KPI MEASURES GUIDANCE

The number of development based discussions with each director

a. Is training limited to optional technical training for relevant committee members

The range of training and development solutions available and how frequently they are accessed

b. Is it primarily left to the individual director to identify their development needs and source solutions

The quality and amount of CPD undertaken by each Director

c. Do all board members complete professional CPD and maintain a CPD log

Post training review discussions and validation d. How is evidence of competence and activities to maintain competence retained

e. Is their a competence framework which could be used at board level

f. How is the effectiveness of any training undertaken assessed and validated

g. How relevant and up to date is the range of training and development solutions specifically available for Directors how is this validated and refreshed

KPI MEASURES GUIDANCE

Agenda quality standards, referenced to the board TOR, applied and monitored a. Do board meetings always run out of time

Standards applied to the quality and clarity of information provided b. Are board papers poorly constructed or contain too much detail

Board papers and reports assessed and rated by the board, with feedback provided to the authors

c. Are the right items and issues going to the board or is everything going up and little gets decided

Assessment of agenda management and evidence of improvement d. Do board papers/reports include options and recommendations, making the issues and key points stand out and therefore making it easier to challenge

e. Do reports and recommendations presented to the board describe the benefits, and risks, for all stakeholders

KPI MEASURES GUIDANCE

Communication of principles to the executive team and how they are expected to be applied

a. Does the board have a clear set of principles that apply to all remuneration decisions

Monitoring of risk committee input to decisions for key personnel and how this influenced final decisions

b. How are decisions tested against these principles and what evidence is provided to the board

Progressive change/improvement in remuneration model c. What input is required from the risk function to remuneration decisions for key personnel

Agenda items and board minutes show the quality and frequency of discussion d. How are individual performance results assessed for compliance with the risk framework and measures

e. What opportunities are provided for the whole board to review and challenge executive and senior management remuneration decisions and awards

KPI MEASURES GUIDANCE

NED visits and activity at business sites a. How close to the business is the board and how interested in the business are the board members

Board meetings at other sites b. How regular and frequent is the engagement and involvement with the business

Frequency and substance of changes to board MI c. Does the board always meet in the corporate HQ or are meetings held at other business sites

Continuous feedback process, seeking and giving, at/after each board meeting

d. What engagement is planned if meetings are held in different sites

e. Does the board, or individual directors, have offsite meeting with the relevant management teams

f. How well do board members engage with each other does this rarely happen except at formal meetings

g. What level of debate is there at board meetings which would indicate all board members are fully engaged

h. How often has the board asked for the reports and MI they are provided with to change

i. Does the MI reflect the current situation within the business, or externally, and the current strategy

KPI MEASURES GUIDANCE

The commitment given by the board to obtain and review the range of performance data reports

a. Does the board have a clear and well articulated vision for the firm

The record of Board satisfaction confirmation or follow up action undertaken

b. Does the board make clear what this means relevant to operational practice

The frequency and extent of customer data obtained and reviewed

c. Does the board review and challenge the effectiveness of the product approval process

The frequency and extent of risk management performance data obtained and reviewed

d. Does the board know how many proposed products were rejected by the risk management committee and for what reason

e. If few or none were rejected, what action would the board take

f. Equally, if most products are rejected, what action would the board take

g. How are product managers held to account by the board

h. Does the board know how suitable new products are for their customers

i. What extra MI do they seek to establish suitability, such as how long customers keep new products

KPI MEASURES GUIDANCE

Sample audits of customer and product performance stats

a. Is there a comprehensive and effective risk framework overseen by the board

Comprehensive reviews undertaken of the strategy and risk framework

b. Is this clearly understood and agreed by all board members

Frequency of engagement with and briefing from/to the risk function

c. How is this communicated and delegated to the risk function

Frequency of potential breach referrals to the board

d. What reassurance does the board seek that what is agreed in the boardroom is implemented/happening within the business

Quality of information reported up to the board by the risk function

e. Is it clear throughout the business what the risk appetite is

f. Is the application of the risk appetite to business activity made as straightforward as possible, such as stating what we dont do

g. Is it clear where the risk thresholds are e.g. the acceptable level of profit from any product or customer category

h. Are there clear processes to refer back to the board for situations where thresholds might be breached

KPI MEASURES GUIDANCE

Number and frequency of customer insight reports commissioned

a. Does the board commission/receive regular customer information and KPI data e.g. - Customer satisfaction ratings - Mystery shopper results- Complaints data - Customer retention data - Product longevity reports

Staff insight activities directly commissioned and overseen

b. What insight is provided to the board with this MI and data reports

Board level reviews undertaken of the insight reports and actioned

c. What level of scrutiny is applied by the board

The level and evidence of effectiveness of follow up actions by the board

d. What methods are used by the board to measure staff satisfaction, particularly around what they are asked to do e.g. customer contact and product promotion, what do staff do and how do they feel about it

e. What process does the board follow to review and follow up the insight reports, challenge negative outcomes and behaviours or recognise positive behaviours