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 email@example.com.
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 firstname.lastname@example.org.