, and state. In 2003 the agency determined that 42,643 people died in traffic accidents in the United States. When the data were ready, the NHTSA news release proclaimed, “DOT Announces Historic Low Highway Fatality Rate in 2003.” The release quoted Transportation Secretary Norman Mineta as saying, “America’s roads are safer than ever.” The “historic low” was a rate of 1.48 per 100 million vehicle miles traveled, the first time that rate had been less than 1.5 since the NHTSA began gathering the data. A columnist for the Wall Street Journal acknowledged the good news but observed that the rate of decline was just 0.8%. The NHTSA news release emphasized reasons for the decline in fatalities (more seat belt use and stiffer drunk-driving laws), whereas the Wall Street Journal highlighted reasons for the small size of the decline (the popularity of SUVs and pickups, whose fatality rates are declining but are higher than those for passenger cars).17

The same numbers can be presented in different ways to create very different impressions. In the case of the NHTSA data, the Kansas City Star and Time magazine prepared articles emphasizing not the overall decline in fatalities, but the difference between the fatality rates observed for passenger cars and SUVs. Both articles mentioned that people are “11% more likely to die” in a crash if they are driving an SUV rather than an automobile. A story in Forbes magazine, however, called SUVs “slightly more dangerous” but focused on additional data comparing various types of crashes. The Forbes article emphasized that in crashes between a light truck and a passenger car, if someone died, that person usually was an occupant of the car. The article listed the number of deaths recorded in each type of crash but not the percentage of fatalities (13%) in crashes between cars and light trucks.18 In each of these examples, the publication used the same data to reach a conclusion that is more dramatic than a decline in fatalities of less than 1%.

A common myth associated with numbers is that numbers are more objective than words: “numbers don’t lie.” But as the above examples show, numbers can be subject to widely varying interpretation.

Measure What Matters

It sounds obvious: Find out whether your customers are satisfied, because satisfied customers will buy from you again and again, helping your profits grow. It sounds so obvious that big companies pay generous fees to researchers who create sophisticated measures of customer satisfaction.

It sounds obvious, but it’s wrong. Frederick Reichheld compared consumers’ answers to questions about customer satisfaction and loyalty with measures of their actual purchases and their memory of referring others to the company. He found little relationship between stated satisfaction and repeat purchases. Instead, the best predictor of repeat purchases was a favorable response to “How likely is it that you would recommend [company X] to a friend or colleague?” People who would recommend the company were also likely to buy from it again.

Responses fell into three clusters: promoters, defined as the customers who were extremely likely to recommend (choosing 9 or 10 on a 10-point scale), those who were less likely (“passively satisfied,” at 7 or 8), and the remainder of the customers. The greater the share of customers who are promoters, the faster a company’s revenues grow.

Over the three years studied, companies with many promoters included Southwest Airlines, Earthlink, and Enterprise Rent-ACar, and all of them grew much faster than their competitors. Reichheld’s advice to companies looking for growth: Skip the fancy questionnaires, and just ask customers if they will recommend your company.

Adapted from Frederick F. Reichheld, “The One Number You Need to Grow,” Harvard Business Review 81, no. 12 (December 2003): 46–54.

Page 591Analyzing Words

If your data include words, try to find out what the words mean to the people who said them or responded to them. An effort to measure the effectiveness of four TV commercials in Australia asked whether each commercial “encourages me to try/buy the brand product.” The question is ambiguous. Some consumers might think the researcher wants to know whether the ad is obviously a sales pitch. (Is the ad “encouraging me to buy” or just trying to make me feel good?) Others might think the question is asking about how effective the ad is in persuading the consumer. (Did the ad succeed at encouraging me, or did it fail?) This question therefore might measure either the commercials’ content or their ability to persuade, depending on how people interpret the words.19

Also try to measure words against numbers. A study of annual reports in the United Kingdom from 1965 to 2004 found a large increase (375%) in narrative information and noted that accounting narratives were being used to manage impressions of annual performance.20

Analyzing Patterns

Patterns can help you draw meaning from your data. If you have library sources, on which points do experts agree? Which disagreements can be explained by early theories or numbers that have now changed? Which disagreements are the result of different interpretations of the same data? Which are the result of having different values and criteria? In your interviews and surveys, what patterns do you see?

   Have things changed over time?

   Does geography account for differences?

   Do demographics such as gender, age, or income account for differences?

   What similarities do you see?

   What differences do you see?

   What confirms your hunches?

   What surprises you?

Many descriptions of sales trends are descriptions of patterns derived from data.

Checking Your Logic

State accurately what your data show. For example, suppose that you’ve asked people who use computers if they could be as productive without them and the overwhelming majority say no. This finding shows that people believe that computers make them more productive, but it does not prove that they in fact are more productive.

Be sure you are clear about definitions on which data are based. For instance, China and the United States are jockeying for first place in number of Internet users. Different sources give different results, and one reason is that they are defining “Internet user” in different ways: Is a user anyone who has access to the Internet at home, school, or work? What about a four-year-old child who has access to the Internet through her family but does not use it? Is anyone who has used the Internet only once in the past six months a user?21

Don’t confuse causation with correlation. Causation means that one thing causes or produces another. Correlation means that two things happening at the same time are positively or negatively related. One might cause the other, Page 592but both might be caused by a third. For instance, consider a study that shows pulling all-nighters hurts grades: students who pull all-nighters get lower grades than those who do not pull all-nighters. But maybe it is not the allnighter causing the poor grades; maybe students who need all-nighters are weaker students to begin with.

Correlation and causation are easy to confuse, but the difference is important. The Census Bureau publishes figures showing that greater education levels are associated with greater incomes. A widely held assumption is that more education causes greater earnings. But might people from richer backgrounds seek more education? Or might some third factor, such as intelligence, lead to both greater education and higher income?22

Some spurious correlations are amusing. The Wall Street Journal reported with tongue in cheek the Tiger Woods phenomenon. During the 11 years of 1997–2008, the April bond market performed positively when Woods won the Masters golf tournament, and negatively when he did not.23

Consciously search for at least three possible causes for each phenomenon you’ve observed and at least three possible solutions for each problem. The more possibilities you brainstorm, the more likely you are to find good options. In your report, discuss in detail only the possibilities that will occur to readers and that you think are the real reasons and the best solutions.

When you have identified causes of the problem or the best solutions, check these ideas against reality. Can you find support in references or in numbers? Can you answer claims of people who interpret the data in other ways?

Make the nature of your evidence clear to your reader. Do you have observations that you yourself have made? Or do you have inferences based on observations or data collected by others? Old data may not be good guides to future action.

If you can’t prove the claim you originally hoped to make, modify your conclusions to fit your data. Even when your market test is a failure or your experiment disproves your hypothesis, you can still write a useful report.

   Identify changes that might yield a different result. For example, selling the product at a lower price might enable the company to sell enough units.

   Divide the discussion to show what part of the test succeeded.

   Discuss circumstances that may have affected the results.

   Summarize your negative findings in progress reports to let readers down gradually and to give them a chance to modify the research design.

   Remember that negative results aren’t always disappointing to the audience. For example, the people who commissioned a feasibility report may be relieved to have an impartial outsider confirm their suspicions that a project isn’t feasible.

As employees become buried in paperwork, it becomes even more important to select carefully and interpret clearly the information to be included in reports.

Tapping into the Research Experts

Where else can you go besides Google to find the information you need for your next report? You might try your local library. While you can find a wealth of information on Google, libraries subscribe to commercial databases that can give you access to powerful tools for writing your company’s business or marketing plan. An added plus is that librarians are experts at navigating those databases.

Small business owners, in particular, can benefit. Many libraries even hold classes for entrepreneurs and provide networking opportunities with other local agencies and organizations geared to help the small business person. So the next time you are working out a business problem, visit your local library.

Adapted from Tara Siegel Bernhard, “Enterprise: Big Help for Small Businesses at the Library; Commercial Databases, Assistance on Research and Classes Are Offered,” Wall Street Journal, August 29, 2006, B4.

Page 593Choosing Information for Reports

Don’t put information in reports just because you have it or just because it took you a long time to find it. Instead, choose the information that your reader needs to make a decision. NASA received widespread criticism over the way it released results from an $11.3 million federal air safety study. NASA published 16,208 pages of findings with no guide to understanding them. Critics maintain the lapse was deliberate because the data contained hundreds of cases of pilot error.24

If you know your readers well, you may know what their priorities are. For example, the supervisor of a call center knows that management will be looking for certain kinds of performance data, including costs, workload handled and forecast, and customer satisfaction. To write regular reports, the supervisor would set up a format in which it is easy to see how well the center is doing in each of these areas. Using the same format month after month simplifies the reader’s task. Presenting the actual performance alongside objectives helps managers focus on major successes and failures. The supervisor also would highlight and explain any unusual data, such as an unexpected surge in volume or a one-time expense.25

If you don’t know your readers, you may be able to get a sense of what is important by showing them a tentative table of contents (a list of your headings) and asking, “Have I included everything?” When you cannot contact an external audience, show your draft to colleagues and superiors in your organization.

How much information you need to include depends on whether your audience is likely to be supportive, neutral, or skeptical. If your audience is likely to be pleased with your research, you can present your findings directly. If your audience will not be pleased, you will need to explain your thinking in a persuasive way and provide substantial evidence.

You must also decide whether to put information in the body of the report or in appendixes. Put material in the body of the report if it is crucial to your proof, if your most significant readers will want to see it there, or if it is short. (Something less than half a page won’t interrupt the reader.) Frequently decision makers want your analysis of the data in the report body rather than the actual data itself. Supporting data that will be examined later by specialists such as accountants, lawyers, and engineers are generally put in an appendix.

Anything that a careful reader will want but that is not crucial to your proof can go in an appendix. Appendixes can include

   A copy of a survey questionnaire or interview questions.

   A tally of responses to each question in a survey.

   A copy of responses to open-ended questions in a survey.

   A transcript of an interview.

   Computer printouts.

   Complex tables and visuals.

   Technical data.

   Previous reports on the same subject.

Organizing Information in Reports

Most sets of data can be organized in several logical ways. Choose the way that makes your information easiest for the reader to understand and use. If you were compiling a directory of all the employees at your plant, for example, alphabetizing by last name would be far more useful than listing people by height, social security number, or length of service with the company, although those organizing principles might make sense in other lists for other purposes.

In one company, a young employee comparing the economics of two proposed manufacturing processes gave his logic and his calculations in full before getting to his conclusion. But his superiors didn’t want to wade through eight single-spaced pages; they wanted his recommendation up front.26

The following three guidelines will help you choose the arrangement that will be the most useful for your audience:

1. Process your information before you present it to your audience. The order in which you became aware of information usually is not the best order to present it to your audience.

2. When you have lots of information, group it into three to seven categories. The average person’s short-term memory can hold only seven chunks, though the chunks can be of any size.27 By grouping your information into seven categories (or fewer), you make your report easier to comprehend.

3. Work with the audience’s expectations, not against them. Introduce ideas in the overview in the order in which you will discuss them.

Basic Patterns for Organizing Information

Eight basic patterns for organizing information are particularly useful in reports:

1. Comparison/contrast.

2. Problem-solution.

3. Elimination of alternatives.

4. SWOT analysis.

5. General to particular or particular to general.

6. Geographic or spatial.

7. Functional.

8. Chronological.

Any of these patterns can be used for a whole report or for only part of it.

1. Comparison/contrast

Many reports use comparison/contrast sections within a larger report pattern. Comparison/contrast can also be the purpose of the whole report. Feasibility studies usually use this pattern. You can focus either on the alternatives you are evaluating or on the criteria you use. See Figure 19.3 for examples of these two patterns in a report.

Focus on the alternatives when

   One alternative is clearly superior.

   The criteria are hard to separate.

   The reader will intuitively grasp the alternative as a whole rather than as the sum of its parts.

Figure 19.3 Two Ways to Organize a Comparison/Contrast Report

Page 595

Focus on the criteria when

   The superiority of one alternative to another depends on the relative weight assigned to various criteria. Perhaps Alternative A is best if we are most concerned about Criterion 1, cost, but worst if we are most concerned about Criterion 2, proximity to target market.

   The criteria are easy to separate.

   The reader wants to compare and contrast the options independently of your recommendation.

A variation of the comparison/contrast pattern is the pro-and-con pattern. In this pattern, under each specific heading, give the arguments for and against that alternative. A report recommending new plantings for a university quadrangle uses the pro-and-con pattern:

Advantages of Monocropping

High Productivity

Visual Symmetry

Disadvantages of Monocropping

Danger of Pest Exploitation

Visual Monotony

This pattern is least effective when you want to deemphasize the disadvantages of a proposed solution, for it does not permit you to bury the disadvantages between neutral or positive material.

Page 5962. Problem-solution

Identify the problem; explain its background or history; discuss its extent and seriousness; identify its causes. Discuss the factors (criteria) that affect the decision. Analyze the advantages and disadvantages of possible solutions. Conclusions and recommendation can go either first or last, depending on the preferences of your reader. This pattern works well when the reader is neutral.

A report recommending ways to eliminate solidification of a granular bleach during production uses the problem-solution pattern:

Glass Ceilings?

Researchers not only write reports about their data, they also use reports to gather data. In a recent study, researchers from Dartmouth’s Tuck School of Business and Loyola University–Chicago investigated proxy statements and Securities and Exchange Commission reports to gather data about the status of female CEOs.

Researchers categorized and ranked biographical data by gender, age, and tenure of executives from the largest 942 US companies to predict the rate at which female executives will advance to become CEOs. In 2000, 0.6 % of board chairs and CEOs were women. By 2016, the proportion of females in those top positions is projected to be 6.2 percent. They concluded that “despite advances in the corporate sphere, it’s still lonely at the top for female CEOs—and will be for at least another decade.”

Adapted from Elizabeth Woyke, “Glass Ceilings: Corner Office Crawl,” BusinessWeek, December 4, 2006, 14.

Recommended Reformulation for Vibe Bleach

Problems in Maintaining Vibe’s Granular Structure

Solidification during Storage and Transportation

Customer Complaints about “Blocks” of Vibe in Boxes

Why Vibe Bleach “Cakes”

Vibe’s Formula

The Manufacturing Process

The Chemical Process of Solidification

Modifications Needed to Keep Vibe Flowing Freely

3. Elimination of alternatives

After discussing the problem and its causes, discuss the impractical solutions first, showing why they will not work. End with the most practical solution. This pattern works well when the solutions the reader is likely to favor will not work, while the solution you recommend is likely to be perceived as expensive, intrusive, or radical.

A report on toy commercials, “The Effect of TV Ads on Children,” eliminates alternatives:

Alternative Solutions to Problems in TV Toy Ads

Leave Ads Unchanged

Mandate School Units on Advertising

Ask the Industry to Regulate Itself

Give FCC Authority to Regulate TV Ads Directed at Children

4. SWOT Analysis

A SWOT analysis is frequently used to evaluate a proposed project, expansion, or new venture. The analysis discusses Strengths, Weaknesses, Opportunities, and Threats of the proposed action. Strengths and weaknesses are usually factors within the organization; opportunities and threats are usually factors external to the organization.

A report recommending an in-house training department uses a SWOT analysis to support its recommendation:

Advantages of In-House Training Disadvantages of In-House Training Competitor Training Businesses Opportunities for Training Expansion

Page 597This report switches the order of threats (Competitor Training Businesses) and opportunities in order to end with positive information.

5. General to particular or particular to general

General to particular starts with the problem as it affects the organization or as it manifests itself in general and then moves to a discussion of the parts of the problem and solutions to each of these parts. Particular to general starts with the problem as the audience defines it and moves to larger issues of which the problem is a part. Both are good patterns when you need to redefine the reader’s perception of the problem to solve it effectively.

The directors of a student volunteer organization, VIP, have defined their problem as “not enough volunteers.” After studying the subject, the writer is convinced that problems in training, supervision, and campus awareness are responsible for both a high dropout rate and a low recruitment rate. The general-to-particular pattern helps the audience see the problem in a new way:

Why VIP Needs More Volunteers

Why Some VIP Volunteers Drop Out

Inadequate Training

Inadequate Supervision

Feeling That VIP Requires Too Much Time

Feeling That the Work Is Too Emotionally Demanding

Why Some Students Do Not Volunteer

Feeling That VIP Requires Too Much Time

Feeling That the Work Is Too Emotionally Demanding

Preference for Volunteering with Another Organization

Lack of Knowledge about VIP Opportunities

How VIP Volunteers Are Currently Trained and Supervised

Time Demands on VIP Volunteers

Emotional Demands on VIP Volunteers

Ways to Increase Volunteer Commitment and Motivation

Improving Training and Supervision

Improving the Flexibility of Volunteers’ Hours

Providing Emotional Support to Volunteers

Providing More Information about Community Needs and VIP Services

Annual Reports

  Report Watch posts annual lists of the best annual reports. They also post tips for creating good annual reports:

   Start with an eye-catching, interest-grabbing cover.

   Live up to the cover’s promise in the body of the report.

   Don’t just give a 10-K or 20-F.

   Offer a longer-term, strategic view in addition to information about the past year.

   Use a clear, readable style.

Adapted from Report Watch, “Report Essentials,” in Report Essentials, http://www.reportwatch.net/report-essentials/ (accessed April 11, 2009).

6. Geographic or spatial

In a geographic or spatial pattern, you discuss problems and solutions by units according to their physical arrangement. Move from office to office, building to building, factory to factory, state to state, region to region, etc.

A sales report uses a geographic pattern of organization:

Sales Have Risen in the European Community Sales Are Flat in Eastern Europe Sales Have Fallen Sharply in the Middle East Sales Are Off to a Strong Start in Africa Sales Have Risen Slightly in Asia Sales Have Fallen Slightly in South America Sales Are Steady in North America

7. Functional

In functional patterns, discuss the problems and solutions of each functional unit. For example, a small business might organize a report to its venture capitalists by the categories of research, production, and marketing. A government report might divide data into the different functions an agency performed, taking each in turn:

Major Accomplishments FY 10

Regulation

Education

Research

International coordination

Failure Isn’t Final

Researchers write closure reports when the company decides that the project they’re working on isn’t feasible. However, a few years later, new technologies, new conditions, or new ideas may make a “failed” idea feasible.

Post-It® notes use a “failed” adhesive because one 3M employee saw the weak adhesive as a solution to a problem:

I was singing in the choir in my church. . . . I would mark the pages with little pieces of paper normally. And sometimes they would fall out. . . . I thought what I really need is . . . a bookmark that’s going to stick to those pages . . . and still not damage the book when I pull them off. . . . I knew that Spence Silver back in our laboratory had just developed an adhesive that would do that. And I made . . . rough samples of the bookmarks. . . . I had also made up some larger sizes and found, hey, these are really handy for notes.

An adhesive that failed in its original application was a spectacular success in a new and highly profitable product.

Adapted from John Nathan, In Search of Excellence (Waltham, MA: Nathan/Tyler Productions, 1985), 9.

8. Chronological

A chronological report records events in the order in which they happened or are planned to happen. Many progress reports are organized chronologically:

Work Completed in October Work Planned for November

If you choose this pattern, be sure you do not let the chronology obscure significant points or trends.

Specific Varieties of Reports

Informative, recommendation, and justification reports will be more successful when you work with the readers’ expectations for that kind of report.

Informative and closure reports

Informative and closure reports summarize completed work or research that does not result in action or recommendation.

Informative reports often include the following elements:

   Introductory paragraph summarizing the problems or successes of the project.

   Purpose and scope section(s) giving the purpose of the report and indicating what aspects of the topic it covers.

   Chronological account of how the problem was discovered, what was done, and what the results were.

   Concluding paragraph with suggestions for later action. In a recommendation report, the recommendations would be based on proof. In contrast, the suggestions in a closure or informative report are not proved in detail.

Figure 19.4 presents this kind of informative closure report.

Closure reports also allow a firm to document the alternatives it has considered before choosing a final design.

Recommendation reports

Recommendation reports evaluate two or more alternatives and recommend one of them. (Doing nothing or delaying action can be one of the alternatives.)

Page 599Figure 19.4 An Informative Memo Report Describing How a Company Solved a Problem

Recommendation reports normally open by explaining the decision to be made, listing the alternatives, and explaining the criteria. In the body of the report, each alternative will be evaluated according to the criteria using one of the two comparison/contrast patterns. Discussing each alternative separately is better when one alternative is clearly superior, when the criteria interact, or when each alternative is indivisible. If the choice depends on Page 602the weight given to each criterion, you may want to discuss each alternative under each criterion.

Whether your recommendation should come at the beginning or the end of the report depends on your reader and the culture of your organization. Most readers want the “bottom line” up front. However, if the reader will find your recommendation hard to accept, you may want to delay your recommendation until the end of the report when you have given all your evidence.

Justification reports

Justification reports justify a purchase, investment, hiring, or change in policy. If your organization has a standard format for justification reports, follow that format. If you can choose your headings and organization, use this pattern when your proposal will be easy for your reader to accept:

1. Indicate what you’re asking for and why it’s needed. Since the reader has not asked for the report, you must link your request to the organization’s goals.

2. Briefly give the background of the problem or need.

3. Explain each of the possible solutions. For each, give the cost and the advantages and disadvantages.

4. Summarize the action needed to implement your recommendation. If several people will be involved, indicate who will do what and how long each step will take.

5. Ask for the action you want.

If the reader will be reluctant to grant your request, use this variation of the problem-solving pattern described in Chapter 16 (p. 479):

1. Describe the organizational problem (which your request will solve). Use specific examples to prove the seriousness of the problem.

2. Show why easier or less expensive solutions will not solve the problem.

3. Present your solution impersonally.

4. Show that the disadvantages of your solution are outweighed by the advantages.

5. Summarize the action needed to implement your recommendation. If several people will be involved, indicate who will do what and how long each step will take.

6. Ask for the action you want.

How much detail you need to give in a justification report depends on the corporate culture and on your reader’s knowledge of and attitude toward your recommendation. Many organizations expect justification reports to be short—only one or two pages. Other organizations may expect longer reports with much more detailed budgets and a full discussion of the problem and each possible solution.

The Importance of Annual Reports

A survey, conducted by WithumSmith & Brown and MGT Design Inc., found that the annual report is the most important publication that a company produces. To understand the value of annual reports, the survey asked individual investors, portfolio managers, and securities analysts (the primary audiences for annual reports) about the ways that they read and use the reports to make decisions.

Here are some of their findings:

   75% said the annual report is the most important publication that a company produces.

   79% said the annual report is an important tool for investment decisions.

   66% prefer photos and/or illustrations in annual reports.

   90% said that important concerns facing the industry, such as environment issues and corporate governance, should be addressed in the report.

   81% prefer a print version over electronic versions. Respondents said the print documents were easier to read, highlight, annotate, and file.

Taken together, these findings suggest that the annual report is an important communication for organizations and well worth the time spent creating it.

Adapted from Kirk Holderbaum, “Survey Reveals Importance of Corporate Annual Reports,” http://www.withum.com/fileSave\Commerce_Kirk_0207.pdf (accessed April 11, 2009).

Presenting Information Effectively in Reports

The advice about style in Chapter 7 also applies to reports, with three exceptions:

1. Use a fairly formal style, without contractions or slang.

2. Avoid the word you. In a document with multiple audiences, it will not be clear who you is. Instead, use the company name.

Page 6033. Include in the report all the definitions and documents needed to understand the recommendations. The multiple audiences for reports include readers who may consult the document months or years from now; they will not share your special knowledge. Explain acronyms and abbreviations the first time they appear. Explain as much of the history or background of the problem as necessary. Add as appendixes previous documents on which you are building.

The following points apply to any kind of writing, but they are particularly important in reports:

1. Use clear, engaging writing.

2. Keep repetition to a minimum.

3. Introduce sources and visuals.

4. Use forecasting, transitions, topic sentences, and headings to make your organization clear to your reader.

Let’s look at each of these principles as they apply to reports.

1. Use Clear, Engaging Writing.

Most people want to be able to read a report quickly while still absorbing its important points. You can help them do this by using accurate diction. Not-quite-right word choices are particularly damaging in reports, which may be skimmed by readers who know very little about the subject. Occasionally you can simply substitute a word:

Incorrect:	With these recommendations, we can overcome the solutions to our problem.
Correct:	With these recommendations, we can overcome our problem.
Also correct:	With these recommendations, we can solve our problem.

Sometimes you’ll need to completely recast the sentence.

Incorrect:	The first problem with the incentive program is that middle managers do not use good interpersonal skills in implementing it. For example, the hotel chef openly ridicules the program. As a result, the kitchen staff fear being mocked if they participate in the program.
Better:	The first problem with the incentive program is that some middle managers undercut it. For example, the hotel chef openly ridicules the program. As a result, the kitchen staff fear being mocked if they participate in the program.

A strong writing style is especially important when you are preparing a report that relies on a wealth of statistics. Most people have difficulty absorbing number after number. To help your readers, use text to highlight the message you want the statistics to convey. Examples and action-oriented details keep the reader engaged. An example that has this level of clarity is the 2004 report of the US government’s commission investigating the terrorist attacks of September 11, 2001. The report was praised for its clear narrative, sense of drama, rich detail, and precise language. The commission’s executive director, Philip D. Zelikow, said the report was intentionally made readable because the commission’s leadership wanted people to read and act on it.28

2. Keep Repetition to a Minimum.

Some repetition in reports is legitimate. The conclusion restates points made in the body of the report; the recommendations appear in the transmittal, the abstract or executive summary, and in the recommendations sections of the report. However, repetitive references to earlier material (“As we have already seen”) may indicate that the document needs to be reorganized. Read the document through at a single sitting to make sure that any repetition serves a useful purpose.

Who Did What?

The passive verbs and impersonal constructions in US reports of coal mine disasters (“coal dust was permitted to accumulate” and “an accident occurred”) suggest that accidents are inevitable. Who permitted the coal dust to accumulate? What could have been done to prevent the accumulation? Mine disaster reports contain sentences like the following: “The . . . fatality occurred when the victim proceeded into an area . . . before the roof was supported.” Why did the man who was killed go into the area? Had a supervisor checked to see that the roof was supported? Who ordered what?

British reports of mine disasters, in contrast, focus on people and what they did to limit the damage from the disaster. Perhaps as a result, British mines have a much lower incidence of disasters than do US coal mines.

Adapted from Beverly A. Sauer, “Sense and Sensibility in Technical Documentation: How Feminist Interpretation Strategies Can Save Lives in the Nation’s Mines,” Journal of Business and Technical Communication 7 (January 1993): 63–83.

Legal Liability and Report Drafts

During civil litigation (such as a tort case charging that a product has injured a user), rough drafts may be important to establish the state of mind and intent of a document’s drafters.

To protect the company, one lawyer recommends labeling all but the final draft “Preliminary Draft: Subject to Change.” That way, if there’s ever a lawsuit, the company will be able to argue that only the final report, not the drafts, should be used as evidence.

Adapted from Elizabeth McCord, “‘But What You Really Meant Was . . . Multiple Drafts and Legal Liability,” paper presented at the Association for Business Communication Midwest Regional Conference, Akron, OH, April 3–5, 1991.

3. Introduce Sources and Visuals.

The first time you cite an author’s work, use his or her full name as it appears on the work: “Thomas L. Friedman points out. . . . ” In subsequent citations, use only the last name: “Friedman shows. . . . ” Use active rather than passive verbs.

The verb you use indicates your attitude toward the source. Says and writes are neutral. Points out, shows, suggests, discovers, and notes suggest that you agree with the source. Words such as claims, argues, contends, believes, and alleges distance you from the source. At a minimum, they suggest that you know that not everyone agrees with the source; they are also appropriate to report the views of someone with whom you disagree.

The report text should refer to all visuals:

As Table 1 shows, . . .

See Figure 4.

4. Use Forecasting, Transitions, Topic Sentences, and Headings.

Forecasts are overviews that tell the reader what you will discuss in a section or in the entire report. Make your forecast easy to read by telling the reader how many points there are and using bullets or numbers (either words or figures). In the following example, the first sentence in the revised paragraph tells the reader to look for four points; the numbers separate the four points clearly. This overview paragraph also makes a contract with readers, who now expect to read about tax benefits first and employee benefits last.

Paragraph without numbers:

Employee stock ownership programs (ESOPs) have several advantages. They provide tax benefits for the company. ESOPs also create tax benefits for employees and for lenders. They provide a defense against takeovers. In some organizations, productivity increases because workers now have a financial stake in the company’s profits. ESOPs are an attractive employee benefit and help the company hire and retain good employees.

Revised paragraph with numbers:

Employee stock ownership programs (ESOPs) provide four benefits. First, ESOPs provide tax benefits for the company, its employees, and lenders to the plan. Second, ESOPs help create a defense against takeovers. Third, ESOPs may increase productivity by giving workers a financial stake in the company’s profits. Fourth, as an attractive employee benefit, ESOPs help the company hire and retain good employees.

Transitions are words, phrases, or sentences that tell readers whether the discussion is continuing on the same point or shifting points.

Page 605There are economic advantages, too.

(Tells the reader that we are still discussing advantages but that we have now moved to economic advantages.)

An alternative to this plan is . . .

(Tells reader that a second option follows.)

The second factor . . .

(Tells reader that the discussion of the first factor is finished.)

These advantages, however, are found only in A, not in B or C.

(Prepares reader for a shift from A to B and C.)

A topic sentence introduces or summarizes the main idea of a paragraph. Readers who skim reports can follow your ideas more easily if each paragraph begins with a topic sentence.

Hard to read (no topic sentence):	Another main use of ice is to keep the fish fresh. Each of the seven kinds of fish served at the restaurant requires one gallon twice a day, for a total of 14 gallons. An additional 6 gallons a day are required for the salad bar.
Better (begins with topic sentence):	Twenty gallons of ice a day are needed to keep food fresh. Of this, the biggest portion (14 gallons) is used to keep the fish fresh. Each of the seven kinds of fish served at the restaurant requires one gallon twice a day. An additional 6 gallons a day are required for the salad bar.

Headings (see Chapter 8, p. 224) are single words, short phrases, or complete sentences that indicate the topic in each section. A heading must cover all of the material under it until the next heading. For example, Cost of Tuition cannot include the cost of books or of room and board; College Costs could include all costs. You can have just one paragraph under a heading or several pages. If you do have several pages between headings you may want to consider using subheadings. Use subheadings only when you have two or more divisions within a main heading.

Topic headings focus on the structure of the report. As you can see from the following example, topic headings give very little information.

Talking heads, in contrast, tell the reader what to expect. Talking heads, like those in the examples in this chapter, provide an overview of each section and of the entire report.

Page 606

Headings must be parallel (p. 197); that is, they must use the same grammatical structure. Subheads must be parallel to each other but do not necessarily have to be parallel to subheads under other headings.

Not parallel:	Are Students Aware of VIP?    Current Awareness among Undergraduate Students    Graduate Students Ways to Increase Volunteer Commitment and Motivation    We Must Improve Training and Supervision    Can We Make Volunteers’ Hours More Flexible?    Providing Emotional Support to Volunteers    Provide More Information about Community Needs and VIP Services
Parallel:	Campus Awareness of VIP    Current Awareness among Undergraduate Students    Current Awareness among Graduate Students Ways to Increase Volunteer Commitment and Motivation    Improving Training and Supervision    Improving the Flexibility of Volunteers’ Hours    Providing Emotional Support to Volunteers    Providing More Information about Community Needs and VIP Services

In a very complicated report, you may need up to three levels of headings. Figure 19.5 illustrates one way to set up headings. Follow these standard conventions for headings:

   Although the figure shows only one example of each level of headings, in an actual report you would not use a subheading unless you had at least two subsections under the next higher heading.

   Whatever the format for headings, avoid having a subhead come immediately after a heading. Instead, some text should follow the main heading before the subheading. (If you have nothing else to say, give an overview of the division.)

   Avoid having a heading or subheading all by itself at the bottom of the page. Instead, have at least one line (preferably two) of type. If there isn’t room for a line of type under it, put the heading on the next page.

   Don’t use a heading as the antecedent for a pronoun. Instead, repeat the noun.

Page 607Figure 19.5 Setting Up Headings in a Single-Spaced Document

Writing Formal Reports

Formal reports are distinguished from informal letter and memo reports by their length and by their components. A full formal report may contain the following components (see Figures 19.6 and 19.7):

Cover

Title Page

Letter or Memo of Transmittal

Table of Contents

List of Illustrations

Executive Summary

Report Body

Introduction (Orients the reader to the report. Usually has subheadings for Purpose and Scope; depending on the situation, may also have Limitations, Assumptions, Methods, Criteria, and Definitions.)

Background or History of the Problem (Orients the reader to the topic of the report. Serves as a record for later readers of the report.)

Body (Presents and interprets data in words and visuals. Analyzes causes of the problem and evaluates possible solutions. Specific headings will depend on the topic of the report.)

Conclusions (Summarizes main points of report.)

Recommendations (Recommends actions to solve the problem. May be combined with Conclusions; may be put at beginning of body rather than at the end.)

Notes, References, or Works Cited (Documents sources cited in the report.)

Appendixes (Provides additional materials that the careful reader may want: transcripts of interviews, copies of questionnaires, tallies of all the questions, complex tables, computer printouts, previous reports.)

As Figure 19.6 shows, not every formal report necessarily has all these components. In addition, some organizations call for additional components or arrange these components in a different order. As you read each section below, you may want to turn to the corresponding pages of the long report in Figure 19.7 to see how the component is set up and how it relates to the total report.

Figure 19.6 The Components in a Report Can Vary

http://www.pewinternet.org/

To see examples of the ways in which reports are written and disseminated, visit the Pew Internet & American Life Project at the above Web site.

The project produces reports on the impact of the Internet on American lives, collecting and analyzing data on real-world developments as they intersect with the virtual world. Following data collection, the results are written into the reports and posted as PDFs to the Web site.

Visit the Project’s Web pages to see examples of the ways in which reports are first presented and then rewritten by the press for their audience and purpose.

Title Page

The title page of a report usually contains four items: the title of the report, the person or organization for whom the report is prepared, the person or group who prepared the report, and the release date. Some title pages also contain a brief summary or abstract of the contents of the report; some title pages contain decorative artwork.

The title of the report should be as informative as possible. Like subject lines, report titles are straightforward.

Poor title:	New Plant Site
Better title:	Eugene, Oregon, Site for the New Kemco Plant

Large organizations that issue many reports may use two-part titles to make it easier to search for reports electronically. For example, US government report titles first give the agency sponsoring the report, then the title of that particular report.

Small Business Administration: Management Practices Have Improved for the Women’s Business Center Program

In many cases, the title will state the recommendation in the report: “Why the United Nations Should Establish a Seed Bank.” However, the title should omit recommendations when

   The reader will find the recommendations hard to accept.

   Putting all the recommendations in the title would make it too long.

   The report does not offer recommendations.

If the title does not contain the recommendation, it normally indicates what problem the report tries to solve or the topic the report discusses.

Eliminate any unnecessary words:

Wordy:	Report of a Study on Ways to Market Life Insurance to Urban Professional People Who Are in Their Mid-40s
Better:	Marketing Life Insurance to the Mid-40s Urban Professional

The identification of the receiver of the report normally includes the name of the person who will make a decision based on the report, his or her job title, the organization’s name, and its location (city, state, and zip code). Government reports often omit the person’s name and simply give the organization that authorized the report.

If the report is prepared primarily by one person, the Prepared by section will have that person’s name, his or her title, the organization, and its location (city, state, and zip code). In internal reports, the organization and location are usually omitted if the report writer works at the headquarters office.

If several people write the report, government reports normally list all their names, using a separate sheet of paper if the group working on the report is large. Practices in business differ. In some organizations, all the names are listed; in others, the division to which they belong is listed; in still others, the name of the chair of the group appears.

The release date, the date the report will be released to the public, is usually the date the report is scheduled for discussion by the decision makers. The report is frequently due four to six weeks before the release date so that the decision makers can review the report before the meeting.

If you have the facilities and the time, try using type variations, color, and artwork to create a visually attractive and impressive title page. However, a plain typed page is acceptable. The format in Figure 19.7 will enable you to create an acceptable typed title page.

Report Your Way to a Better Job

Joan was hired by a computer company to find references to the computer industry in current publications. To expand her job description, Joan wrote reports summarizing the data instead of just sending files of clippings. The receivers were delighted because she was saving them time.

Her second step was to meet with the people who got her reports to ask them what sorts of information they needed. Now she was able to target her reports to her readers’ needs. People in each unit began to invite her to meetings discussing the projects she was researching.

As a member of the various groups within the company, Joan now had the information she needed to take a third step: drafting the report for decision makers. For example, if the sales department wanted information for a proposal to a client, she presented her information in a sales proposal. If the president wanted material for a speech, she arranged her information in a speech outline.

When the director of business communications resigned, Joan was the obvious choice for the job.

Adapted from Janice LaRouche, “I’m Stuck in a Dead-End Job,” Family Circle, March 24, 1987, 121.

Letter or Memo of Transmittal

Use a letter of transmittal if you are not a regular employee of the organization for which you prepare the report; use a memo if you are a regular employee.

Page 623The transmittal has several purposes: to transmit the report, to orient the reader to the report, and to build a good image of the report and of the writer. An informal writing style is appropriate for a transmittal even when the style in the report is more formal. A professional transmittal helps you create a good image of yourself and enhances your credibility. Personal statements are appropriate in the transmittal, even though they would not be acceptable in the report itself.

Organize the transmittal in this way:

1. Transmit the report.  Tell when and by whom it was authorized and the purpose it was to fulfill.

2. Summarize your conclusions and recommendations.  If the recommendations will be easy for the reader to accept, put them early in the transmittal. If they will be difficult, summarize the findings and conclusions before the recommendations.

3. Mention any points of special interest in the report. Show how you surmounted minor problems you encountered in your investigation. Thank people who helped you.  These optional items can build goodwill and enhance your credibility.

4. Point out additional research that is necessary, if any.  Sometimes your recommendation cannot be implemented until further work is done. If you’d be interested in doing that research, or if you’d like to implement the recommendations, say so.

5. Thank the reader for the opportunity to do the work and offer to answer questions.  Provide contact information. Even if the report has not been fun to do, expressing satisfaction in doing the project is expected. Saying that you’ll answer questions about the report is a way of saying that you won’t charge the reader your normal hourly fee to answer questions (one more reason to make the report clear!).

The letter of transmittal on page i of Figure 19.7 uses this pattern of organization.

Executive Summary of a Government Plan

On February 18, 2009, the Obama administration announced a “Homeowner Affordability and Stability” plan to counter the home mortgage crisis. The executive summary of the plan—given to the press—included the following:

   First, a statement of background, which included bullet points listing the effects of the crisis (for example, that nearly 6 million households will face foreclosure), and ending with the purpose of the plan (that the plan will help nearly 7 to 9 million families to “restructure” their mortgages to avoid foreclosure).

   Then, the two main components of the plan (“affordability” and “stability”) together with their subcomponents (a few subcomponents are given below as examples):

   “Affordability”

   “Enabling refinancing”

   “Reducing monthly payments”

   “Stability”

   “Helping homeowners stay in their homes”

   “Not aiding speculators”

   “Protecting neighborhoods”

The summary provided numbers and, where appropriate, examples to inform and explain the plan. A busy reader—or one who wanted to know the broad contours of the plan without going through its nuts and bolts— would likely benefit from reading the summary before deciding whether to read the whole plan.

Adapted from “Homeowner Affordability and Stability Plan Executive Summary,” in BusinessWeek: Top News: February 18, 2009, http://www.businessweek.com/bwdaily/dnflash/content/feb2009/db20090218_403370.htm (accessed April 12, 2009).

Table of Contents

In the table of contents, list the headings exactly as they appear in the body of the report. If the report is less than 25 pages, you’ll probably list all the levels of headings. In a very long report, pick a level and put all the headings at that level and above in the table of contents.

Page ii of Figure 19.7 shows the table of contents.

List of Illustrations

A list of illustrations enables readers to refer to your visuals.

Report visuals comprise both tables and figures. Tables are words or numbers arranged in rows and columns. Figures are everything else: bar graphs, pie charts, flow charts, maps, drawings, photographs, computer printouts, and so on. Tables and figures may be numbered independently, so you may have both a Table 1 and a Figure 1. In a report with maps and graphs but no other visuals, the visuals are sometimes called Map 1 and Graph 1. Whatever you call the illustrations, list them in the order in which they appear in the report; give the name of each visual as well as its number.

See Chapter 9 for information about how to design and label visuals.

Executive Summary

An executive summary or abstract tells the reader what the document is about. It summarizes the recommendation of the report and the reasons for the recommendation or describes the topics the report discusses and indicates the depth of the discussion. It should be clear even to people who will read only the abstract.

A good abstract is easy to read, concise, and clear. Edit your abstract carefully to tighten your writing and eliminate any unnecessary words.

Wordy:	The report describes two types of business jargon, businessese and reverse gobbledygook. It gives many examples of each of these and points out how their use can be harmful.
Tight:	The report describes and illustrates two harmful types of business jargon, businessese and reverse gobbledygook.

Abstracts generally use a more formal style than other forms of business writing. Avoid contractions and colloquialisms. Try to avoid using the second-person you. Because reports may have many different readers, you may become inaccurate. It’s OK to use exactly the same words in the abstract and the report.

Summary abstracts present the logic skeleton of the report: the thesis or recommendation and its proof. Use a summary abstract to give the most useful information in the shortest space.

To market life insurance to mid-40s urban professionals, Interstate Fidelity Insurance should advertise in upscale publications and use direct mail.

Network TV and radio are not cost-efficient for reaching this market. This group comprises a small percentage of the prime-time network TV audience and a minority of most radio station listeners. They tend to discard newspapers and general-interest magazines quickly, but many of them keep upscale periodicals for months or years. Magazines with high percentages of readers in this group include Architectural Digest, Bon Appetit, BusinessWeek, Forbes, Golf Digest, Metropolitan Home, Southern Living, and Smithsonian.

Any advertising campaign needs to overcome this group’s feeling that they already have the insurance they need. One way to do this would be to encourage them to check the coverage their employers provide and to calculate the cost of their children’s expenses through college graduation. Insurance plans that provide savings and tax benefits as well as death benefits might also be appealing.

One way to start composing an abstract is to write a sentence outline. A sentence outline not only uses complete sentences rather than words or phrases but also contains the thesis sentence or recommendation and the evidence that proves that point. Combine the sentences into paragraphs, adding transitions if necessary, and you’ll have your abstract.

Descriptive abstracts indicate what topics the report covers and how deeply it goes into each topic, but they do not summarize what the report says about each topic. Phrases that describe the report (“this report covers,” “it includes,” “it summarizes,” “it concludes”) are marks of a descriptive abstract. An additional mark of a descriptive abstract is that the reader can’t tell what the report says about the topics it covers.

This report recommends ways Interstate Fidelity Insurance could market insurance to mid-40s urban professionals. It examines demographic and psychographic profiles of the target market. Survey results are used to show attitudes toward insurance. The report suggests some appeals that might be successful with this market.

Page 625Introduction

The Introduction of the report always contains a statement of purpose and scope and may include all the parts in the following list.

   Purpose. The purpose statement (p. 531) identifies the problem the report addresses, the technical investigations it summarizes, and the rhetorical purpose (to explain, to recommend).

   Scope. The scope statement identifies how broad an area the report surveys. For example, Company XYZ is losing money on its line of computers. Does the report investigate the quality of the computers? The advertising campaign? The cost of manufacturing? The demand for computers? A scope statement allows the reader to evaluate the report on appropriate grounds.

   Assumptions. Assumptions in a report are like assumptions in geometry: statements whose truth you assume, and which you use to prove your final point. If they are wrong, the conclusion will be wrong too.

For example, to plan cars that will be built five years from now, an automobile manufacturer commissions a report on young adults’ attitudes toward cars. The recommendations would be based on assumptions both about gas prices and about the economy. If gas prices radically rose or fell, the kinds of cars young adults wanted would change. If there were a major recession, people wouldn’t be able to buy new cars.

Almost all reports require assumptions. A good report spells out its assumptions so that readers can make decisions more confidently.

   Methods. If you conducted surveys, focus groups, or interviews, you need to tell how you chose your subjects, and how, when, and where they were interviewed. If the discussion of your methodology is more than a paragraph or two, you should probably make it a separate section in the body of the report rather than including it in the introduction. Reports based on scientific experiments usually put the methods section in the body of the report, not in the Introduction.

If your report is based solely on library or online research, provide a brief description of significant sources. See Chapter 17 on how to cite and document sources.

   Limitations. Limitations make your recommendations less valid or valid only under certain conditions. Limitations usually arise because time or money constraints haven’t permitted full research. For example, a campus pizza restaurant considering expanding its menu may ask for a report but not have enough money to take a random sample of students and towns-people. Without a random sample, the writer cannot generalize from the sample to the larger population.

Many recommendations are valid only for a limited time. For instance, a campus store wants to know what kinds of clothing will appeal to college men. The recommendations will remain in force only for a short time: Three years from now, styles and tastes may have changed, and the clothes that would sell best now may no longer be in demand.

   Criteria. The criteria section outlines the factors or standards that you are considering and the relative importance of each. If a company is choosing a city for a new office, is the cost of office space more or less important than the availability of skilled workers? Check with your audience before you write the draft to make sure that your criteria match those of your readers.

   Definitions. Many reports define key terms in the introduction. For instance, a report on unauthorized Internet use by employees might define what is meant by “unauthorized use.” A report on the corporate dress code might define such codes broadly to include general appearance, so it could include items such as tattoos, facial piercings, and general cleanliness. Also, if you know that some members of your primary, secondary, or intermediate audience will not understand technical terms, define them. If you have only a few definitions, you can put them in the Introduction. If you have many terms to define, put a glossary in an appendix. Refer to it in the Introduction so that readers know that you’ve provided it.

Analyzing Numbers,

“West Concord, MA, has . . . one of the highest [per capita incomes] in the nation. . . . It also has one of the highest number of single men in Massachusetts. Why? On the outskirts of West Concord is a medium-to-maximum security prison!

So, when one naively juxtaposes these data points, one can be led to assume that there are plenty of single, wealthy men there—when that isn’t the case. . . . Think before arriving to conclusions indicated by data crunching.”

Quoted from Thomas M. Bodenberg, Letter to the Editor, American Demographics, August 2001, 8.

Page 626 Life and Death Data

“The ‘value of a statistical life’ is $6.9 million in today’s dollars, the Environmental Protection Agency reckoned in May—a drop of nearly $1 million from just five years ago. . . .

“The devaluation has real consequences. When drawing up regulations, government agencies put a value on human life and then weigh the costs versus the lifesaving benefits of a proposed rule.

“Consider, for example, a hypothetical regulation that costs $18 billion to enforce but will prevent 2,500 deaths. At $7.8 million per person (the old figure), the lifesaving benefits outweigh the costs. But at $6.9 million per person, the rule costs more than the lives it saves, so it may not be adopted. . . .

“The EPA figure is not based on people’s earning capacity, or potential contributions to society, or how much they are loved and needed—factors used in wrongful-death lawsuits.

“Instead, economists calculate the value based on what people are willing to pay to avoid certain risks, and on how much extra employers pay their workers to take on additional risks. Most of the data is drawn from payroll statistics; some comes from opinion surveys.”

Quoted from Seth Borenstein, “Life Worth Less Now than in 2003, EPA Officials Say,” Associated Press, July 11, 2008. Reprinted with permission of The YGS Group.

Background or History

Formal reports usually have a section that gives the background of the situation or the history of the problem. Even though the current audience for the report probably knows the situation, reports are filed and consulted years later. These later audiences will probably not know the background, although it may be crucial for understanding the options that are possible.

In some cases, the history section may cover many years. For example, a report recommending that a US hotel chain open hotels in Romania may give the history of that country for at least several decades. In other cases, the background section is much briefer, covering only a few years or even just the immediate situation.

The purpose of most reports is rarely to provide a history of the problem. Do not let the background section achieve undue length.

Body

The body of the report is usually its longest section. Here you analyze causes of the problem and offer possible solutions. Here you present your argument with all its evidence and data. Data that are necessary to follow the argument are included with appropriate visuals and explanatory text. Extended data sets, such as large tables and long questionnaires, are generally placed in appendices. It is particularly important in the body that you use headings, forecasting statements, and topic sentences to help lead your readers through the text. Readers will also appreciate clear, concise, and engaging prose. Remember to cite your sources (see Chapter 17) and to refer in the text to all visuals and appendices.

Conclusions and Recommendations

Conclusions summarize points you have made in the body of the report; Recommendations are action items that would solve or ameliorate the problem. These sections are often combined if they are short: Conclusions and Recommendations. No new information should be included in this section.

Many readers turn to the recommendations section first; some organizations ask that recommendations be presented early in the report. Number the recommendations to make it easy for people to discuss them. If the recommendations will seem difficult or controversial, give a brief paragraph of rationale after each recommendation. If they’ll be easy for the audience to accept, you can simply list them without comments or reasons. The recommendations will also be in the executive summary and perhaps in the title and the transmittal.

Summary of Key Points

   Good reports begin with good data. Make sure your data come from reliable sources.

   Analyze report numbers and text for accuracy and logic.

   Choose an appropriate organizational pattern for your information and purposes. The most common patterns are comparison/contrast, problem-solving, elimination of alternatives, SWOT analysis, general to particular, particular to general, geographic or spatial, functional, and chronological.

   Reports use the same style as other business documents, with three exceptions:

1. Reports use a more formal style, without contractions or slang, than do many letters and memos.

2. Reports rarely use the word you.

3. Reports should include all the definitions and documents needed to understand the recommendations.

   To create good report style,

1. Use clear, engaging writing.

2. Keep repetition to a minimum.

3. Introduce all sources and visuals.

4. Use forecasting, transitions, topic sentences, and headings.

   Headings are single words short phrases, or complete sentences that describe all of the material under them until the next heading. Talking heads tell the reader what to expect in each section.

   Headings must use the same grammatical structure. Subheads under a heading must be parallel to each other but do not necessarily have to be parallel to subheads under other headings.

   The title page of a report usually contains four items: the title of the report, whom the report is prepared for, whom it is prepared by, and the date.

   If the report is 25 pages or less, list all the headings in the table of contents. In a long report, pick a level and put all the headings at that level and above in the contents.

   Organize the transmittal in this way:

1. Release the report.

2. Summarize your conclusions and recommendations.

3. Mention any points of special interest in the report. Show how you surmounted minor problems you encountered in your investigation. Thank people who helped you.

4. Point out additional research that is necessary, if any.

5. Thank the reader for the opportunity to do the work and offer to answer questions.

   Summary abstracts present the logic skeleton of the article: the thesis or recommendation and its proof. Descriptive abstracts indicate what topics the article covers and how deeply it goes into each topic, but do not summarize what the article says about each topic.

   A good abstract or executive summary is easy to read, concise, and clear. A good abstract can be understood by itself, without the report or references.

   The Introduction of the report always contains a statement of purpose and scope. The Purpose statement identifies the organizational problem the report addresses, the technical investigations it summarizes, and the rhetorical purpose (to explain, to recommend). The Scope statement identifies how broad an area the report surveys. The introduction may also include Limitations, problems or factors that limit the validity of your recommendations; Assumptions, statements whose truth you assume, and which you use to prove your final point; Methods, an explanation of how you gathered your data; Criteria used to weigh the factors in the decision; and Definitions of terms readers may not know.

   A Background or History section is usually included because reports are filed and may be consulted years later by people who no longer remember the original circumstances.

   The Body of the report, usually the longest section, analyzes causes of the problem and offers possible solutions. It presents your argument with all evidence and data.

   Conclusions summarize points made in the body of the report; Recommendations are action items that would solve or ameliorate the problem. These sections are often combined if they are short.

Analyzing Numbers

“True story. One of the Big Three Detroit Auto-makers put together a customer relationship management (CRM) system that helped it decide which cars to manufacture based on what was going on in dealers’ lots. It worked great.

Well, except for one catch. According to Eric Almquist, VP at Mercer Management Consulting, the company’s marketing team had just created sales incentives to get rid of a lot of lime-green cars, which no one wanted. As consumers snapped up the special deals on the cars, the CRM software noticed the surge of sales in lime-green cars and instructed the factory to produce more. The automaker lost millions of dollars before it caught the error.”

Quoted from Brian Caulfield, “Facing Up to CRM,” Business 2.0, August/September 2001, 149.

Page 628C H A P T E R 19 Exercises and Problems

19.1 Reviewing the Chapter

1. What are some criteria to check to ensure you have quality data? (LO 1)

2. What kinds of patterns should you look for in your data and text? (LO 1)

3. What are some guidelines for choosing information for reports? (LO 2)

4. Name seven basic patterns for organizing reports. For four of them, explain when they would be particularly effective or ineffective. (LO 3)

5. What are three ways that style in reports differs from conventional business communication style? (LO 4)

6. Name four good writing principles that are particularly important in reports. (LO 4)

7. How do you introduce sources in the text of the report? (LO 4)

8. Why should reports try to have a topic sentence at the beginning of each paragraph? (LO 4)

9. What are the characteristics of an effective report title? (LO 5)

10. What goes in the letter of transmittal? (LO 5)

11. What is the difference between summary and descriptive abstracts? (LO 5)

12. What goes in the introduction of a report? (LO 5)

13. What is the difference between conclusions and recommendations? (LO 5)

19.2 Identifying Assumptions and Limitations

Indicate whether each of the following would be an assumption or a limitation in a formal report.

a. Report on Ways to Encourage More Students to Join XYZ Organization

1. I surveyed a judgment sample rather than a random sample.

2. These recommendations are based on the attitudes of current students. Presumably, students in the next several years will have the same attitudes and interests.

b. Report on the Feasibility of Building Hilton Hotels in Romania

1. This report is based on the expectation that the country will be politically stable.

2. All of my information is based on library research. The most recent articles were published two months ago; much of the information was published a year ago or more. Therefore some of my information may be out of date.

c. Report on Car-Buying Preferences of Young Adults

1. These recommendations may change if the cost of gasoline increases dramatically or if there is another deep recession.

2. This report is based on a survey of adults ages 20 to 24 in California, Texas, Illinois, Ontario, and Massachusetts.

3. These preferences are based on the cars now available. If a major technical or styling innovation occurs, preferences may change.

Page 62919.3 Revising an Executive Summary

The following Executive Summary is poorly organized and too long. Rearrange information to make it more effective. Cut information that does not belong in the summary. You may use different words as you revise.

In this report I will discuss the communication problems which exist at Rolling Meadows Golf Club. The problems discussed will deal with channels of communication. The areas which are causing problems are internal. Radios would solve these internal problems.

Taking a 15-minute drive on a golf cart in order to find the superintendent is a common occurrence. Starters and rangers need to keep in touch with the clubhouse to maintain a smooth flow of players around the course. The rangers have expressed an interest in being able to call the clubhouse for advice and support.

Purchasing two-channel FM radios with private channels would provide three advantages. First, radios would make the golf course safer by providing a means of notifying someone in the event of an emergency. Second, radios would make the staff more efficient by providing a faster channel of communication. Third, radios would enable clubhouse personnel to keep in touch with the superintendent, the rangers, and the starters.

During the week, radios can be carried by the superintendent, the golf pro, and another course worker. On weekends and during tournaments, one radio will be used by the golf professional. The other two will be used by one starter and one ranger. Three radios is the minimum needed to meet basic communication needs. A fourth radio would provide more flexibility for busy weekends and during tournaments.

Tekk T-20 radios can be purchased from Page-Com for $129 each. These radios have the range and options needed for use on the golf course. Radios are durable and easy to service. It is possible that another brand might be even less expensive.

Rolling Meadows Golf Club should purchase four radios. They will cost under $600 and can be paid for from the current equipment budget.

19.4 Analyzing a Report Introduction

The following paragraphs form the introduction in Ford Motor Company’s 2007–2008 sustainability report (accessible at http://www.ford.com/doc/sr07-ford-sustainability.pdf). The “I” in the first sentence belongs to Alan Mulally, the President and CEO of the company. Analyze this introduction based on the discussion of report introductions given in the chapter. For example, where in the three paragraphs do you see the report’s purpose, scope, assumptions, and so forth? How can you improve this introduction? Discuss in small groups.

I am convinced that our vision makes sense from a business point of view as well as an ethical one. Climate change may be the first sustainability issue to fundamentally reshape our business, but it will not be the last. How we anticipate and respond to issues like human rights, the mobility divide, resource scarcity and poverty will determine our future success.

For example, urbanization, congestion, high fuel prices and other trends are putting safe, affordable transportation out of reach for many people around the world. We view this as an enormous opportunity and are leading the implementation of a prototype program to provide smart, innovative urban mobility solutions.

Our progress in addressing climate change, mobility and our other material sustainability issues is summarized below. I believe that our approach to sustainability will be one of the most important factors in both our short-term financial recovery and our long-term success. I hope that what you read in this report demonstrates that we are on the right track.

19.5 Comparing Report Formats

Locate five business or organizational reports (or white papers as they’re sometimes called) on the Internet. A good online collection of organizational reports is the Web site of the Council on Library and Information Resources (CLIR) accessible at http://www.clir.org/pubs/reports/reports.html. Additionally, you can find reports linked from the Web sites of the Fortune 500 organizations, or you can search for them on Google using keywords such as “reports,” “business reports,” “company reports,” or “organizational reports.”

The reports you find could be about the organizations’ environmental sustainability efforts, their products, or any other aspect of their operations.

Compare the organization (the reports’ contents or the way they’re structured) of the five reports you select. What similarities and differences do you see in the formatting of all these reports? Make a table of your findings. Discuss your findings in small groups.

19.6 Comparing Style in Annual Reports

Locate two annual reports on the Internet. A good source is Report Watch, http://www.reportwatch.net/ Compare the style of the two reports. Here are some questions to get you started:

1. How do they use visuals to keep attention?

2. What differences do you see in the letters from the CEOs?

3. How do they present number-heavy information? Do they rely mainly on tables and graphs? Do they give prose summaries?

4. Is the writing easy to understand?

5. Do you see places where negative information is given a positive spin?

6. Is one report easier to understand than the other? Why?

7. Is one report more interesting than the other? Why?

8. Is one report more convincing than the other? Why?

As your instructor directs,

a. Work in small groups to do your comparison. Share your findings in a five-minute oral presentation to the class.

b. Work in small groups to do your comparison. Share your findings in a memo posted on the class Web site.

c. Work individually to do your comparison. Share your findings in a memo to your instructor.