A metaphor
The flows of corporate information are complex. It might be helpful to understand these flows through a graphical device, as in Figure 1. We can liken 20th century corporate reporting practice to a tap:
• the flows of information are periodic – restricted to when the tap is turned on;
• uni-directional – the reporting company chooses what to say and when to say it
• controllable by individual actors – this is particularly so for the reporting company itself.
In contrast, 21st century corporate information flows are more like a lake – all participants in the system have the opportunity to use the water (information) in the lake in multiple ways, carrying out numerous processes, including creating, distributing and consuming corporate performance information.
Of course, the tap continues to carry out its function in the age of the lake, but it no longer holds sway. It is only one source of water feeding the lake, and already its uni-directional flow is a limitation on its functionality.
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