Strategic Reporting Index Accolades
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2 July 2013 Strategic Reporting Index Accolades 2013
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Reporting research and advisory services firm FutureValue confers the Strategic Reporting Index Accolades to UK listed companies for the quality of strategy-related content in the narrative sections of their 2012 Annual Reports. Over the last six years FutureValue has gifted its Index rankings annually for the 'strategic value" in corporate reporting awards. The 2012 Awards included a host of star achievers. In this year of impending major narrative reporting change FutureValue is pleased to join with Communicate for the first time to confer this seventh set of honours based on its Strategic Reporting Index
Transcript of Strategic Reporting Index Accolades
2 July 2013
Strategic Reporting Index Accolades2013
Background to the Accolades
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Who we are and what we do
– Our purpose– We exist to help companies and their stakeholders benefit from
effective narrative reporting
– Our mission
– We aim to make the market value of listed companies a less risky and more certain proposition
– Our aspiration
– We aspire to establish a standard for the effective and comparable reporting of strategy and governance
– Our strategy
– Unimpeachable, authoritative and unique research of narrative reporting
– Professional services to help companies achieve the highest standards
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Why we confer these Accolades
– To demonstrate that the reporting of strategy has a distinct value
– To create awareness that narrative can be as comparable as financials
– To recognise the Companies that achieve the highest standards
Words can be as comparable as numbers
PAST FUTURE
P&L Account&
Balance Sheet
How we assess the quality of narrative reporting
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How we create the Strategic Reporting Index
Annual Report
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How scores have changed over time
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How we know it works
How we know it works
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How we know it works
How we know it works
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The Accolades
– Best Business Model
– Best Key Performance Indicators
– Best Strategic Risk
– Best Strategic Capability
– Best Shared Value
– Strategic Leadership
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19 Companies shortlisted in total
5 Companies shortlisted for two accolades
16 Companies shortlisted before
2 Companies shortlisted every year
8 Companies have won before
14 Sectors represented
4 Companies come from the FTSE250
Best Business Model
Shortlisted Companies
British American TobaccoFerrexpoSpirent CommunicationsTate & Lyle
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Foundation of the strategic framework
Defines the logic of the business
Distinct sources of value – created, developing
Basis for sustainable profitability
Encompasses value system of enterprise
Why BAT’s business model edged the others
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Foundation of the BAT strategic framework
Embodies the logic of the business
Identifies sources of value created
Specifies investment in value sources
Aids understanding of BAT as a business
Best Key Performance Indicators
Shortlisted Companies
ARM HoldingseasyJetHalmaNational Grid
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Complete set of KPIs – financial and non-financial
Ease of intelligibility
Good trend data
Illustrative of strategic progress
Usefulness to Board in monitoring performance
Why Halma’s KPIs were adjudged the best
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Explicit link to strategy
Comprehensive explanation
Target and strategic focus for each KPI
Five years' trend data
Shows integral role of KPIs in managing business
Best Strategic Risk
Shortlisted Companies
FresnilloMarks & Spencer GroupRSA Insurance GroupTUI Travel
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Key risk factors relative to strategy
Influences on achieving objectives
Specific management, control or mitigation comments
Risk governance, appetite, management
Clear sensitivity to the future
Why TUI Travel’s evaluation of risk inspires confidence
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Comprehensive and articulate
Accessible and intelligible
Shows sensitivity to the future
Emphasis on strategic risk
Overall demonstration of strategic management
Best Strategic Capability
Shortlisted Companies
AstraZenecaLloyds Banking GroupPremier FarnellUnilever
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Investment in key strengths and resources
Development of intangibles and hidden assets
Attention to value drivers
Value system wide
Match to indicated demands of strategy
Why AstraZeneca’s narrative is more strategically capable
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83 qualifying references
Recurrent themes reflect likely demands of strategy
Coverage of whole value system
Annual Report signposts strengths and resources (p25)
Balanced and credible
Best Shared Value
Shortlisted Companies
Johnson MattheyLand Securities GroupSerco GroupUnilever
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Integration of social, environmental in business strategy
Attention to full range of stakeholders
Clear environmental policy, commitment
Sustainability governance
Reporting of social and environmental performance
Why Unilever is best at sharing value
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Unilever Sustainable Living Plan central to business model
Social and environmental aspects fundamental to Group vision
Comprehensive coverage of broad range of stakeholders
Clear environmental and social targets and policies
Integrated reporting builds persuasive case led by CEO
Strategic Leadership
Shortlisted Companies
FresnilloLloyds Banking GroupNational GridUnilever
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Clarity and rigour of strategic thinking
Robust and integrated strategic framework
Strategic management in past, present and future
Development of strategic capability
Clear and persuasive shared value
Why Lloyds is the 2013 strategic leader
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Topped the 2013 Index with 8.6
Clear and intelligible strategic framework
Demonstrated rigour in strategic thinking
Good past, present and future
Comprehensive strengths and resources
Integrated reporting of shared value
Looking ahead to 2014
– True Strategic Reports for post-October year-ends?
– Allowance for different regulatory regimes in the 2014 Index
– Impact of Integrated Reporting on regulatory reporting?
– More first time companies in our short list?
– Partners to share FutureValue’s mission and aspiration
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