Board of Trustees 19 March 2015
Board of Trustees – 19 March 2015
This meeting of the Board focused on:
- projected outturn as at the year end 2014/15
- budget plan for 2015/16
- key performance indicators 2015/16
- new strategy streams for 2015/16
CEO Strategic Update – The Board noted that total income for the full year was close to, but may not quite reach, the budgeted level. Net contribution and cash remain ahead of budget, as they have done all through the year. HE and professional body partnerships continued to perform well, as did the Education Provider business. Subsequent to this meeting, there was confirmation that we have, in fact, achieved the £11.5m target for income, thanks to excellent performance during March, particularly for Education Providers.
Business plan for 2015/16 – The Board received the budget plan for the new financial year. This budget represents a significant uplift in terms of income target – from £11.5m in the current year to £13.4m in 2015/16. . There will be associated cost increases due to the additional resources required, including an increase in staff teams. Discussion focused on the level of confidence that the income line would be achieved. The question posed was whether stress tests applied are sufficiently robust from a risk management perspective. Particular attention was paid to projected performance within HE partnerships and Education Providers, where significant growth is anticipated. Points noted were that (a) accelerated recruitment would see new members of the team in place during April, thereby able to achieve the sales target; (b) there were already identifiable business opportunities in place which would see us well on the way to achieving that target; (c) the critical period of the year for this business stream is June to August, when Business Schools determine their budgets from 1 September onwards – there will therefore be early triggers and alerts should HE perforrnance be falling behind target.
Having assessed these points, as well as considered contingency plans to deal with both a shortfall in income and an overachievement on revenue targets, the Board approved the budget plan for 2015/16.
Key performance indicators 2015/16 – Draft KPIs were tabled at the meeting. It is proposed to extend the use of Net Promoter Score, to measure customer satisfaction across all business areas. It was agreed that the total number of KPIs for the Board to monitor must not be excessive, but should contain a balance between quality measures and quantity measures. In approving the KPIs, the Board noted that there will be a further piece of work conducted to revise the risk management register, to reflect the key strategic objectives, and then achieve alignment with the KPI measures.
New strategy streams for 2015/16 – As previously disclosed to the Board, these are (a) apprenticeships, (b) member insight and engagement, and (c) international activity. The Board welcomed in particular the activities underway to gain Government approval for a degree level apprenticeship in Management and Leadership. The member insight project was commencing with a research phase, incorporating member telephone interviews and an online survey. This strand also encompasses activities to increase the number of Chartered Managers, and the development of Chartered Management Consultant, as a new award sitting within the CMI’s Royal Charter. An international strategy will be developed during the year, for presentation to the Board in September. It was confirmed that there will be no bureaucratic membership and governance structures or physical offices. The focus will be on chartered status, accreditation and qualifications delivery – building on our HE and professional body partnerships. It was agreed that there must be a full understanding and articulation of the criteria to be applied to international partnership development.