board reporting framework - engage your board members and keep them strategic!

Board Reporting Framework

Copyright © 2013 Artique Consulting. All rights reserved.

A Framework to engage your board members and keep

them strategic!

Research1. Global shift from traditional reporting towards integrated reporting (i.e.

combining financial, management commentary, governance, sustainability, etc.) into a coherent whole that explains the organisations ability to create and sustain value. (Source: IIRB: Towards Integrated Reporting – Communicating Value in the 21st Century)

2. The Board reporting process needs to occur more efficiently and effectively for both the board and management. (Source: David Parmenter – Limit the time spent on Board Reporting)

3. The volume and complexity of information will continue to increase, only the most material and important information should be reported. (Source: IIRB: Towards Integrated Reporting – Communicating Value in the 21st Century)

4. Boards should limit the amount of information being fed upwards, otherwise they drown in detail. (Source: Damon Kitney – Directors need to set agenda)


BasicsA Reporting Framework must answer the following questions:

1. What information do we need to fulfil our role?

2. What is the information telling us?

3. What do we need to do about it?

4. How will this be done?

5. How will we know when we it has been done?


Typical Requirements

Utilise best practice and research and guiding principles to ensure reporting remains concise, reliable and strategically focussed, reduce complexity and on-going management administration.

Align with the current Governance structures and provide an appropriate level of information to support decision making and performance oversight for the Board, Committees, Groups, Customers and External Stakeholders.

Provide alignment and monitor performance of company objectives, Business plan and Strategies, Sustainability Plan, Business Model and Business Plan.

Should consist of a balance between LAG (i.e. Indicates what has happened) and LEAD indicators (i.e. Indicates what is happening now) and performance measures.

Utilise visualisation and 1 page dashboard reporting to communicate critical business information.


Objective

The core objective of a Board Reporting Framework is to guide and communicate information needed to monitor performance in a clear, concise, connected and comparable format to Internal and External

Stakeholders

A Board Reporting Framework must bring together the material information about strategy, governance, performance and prospects in a

way that reflects the commercial, social and environmental context within which it operates


Framework Overview


1.1 Stra

tegic focus

1.2 Connectivity of Information

3.1 Strategic Objectives

and Strategies

3.2 Business Management

3.3 Risk and Compliance

3.4 Financial Management

3.7 Client and Stakeholder

Engagement

3.6 Benchmarking and Evaluation

3.5 Quality Management

1.5 Co

ncisen

ess, reliability an

d m

ateriality

1.4 Responsiveness and stakeholder inclusiveness1.

3 F

utu

re o

rien

tati

on

Key

2.1 Stra

tegic Outcomes D

ashboard 2.2 Company Profile Dashboard

2.3

Fin

anci

al P

erfo

rman

ce D

ash

bo

ard

2.4 Bu

siness D

evelop

men

t Dash

bo

ard

1. Guiding Principles

2. Reporting Dashboards

3. Content Areas

Framework Principles


1.2 Connectivity of information - shows the connections between the different components

of A companies business model, external factors and the various resources and

relationships on which The company and its performance depend.

1.1 Stra

tegic focus

1.2 Connectivity of Information3.1 Strategic

Objectives and Strategies





Engagement



1.5 Co

ncisen

ess, reliability an

d m

ateriality

1.4 Responsiveness and stakeholder inclusiveness

1.3

Fu

ture

ori

enta

tio

n

2.1 Stra

tegic Outcomes D


2.3

Fin

anci

al P

erfo

rman

ce D

ash

bo

ard

2.4 Bu

siness D

evelop

men

t Dash

bo

ard

1.1 Strategic focus - provides insight into a companies strategic objectives, and how those objectives relate to its ability to create and sustain value over time.

1.3 Future orientation - includes The companies expectations about the future,

as well as other information to assess future prospects or uncertainties it faces.

1.4 Responsiveness and stakeholder inclusiveness - provides insight into the companies

relationships with its key stakeholders and how and to what extent the company understands, takes into

account and responds to their needs.

1.5 Conciseness, reliability and materiality - provides concise, reliable information that is material to assessing the companies ability to create and sustain value in the short, medium and long term.

Key

1. Guiding Principles

2. Reporting Dashboards

3. Content Areas

Framework Reporting Dashboards

3.1 Strategic Objectives and

Strategies





Engagement



2.1 Stra

tegic Outcomes D


2.3

Fin

anci

al P

erfo

rman

ce D

ash

bo

ard

2.4 Bu

siness D

evelop

men

t Dash

bo

ard

2.1 Strategic Outcomes DashboardThe Strategic Outcomes dashboard is a future focussed dashboard that measures the performance of a companies Key Performance Indicators (KPI) linked to strategic objectives and strategies.

Content to be reported3.1 Strategic Objectives and Strategies3.7 Client and Stakeholder Engagement

AudienceInternal and External

2.3 Financial Performance Dashboard

The Financial Performance Dashboard provides a series of indicators that measure the key financial performance information necessary to monitor return on investment, revenue growth and the financial sustainability.

2.4 Business Development Dashboard

The Business Development Dashboard provides a series of indicators that measure critical areas of business improvement that include core capability development, risk mitigation, governance structures, resource utilisation, etc.

LEAD Dashboards – Future State Focussed

LAG Dashboards – Current State Focussed

2.2 Company Profile DashboardThe Company Profile dashboard provides a concise description of the companies current market share, its reputation and the results of offered Programs, Products and Services.

Content to be reported3.5 Quality Management3.6 Benchmarking and Evaluation

AudienceInternal and External

Content to be reported3.2 Operations Management3.3 Risk and Compliance

AudienceInternal ONLY

Content to be reported3.4 Financial Management

AudienceInternal ONLY

LEAD Dashboards – Indicators of what is about to occur

LAG Dashboards – Measures on activity/process that has occured

Framework Content Areas

3.7. Client and Stakeholder Engagement – These dashboards and supporting reports must provide essential context by identifying:· Key stakeholders, their legitimate needs, interests and expectations.

3.1 Strategic Objectives and

Strategies





Engagement



3.1. Strategic Objectives and Strategies – These dashboards and supporting reports must provide essential context by identifying:· Vision, principal activities, market share, products and services.· Business model, value drivers and critical stakeholder dependencies;· What makes the company unique and able to realise value in the future· The commercial, social and environmental context within which the business operates.

3.2. Business Management - These dashboards and supporting reports must provide essential context by identifying:· Resources and relationships that are key to the companies success.· KPI’s (Key Performance Indicators) and KRA’s (Key Result Areas) regarding strategic

objectives and related strategies – including how the business fared against its targets.· Critical governance structures and decision making processes.

3.3. Risk and Compliance – These dashboards and supporting reports must provide essential context by identifying:· Key risks and opportunities – including processes to determine and manage/ mitigate

risks and opportunities. · Significant laws and regulations that affect the companies ability to create and sustain

value in the short, medium and long term

3.4. Financial Management – These dashboards and supporting reports must provide essential context by identifying:· The financial viability of the business in the short, medium and long term.· The profitability and financial performance of Programs, Products and Services

3.5. Quality Management – These dashboards and supporting reports must provide essential context by identifying:· The extent to which quality standards, criteria, guidelines and frameworks have been

met (including the outcomes achieved) during the lifecycle of a Program, Product or Service.

3.6. Benchmarking and Evaluation –These dashboards and supporting reports must provide essential context by identifying:· The impact and the continued availability, quality and affordability of Programs,

Products and Services (including the impact (both positive and negative) on the resources and relationships on which it depends.

· Customer, Market and Industry benchmarks of performance comparable to competitors.

Framework DashboardsStrategic Outcomes Dashboard

Objective 1 Objective 2 Objective 3 Objective 4

KEY PERFORMANCE INDICATOR

Financially Viability

Status – Insert comments hereUpdate indicator above for reporting period


Customer Feedback


Value Proposition

Str

ate

gie

s

Profitability Analysis

MeasureBudget YTD -Day/Month/

Year

Performance to Target

Actual YTD-Day/Month/

Year

Variance to target

Trending

Expenses $X,XXX,XXX $X,XXX,XXX $XXX,XXX X%

Revenue $X,XXX,XXX $X,XXX,XXX $XXX,XXX X%

Profit $X,XXX,XXX $X,XXX,XXX $XXX,XXX X%

S1 – Strategy #1

Strategy Objective:

Strategy Activities Completed last QTR (QTR X 20XX-XX):

Insert comments here

Planned next QTR (QTR X 20XX-XX)Insert comments here

CEO Comments:Insert comments here

S2 – Strategy #2

Strategic Objective:

Strategy Activities:Completed last QTR (QTR X 20XX-XX):



CEO Comments: Insert comments here

S3 – Strategy #3






S4 – Strategy #4






S5 – Strategy #5

Strategic Position:

Strategy Activities:Completed last QTR (QTR X 20XX-XX)


Planned next QTR QTR X 20XX-XX)Insert comments here


Customer Analysis

Customer Evaluation X out of 5 X out of 5

Ke

y R

esu

lt A

reas

Demand Target YTD

Actual Participants

YTD


Business Growth



Sector Participation

Status - Insert comments hereUpdate indicator above for reporting period

Objective 6Objective 5


Brand Development

Status - Insert comments hereUpdate indicator above for reporting period

MeasurePerformance to Forecast

Trending

Performance Target

Average feedback score

for the QTR

Performance to Target

Participants XXX XXX XX XX

Trending

Demand Target to

EOFY

DET

Cath

ISQ

Increase / Exceeding Forecasts

No Change / Not Measured

Decrease / Forecasts not

achieved

Legend

ALL

KPI/Objectives Achieved

On Target to Meet KPI/Objectives

Further Work required to meet KPI/Objectives

Variance

Comments: Insert comments here. Update trend indicators for reporting period

CEO Summary:Insert comments here



IndicatorTrend Relevance

Dashboard developed by:

Example

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