A_snapshot_of_FTSE_350_reporting_-_PwC

A_snapshot_of_FTSE_350_reporting_-_PwC - A snapshot of FTSE...

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Compliance mindset supresses effective communication A snapshot of FTSE 350 reporting Reporting, if done well, can deliver competitive advantage in a variety of ways. It can help secure capital and credit, win the war for talent, and build strong business relationships. With continued uncertainty in the economy, trust and confidence are in short supply. Unwelcome surprises are likely to have a dramatic impact on the market and on a company’s reputation. Clear, engaging and informative reporting is currently even more critical to management credibility and to meeting the challenges of rebuilding trust and share price. The challenge, and the opportunity, is to ensure that the quality and sustainability of corporate performance is well understood by all key stakeholders. Our annual review of the narrative reporting practices of the FTSE 350 shows that the vast majority of companies continue to cover the key bases of reporting. However, few provide the depth of understanding or a clear and coherent picture of performance which we consider necessary in the current economic environment. Put simply, we believe that a compliance mindset is often suppressing effective communication.
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External drivers Market context on which strategy is built and performance assessed, (eg, competitors, regulatory impact, macro-economic environment). Strategy A summary of strategic priorities that deliver objectives and how these align with the business / operating model, risk, remuneration policies and key performance indicators. Risks Principal risks of the business – those that keep management awake at night. How they align with strategic priorities and are identified, monitored and managed . Resources Key resources and relationships used to achieve the company’s specific strategic objectives and how they are managed and performance assessed. Performance – KPIs Key financial and non-financial measures used to assess performance and how these are aligned with strategic objectives and priorities. Performance – fundamentals Information that helps provide greater insights into the quality and sustainability of financial performance eg, segment reporting, cash flow / funding analysis and non-GAAP measures. Sustainability Management’s response to business critical ‘sustainability’ risks and opportunities, how they are embedded into strategic decision- making and day to day operations, and how performance is measured. Look and feel Structure and navigation, narrative flow and use of graphics, tables and design to make the report easy to understand. Our review of FTSE 350 narrative reporting Our review had three main areas of focus: For each company we assessed the effectiveness of their communications using these three focus areas to consider eight aspects of reporting spanning the integrated information set shown on page 6 of this paper: This data is based on the results of a desk-top research project undertaken in the first half of 2009 to review the narrative reporting sections of the
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This note was uploaded on 05/22/2011 for the course BU 36101 taught by Professor John during the Spring '11 term at University of Liverpool.

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A_snapshot_of_FTSE_350_reporting_-_PwC - A snapshot of FTSE...

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