Performance measures
Evolving our approach to measuring progress towards our strategic goals and delivering positive outcomes for all our stakeholders
In line with our objective of delivering a simplified bank, focused on providing long-term sustainable value for all our stakeholders through the strategic actions announced on 1 March 2016, we are now evolving our approach to performance measurement to reflect better the way in which management monitors the performance of the Group. The framework incorporates a balance of key financial performance metrics, while broadening our approach to strategic non-financial measures, and represents an evolution from the Balanced Scorecard that has been used since 2013.
Our revised approach retains a similar focus on achieving positive outcomes for our key stakeholders. However, rather than focusing on a few narrowly defined targets to measure our performance, the revised approach allows for a more holistic assessment, and provides a better reflection of our progress towards the strategic goals of the organisation.
Revised Performance Measurement Framework
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Financial performance metrics
Financial performance metrics – to be delivered within a reasonable timeframe
Group RoTE to converge with Core RoTE
Group Cost: Income ratio below 60%
CET1 ratio 150-200bps above minimum regulatory level
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Strategic non financial performance measures
Delivering positive outcomes for our stakeholders
Customer and Client
Building trust with our customers and clients, such that they are happy to recommend us to others
Successfully innovating and developing products and services that meet their needs
Offering suitable products and services in an accessible way, ensuring excellent customer and client experience
Colleague
Promoting and maintaining:
A diverse and inclusive workforce in which employees of all backgrounds are treated equally and have the opportunity to be successful and achieve their potential
Engaged and enabled colleagues
A positive conduct and values-based environment
Citizenship
Making decisions and doing business that provides our clients, customers, shareholders, colleagues and the communities which we serve with access to a prosperous future, through our Shared Growth Ambition
Proactively managing the environmental and societal impacts of our business
Underpinned by how we behave towards all our stakeholders through our conduct and culture