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CHOICE member voting briefing June 2018
Welcome to my June Board briefing. There's a lot here, so please settle back and enjoy.
The arrival of cooler weather across much of the country has seen a rise in people looking to buy heaters, which has helped us attract lots of new members to CHOICE. If you're looking for economical ways to make your house warmer, Chris Barnes from our testing area recently provided some useful tips on heating options in a segment on Studio 10, which you can watch here.
The Board and I met on 28 May, with the major item on the agenda being our strategy for the next three years. We also approved next year's budget, began planning for this year's Board election and Annual General Meeting, and were briefed on CHOICE's role in the banking royal commission.
CHOICE's Strategy 2021
In my Board briefings in December and March I discussed how we were analysing CHOICE's current performance, in the context of the opportunities and threats facing us, to help us work out the key priorities for our strategy over the next three years. Thanks to those members who responded to my invitation to provide suggestions to feed into our thinking. I know myself, the Board and the management team appreciate the time you took to send your thoughts in.
During an offsite day in April, the management team presented its initial thinking on priorities for the next three years to the Board. This ultimately fed into a new strategy that was endorsed by the Board on 28 May.
The ultimate objective of the new Strategy 2021 is to improve CHOICE's impact and sustainability. This reflects the fact that we exist to make an impact for consumers. The need for CHOICE isn't going away, so the organisation must remain sustainable in the long-term.
There are three key ways we'll aim to do this:
- We will increase the power of consumers by winning more of our battles for better consumer rights, and helping more people make good decisions using our tools and services.
- We will engage more people in what we do, through coming back to our website on a regular basis, joining our campaigns or participating in CHOICE.Community.
- We will grow our revenue from around $20M today to over $26M by 2020–21. We believe that this is necessary if CHOICE is to remain relevant and powerful in the future.
While these are major priorities, we also need to improve the foundations of the organisation by ensuring we have a culture that supports growth, technology and good quality data.
The Board has approved ambitious targets for growing consumer power, the number of people we engage and revenue growth.
We'll communicate our progress in implementing the strategy through future Board briefings and our Annual General Meeting. If you have any questions, by all means get in touch with me at firstname.lastname@example.org.
To support the first year of the new strategy, we approved the budget for 2018–19.
This will involve a deficit of $1.55M in 2018–19. This is the second year we've budgeted for a deficit of around this level. This is a very deliberate decision, reflecting the fact that the organisation has healthy financial reserves and that we need to invest in changing how CHOICE helps consumers, especially through an ongoing investment in technology.
We are, however conscious that we cannot run deficit budgets forever, so before considering the budget we examined a range of financial scenarios prepared by management. The Board discussed these in some detail and was ultimately confident that it's the right decision to continue to invest in the organisation, even if this means more years of deficit budgets. We're confident that across the next two to three years, we can return to a balanced budget without our cash reserves becoming unacceptably low. We will, however, be carefully monitoring revenue and expenditure so that we can take early action to change our strategy if required.
As Chair, I am extremely aware of these important choices, and I'm confident the Board, our management team and the organisation are also aware of the investments we're making to secure our future. We will remain alert and conscious of this privilege.
Three positions on the Board fall for election each year, with nominations opening in early August. Our governance processes require us to analyse the skills required on the Board, so that we can give members our views about the gaps that should be considered in the Board election process.
We spent some time discussing the key skills required on the Board, taking into account what we want to achieve through our new strategy.
One current Board member, Ben Slade, has announced that he won't be standing for re-election, so we've decided to start the search process early for a potential replacement. We're looking for someone with skills and experience in high-level strategic and commercial operations and/or digital content, products and services. If you're interested, or know of other members who possess the skills and experience we're looking for, please see this notice for further information.
Our Director of Campaigns and Communications, Erin Turner, briefed us on CHOICE's involvement in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. We see this as an important opportunity to achieve major reforms to the financial system and to put consumer interests at its heart.
CHOICE has a small team working on the royal commission, with support from a range of other staff. We were invited to make a submission at the start of the process and have since been granted leave to appear, which means that we're able to make further submissions at the end of each round of hearings on what should be done to fix the issues that have been revealed.
We expect this to be a minimum two-year commitment, because the opportunity for reform won't end when the commission does. We'll need to work closely with politicians and policy makers beyond the commission process, to make sure that it results in meaningful changes to the law.
Read more about our position and join the campaign.
I'll be back in touch in early August after our next meeting. Until then, if you have any feedback please email me at email@example.com.
CHOICE voting member briefing March 2018
Welcome to my first Board briefing of the new year. I hope you had the opportunity to enjoy a summer break and have returned refreshed, happy and ready to face 2018.
We met for the first time this year on 1 March, where we welcomed a new Board member, spent some time discussing our strategy, and elected office bearers.
Welcome to Alexandra Kelly
We were pleased to welcome new Board member Alexandra Kelly, who was elected to the Board at the 2017 Annual General Meeting.
Alex is Principal Solicitor of the Financial Rights Legal Centre, a community legal centre in Sydney that operates the National Debt Hotline and Insurance Law Service. She brings considerable legal expertise to the Board, along with a detailed understanding of the problems that consumers experience in financial services so we're thrilled with her appointment and keen to welcome her contributions.
Reviewing our strategy
We spent a large part of our meeting continuing our discussions about what needs to change in CHOICE's next three-year strategy.
The CHOICE management team prepared some excellent analysis to guide our discussions, which highlighted the major changes in technology, the economic and political environment, and the demographic profile of the Australian community over the past few years.
One of the key themes emerging from our discussion was the need to ensure that we make the most of some our unique advantages, such as our reputation, our history of campaign wins, our deep understanding of consumer products, our high volume of website traffic and our emerging innovation capabilities.
We'll be continuing this discussion in April, to provide further guidance to management and expect to approve a new three-year strategy at the end of May.
If you have any thoughts on things that CHOICE should be doing differently, I'd be keen to hear from you. Please email me at firstname.lastname@example.org.
Reviewing our performance
We also spent some time discussing how CHOICE has been going over the first two quarters of 2017–18.
It has been a busy period for our campaigns team, especially with the financial services royal commission underway, and we see this as an opportunity to drive further reforms to protect consumers.
Financially, the organisation is broadly on track. We have increased expenditure across areas such as product development and innovation so that we can do more to assist consumers, but we expect it to take time for this to result in significant revenue growth. As you know from previous briefings, we've budgeted for a deficit this year. This is something we can sustain and are comfortable with, as we have strong cash reserves. At this point in the year, the organisation is on track to remain within our budgeted deficit.
At the first meeting of each calendar year, we elect a Chair, Deputy Chair and Company Secretary.
I was thrilled to be re-elected as Chair, alongside Deputy Chair Bill Davidson.
Linda Magee, who has been our Company Secretary for the past six years, is leaving CHOICE at the end of March. Linda has made an enormous contribution spread over 18 years at CHOICE and we are all sad to see her go. Linda will be replaced by Jessica Hill, who takes on these duties alongside her role as Director of People and Culture.
I will be in touch again after our next meeting in April. If you have any feedback, you can contact me at email@example.com.
Chair of the Board