The Book

Edition 1992, 1995

The Link http://books.google.com.eg/books

Other Books 1. How to Write a Successful Report.2. The minutes: A Guide for Company Secretaries & Managers

Before we start

“Reading and writing, are the two faces of the knowledge and expression coin”Rabindranath Tagore

ProcessingThinkingJudging

ConsultingLinking

SummarizingMemorizing

Three types of writing styles

Factual / Informative

Where only facts are mentioned.

Very good for: news

Example:

On Friday 24th, Mexico said oil output fell 11.1% to 2.52 million barrel/day in June, compared with the same month a year ago with production below 2.6 million barrel/day for the first time since 1990.

Explanatory / Commentary

Where facts are mentioned with explanation.

Very good for: books, economics.

Example:

Copper led the advance for base metals, hitting the ceiling of US$ 5,645 per ton before easing back to US$ 5,595, up 1.3% in spite of a rise of 3,475 tons in London Metal Exchange stocks.

Leading / Subjective

Where the goal is to establish an opinion.

Very good for: brochures, advertizing.

Example:

Sugar prices continued their strong run with heavy expectation that India’s government was about to extend permission for duty free imports of raw sugar beyond July.

Source: Financial Times.com

The best writing style for a credit report is where the three styles combine in one sentence

Example (1)

Company XYZ 2007 2008

Sales 10.000 12.000

Comment

Sales rose by 2.000 (+20%) units between the two periods under analysis. This increase is mainly due to capacity expansion rather than prices increases. It is worthy mentioning that consumers prices for such product recorded only 11.5% inflation.

Example (2)

Company XYZ 2007 2008

Current R 1.1:1 1.2:1

Comment

Current Ratio slightly increased by 0.1 points in 2008 due to the increasing volumes of inventory. The company’s overstocking, by its turn, is due to the currency devaluation leading to cut down in its imports bill.

Example (3)

Company XYZ 2007 2008

C/Assets 1.500 1.750

Comment

Current Assets rose by 0.250 units of currency, translated to 16.67% in 2008 over 2007. However, the composition of its items maintained consistency. Following is the break-up:

2007%2008%

Cash1006.71176.7

A/R50033.358333.3

Inv.90060.0105060.0

Total1500100.01750100.0

T i p s

1. Use short sentences, always begin with the fact, followed by your comment.

2. Avoid, as much as possible, establishing an opinion.

3. Target the subject directly and shortly.

4. Avoid repetitions in words, figures, and use of adjectives.

6. Do not think as a “writer”, put yourself in the “reader’s” seat.

When doubting, ask someone else to read what you wrote and let him explain it to you.

7. Use illustrations, tables, and/or photos whenever possible.

Tables proved to be 40% clearer in determining facts rather than texts.

8. Avoid the extreme use of fancy borders, colorful tags, and special fonts.

9. Instead, use the Bold, Italic, or underlining to draw attention. However, do not over use it.

10. Use proper bullets or numbers and strictly follow its order. The same goes for the indents.

11. Establish consistency in your writing style, font size and type, and topic headers.

5. Avoid the use of “BIG” words i.e. Huge, tremendous, great, … etc.

Instead use “Average” words i.e. acceptable, good, considered, coping with… etc.

1. Identify the readership

How much existing knowledge can be assumed? If the audience has very little knowledge of the topic then the report will need to explain basic principles. If the audience is expert-level in the field then too much explanation will make the report tedious to read.

Is the audience diverse or homogeneous? If the majority of the readership has similar backgrounds and exposure to the topic then the report can be aimed directly at that group. If they have very different backgrounds or widely varying experience of the topic then care must be taken not to inadvertently exclude part of the group.

Are there any aspects of the audience that you must take into account in order to achieve a positive outcome? For example; those operating under financial constraints will appreciate your attention to costs; if the readership is mostly people who will be directly affected by the recommendations then the report should anticipate their concerns.

It is important that the report is pitched at the correct readership. The following reader characteristics should be considered:

2. Steps of Report Preparation

2. Steps of Report Preparation2.1 Identify the purpose of the report:

The report should lead the reader from the facts to the recommendations via a logical path. It is necessary to identify the desired outcome of discussions based on the report before writing begins. A leading report should persuade the reader to make the decisions that the author favours. Those decisions need to be identified in advance.

Examples1) A report aiming to grant a company for the first time should concentrate on the opportunity for the bank to do business or to show interest in activity.2) A report aiming to renew facilities should concentrate on the previous experience and the history with the bank. Also, profitability is an important issue.3) A report aiming to amend terms should concentrate on the lacks in fulfilling the “old” terms and the possible reflection of your recommendation.4) A report aiming to liquidate an account should hold the “exit scenario” and the measures taken before proposing liquidation.

2. Steps of Report Preparation2.2 Assemble the information:

The report is based on facts. Statements of fact should be supported. The report must not expect the reader to take things on trust or to accept assumptions. Sources of information must be referenced and recorded in the report. If possible the ‘original’ source should be found even if attached.

Examples1) If your report quotes figures from a government body, visit the body’s website, find those figures and reference them there.2) The investigation report should not be included in the report body. Only if there is something to mention or comment on. The full text can be simply attached.3) The market studies should be referenced as well; even if they come from the bank’s market research department.

2. Steps of Report Preparation2.3 Identify relevant Information:

The report should contain facts and figures related to its subject. Cross matching the information mentioned in the report in its different topics should lead to same facts.In other terms, the whole report should tell the same “story”

Examples1) If your report is about a food trader, market study cannot concern the trade of commodities, even if it is about “wheat”.2) The financial analysis should reflect the activity description and the market and/or economic circumstances. They simply cannot be apart.3) If the report concerns a group of companies, concentration should be made on the group main activity and its liaison with the subject customer. Do not draw the reader’s attention to the sister companies’ activities.

2. Steps of Report Preparation2.4 Examine accuracy:

The facts included in the report should reflect “reliability”. The report does not only show the customer, but it also shows the writer.The writer’s efforts in investigating the case and care for a balanced positioning for the bank and the customer benefits should be obvious.

Examples1) The use of secondary source of data, or out of date supports reflect reluctance in studying and analysing the case.2) The use of “stamp sentences” destroys the report structure, even in similar cases. Remember, God created different people with similarities, and not similar people with differences.3) In case of using the “similarity” that exists in other reports in your report, kindly give extra attention in re-reading or re-writing it before use.

2. Steps of Report Preparation2.5 Evaluate:

Evaluation is an important process. It comes right in the middle of the process of writing a successful report because the balance depends on this phase.In this stage you have to evaluate whether the information gathered, relevant, and checked serve the purpose of your report or they drive it out.

Examples1) This is the last phase where you can get backward in your report writing or even your decision. It is better to declare the lacks in the file rather than ruin your track.2) In case you touch the lacks in your case, it might be recommended to re-tailor your report to excuse the bank from entering in relationship.

3) Evaluation, if it does not have a “negative” impact on the way you regard the case, then it will strengthen your presentation and awareness of the case.

2. Steps of Report Preparation2.6 Sort and group:

Congratulation! Coming to this stage means that you are building a strong case. Remember, you can only sell what you have.Try to reorganize the information you have and set a plan for the use of them in your report.

Examples1) Establish the connections between the related parts of the report. Usually, the report includes technical aspects e.g. the limits structure which should be grouped to the commercial aspects of the activity.2) Concentrate on the purpose meant to be financed e.g. asset finance or cash-flow. If there is a combination proposed, sort the limits structure accordingly.

3) SWOT analysis is a useful tool to sort and group the cons and against you propose the relationship to the management.

2. Steps of Report Preparation2.7 Allocate Headings:

The use of heading is very important as it classifies the topics of presentation. However, it is two sides weapon if the heading chosen does not reflect the subject or leads the reader elsewhere.

Examples1) Use the bank “report form” for better and consistent heading allocation. However, if your report needs different or changed heading do never hesitate to use it as long as it serves your purpose.2) Heading should not contain figures, dates, or any other facts. The disclosure of such items shall be mentioned in the text body.

2. Steps of Report Preparation2.8 Writing:

As previously mentioned, the report writing should reflect the writer as well as the customer. It reflects the level of the writer’s intelligence, literacy, innovation, creativity, organization, presentation, and expression.

Examples1) Do not try to imitate “others” style, simply use your own. However, do not try to draw the reader’s attention to “you” instead of the “case”.2) Use appropriate terms. In credit reports use the practical and professional expressions, not the literature and odd ones.3) Train yourself in following the tips mentioned in the writing style. The more you write or contribute in reports, the more you will gain style, accuracy, and speed.

2. Steps of Report Preparation2.9 Revision:

Take off your suite, and put the reader’s one. Though it is hard to do, but important. While writing, the brain speed is always faster than the hand typing. That’s why you will stop again to correct the spelling mistakes and presentations.But this is not the revision meant. You should revise the core of your report.

Examples1) Try to establish two-parts revision. Check the spelling mistakes that skip from the spelling checkers after you finish typing. But the second part of the revision which concerns the core should be done 24 hours after typing it.2) It is recommended to ask a colleague to read your report and discuss it with him. But do not violate the report confidentiality or specialization.3) In case of working under dead time limits, it is recommended to disclose to your boss –while presenting the report- that you did not finally revise it.

2. Steps of Report Preparation2.10 Fine tuning of semantics:

The expressions used can have different meanings if not opposite ones. Accept whatever comes out from the revision because it is a second eye. Discuss it, but do not close your mind on your standings. Remember that nobody can claim his/her seniority in caring about the bank rights.

Examples1) Fine tuning the expressions and semantics used in the recommendation gives strength and deepness to it.2) Try not to use vague or elastic expressions, simply use “proper” ones.3) Imagine yourself in two situations: - The customer, who will be liable in carrying your terms and conditions, - and the credit administration, which will implement it.

3. Writing the executive summary:

Though the Executive Summary is put in the front page of your report, it is highly recommended that you write it after the report completion.

Reasons

1) It should summarize every part of the report in few and concise words. Giving the first and important impression for the decision maker.

2) It should not exceed one letter-size page (A4). Otherwise, the reader will loose interest with going through too much details reading it.

3) The Executive Summary should hold the “latest” changes and amendments you performed in your report while preparing it.

3. Writing the executive summary:

The Executive Summary should briefly tells the following:

General Information Business name, names of principals, social security number for each principal, and the business address. Purpose of the loan - exactly what the loan will be used for and why it is needed. Amount required - the exact amount you need to achieve your purpose.

Business DescriptionHistory and nature of the business - what kind of business it is, its age, number of employees, and current business assets.

Management Profile Develop a short statement on the business principal, education, experience, skills, and accomplishments.

3. Continued: Writing the executive summary:

The Executive Summary should briefly tells the following:

Market InformationDefine the company's products as well as its market. Identify the competition and brief how the business competes in the marketplace. Profile the company’s customers and explain how your business can satisfy their needs. Financial InformationHighlight the essentials of the financial statements, without getting into too much details about ratios or whatsoever.

ConclusionBrief your recommendation without mentioning the terms and conditions. Always start by the lending rationales.

4. Attachments:

The attachments are part of your report. They are – by definition – attached to it but not “annexed”.

What to attach ?The detailed reports that do not form a crucial part of the report e.g. the investigation report, the market study, the full spread sheet, … etc.

What is an attachment ?The attachment is an “independent” report by itself. The list of customers clients or the company’s previous activity do not constitute an attachment.

How to attach ?Though the detailed information exist in the attachment, it is necessary to summarize the attachment inside the report. Simply in few sentences.

Why they are separate than the report ?Actually they are not separate, they contain additional information that might interest the reader.

4. Continued: Attachments:

The total attachments pages should not exceed the report itself number of pages

Some important notes about the attachments

If there is more than five attachments, it is recommended that you prepare an index for the attachments to cover them.

The attachments that are not prepared by you, should be referenced and “not signed” by you.Remember that the attachment is an independent report by itself. So it must go will all the steps of preparing the report (gathering, evaluating, checking accuracy,…etc.)

The attachments should be sequenced and following the same order mentioned in the report.