board reporting framework - engage your board members and keep them strategic!
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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)
Copyright © 2013 Artique Consulting. All rights reserved.
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?
Copyright © 2013 Artique Consulting. All rights reserved.
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.
Copyright © 2013 Artique Consulting. All rights reserved.
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
Copyright © 2013 Artique Consulting. All rights reserved.
Framework Overview
Copyright © 2013 Artique Consulting. All rights reserved.
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
Copyright © 2013 Artique Consulting. All rights reserved.
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
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 inclusiveness
1.3
Fu
ture
ori
enta
tio
n
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
1.1 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
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
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
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
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
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
KEY PERFORMANCE INDICATOR
Customer Feedback
Status – Insert comments hereUpdate indicator above for reporting period
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):
Insert comments here
Planned next QTR (QTR X 20XX-XX)Insert comments here
CEO Comments: Insert comments here
S3 – Strategy #3
Strategic 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
S4 – Strategy #4
Strategic 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
S5 – Strategy #5
Strategic Position:
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
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
KEY PERFORMANCE INDICATOR
Business Growth
Status – Insert comments hereUpdate indicator above for reporting period
KEY PERFORMANCE INDICATOR
Sector Participation
Status - Insert comments hereUpdate indicator above for reporting period
Objective 6Objective 5
KEY PERFORMANCE INDICATOR
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
Comments: Insert comments here. Update trend indicators for reporting period
Comments: Insert comments here. Update trend indicators for reporting period
IndicatorTrend Relevance
Dashboard developed by:
Example
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Copyright © 2013 Artique Consulting. All rights reserved.