another year, page-4

Tweaty, are you coming along to the AGM?

I am a great fan of the friends of compass website and their shareholders intiative. What it shows is that with a bit of co-ordination, communication and effort amungst shareholders better outcomes for the shareholders can be acheived.

I'd like to meet everyone on hotcopper as well as at the AGM to figure out what common concerns we all have and how we best as the business owners think these should be addressed.

As an exmaple I for instance still have concerns with regards to the visiblity and measurability of performance for senior management.

If a group of shareholders pro-actively conceive and helped implement some KPI's then we could better measure the performance of each senior manager against the overall companies results over time.

A couple of easily measurable KPI for example for the CEO could be:

- Acheive a NPAT of at least $5 million within 3 years
- Acheive a market capitalisation of at least $10 million for 90 consective days within 12 months
- Acheive outperformance in the INL shareprice of at least 5% to the ALLORDS each financial year

A couple of easily measurable KPI for example for CFO could be:

- Acheive a 25% increase in revenues per employee within 12 months
- Acheive a 10% increase in profit margin from revenues per employee within 12 months

If visible KPI's were introduced we the shareholders wouldn't need to constantly guess at managements performance (for years) via a forum we could see it quarterly in action.

For over performing senior management the KPI's give the shareholders a chance to recognise their contributions and reward them accordingly.

For under performing senior management the KPI's give shareholders the chance to consider alternative skillsets within the wider market with a better chance of acheiving the KPI targets set.