Annual Report and Accounts 2015 Objects of the Institute of Directors
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Inspiring business Annual Report and Accounts 2015 Objects of the Institute of Directors Objects of the Institute of Directors Our Royal Charter Royal Charters are reserved for bodies that work in the interests of the public and represent pre-eminence, stability and permanence in their field. The IoD was awarded its Royal Charter in 1906 and it remains an acknowledgement of the continuing work we do to promote professionalism in business. It is our mission and responsibility to: Better directors Promote for the public benefit high levels of Better business skill, knowledge, Promote the professional study, research competence and development and integrity Better economy of the law on the part of and practice Represent the directors, and of corporate interests of equivalent office governance, members and Better services holders however of the business and to publish, Advance the described, of community to disseminate or interests of companies government and otherwise make members of the and other in the public arena, available the useful institute, and to organisations. and to encourage results of such provide facilities, and foster a study or research. services and climate favourable benefits for them. to entrepreneurial activity and wealth creation. 2 “ Business is one of the Contents most meritocratic parts Objects of the institute 2 of British society. I Chairman’s message 4 want every corner to be open to the best and DG’s message 5 the brightest, no matter 2015 overview 7 • Membership 7 their background, age, • Professional development and finance 8 • Policy and representation 9 race or gender. ” • Our people and our culture 10 Lady Barbara Judge CBE • National and regional highlights 11 Chairman of the IoD Governance statement 13 Governance and control of the institute Governance structures 18 IoD chairmen from geographical areas 20 Board, council and committee members Changes to the IoD constitution 22 Good governance initiative 22 Statement of board responsibilities 23 Financial review 24 Independent auditor’s report 26 The accounts 27 Premises 45 3 Chairman’s report Chairman’s report This year marks 110 years since the One of the greatest pleasures I have had Institute of Directors gained its Royal in my role as chairman is meeting IoD Charter. Despite its age this dynamic members all around the country. One of document still guides our mission today. my first engagements was visiting IoD We remain faithful to the central tenets Wales in Cardiff for their excellent Director of the Royal Charter – a commitment of the Year awards ceremony. I have to support our members, encourage also attended events in Manchester and entrepreneurial activity and promote Edinburgh and have a packed schedule for business as the bedrock of a prosperous the year ahead. society. All of this is as important in 2016 as it was in 1906. I am pleased to report that our pilot membership scheme, IoD Advance, is Lady Barbara Judge CBE Throughout 2015 the IoD continued to well underway and we will be launching Chairman of the IoD evolve to meet the needs of the modern an exciting new Performance Academy director with upgrades to our premises, – a dedicated space for professional new membership offerings, cutting-edge development courses in 116 Pall Mall – professional development courses and a early next year. We have also launched higher public profile than ever. a series of continued professional development (CPD) taster courses across This was my first year as IoD chairman and the country to introduce IoD members to it is an honour and a privilege to serve the CPD and help them to exert their influence “Throughout UK’s leading directors in this role. I want in the boardroom. my time at the IoD to be characterised by 2015 the IoD diversity – both in terms of the IoD and the Our hospitality offering at 116 Pall Mall is wider business community. also changing as we go into partnership continued to with Benugo. We are delighted to be evolve to meet Business is one of the most meritocratic working with an organisation that has such parts of British society. I want every corner a strong presence across British the needs of the to be open to the best and the brightest, high streets and in some of the country’s no matter their background, age, race or best-loved museums, galleries and shops. modern director gender. Through a big media presence, engagement with government, and a This year, I look forward to continuing with upgrades few tweaks to our own organisation, I to push forward my three priorities as to our premises, know the IoD can remain one of the most chairman of the IoD: important voices in this field. new membership • Promoting women in executive Having been the ‘first woman this’ and leadership positions and encouraging offerings, ‘first female that’ a good many times in more female business leaders to my career (including as chairman of the join the IoD. cutting-edge IoD), I understand how vital it is to smash professional through the glass ceiling, which has • Nurturing the UK’s youngest been cracked so successfully in recent entrepreneurs through our IoD 99 development years. Last year, we held events to bring programme. professional women into contact with the courses and a IoD, demystify the board appointment • Offering guidance, training, advice and process, and examine the barriers to expertise to those coming to the end of bigger public women seeking executive appointments. their corporate careers and looking to profile than ever” I also gave evidence to the Women and the next challenge. Equalities select committee on closing the gender pay gap and increasing the The IoD is an integral part of Britain’s number of women in senior management. business landscape, and I look forward I am excited to see the committee’s to keeping us at the cutting edge of the suggestions, and the work Sir Philip entrepreneurial and digital revolutions that Hampton will be conducting later this are transforming the way we do business year on this same issue. in the UK today. 4 Director general’s strategic review Director general’s strategic review The IoD remains in a period of transition targets future full IoD members, has as we chart a new course towards being gone from strength to strength since its the most relevant organisation for the inception in late 2014. Its current target modern business leader. is to reach 1,700 members by the end of 2016. Not only is the IoD 99 a pipeline of The impact of our chairman, Lady Barbara potential long-term members, but signing Judge, has been considerable in the up aspiring businesses has knock-on year since the last Annual Report. As the benefits in shifting perceptions of the IoD, IoD’s first woman chair, she has raised and expanding our appeal. the profile of the IoD on diversity issues, and provided invaluable support in the The introduction of the Regus cards has drive to modernise the IoD’s premises and been a useful addition to IoD membership. Simon Walker services. The success is a credit to our Affinity team Director general of the IoD who were one of the best-performing Financial performance departments within the IoD over 2015, 2015 was a year of turnaround in the delivering £100,000 above budget. financial performance of the IoD. After substantial investment and a planned Professional development deficit in 2014, the IoD returned to positive 2015 was a very successful year for our territory in 2015 with a surplus before tax professional development team. The of £394k, the best result since 2010. This development courses reached their “The IoD is still was achieved through solid sales figures highest ever level in November, as a result combined with a big reduction in the of a new business development strategy in a period of cost base, driven by the closure of 123 and the efforts of the business support Pall Mall in the second half of 2014. The teams. This is an encouraging test for our transition as solid surplus was accompanied by a cash plans to reach double-digit growth. we chart a new inflow of £1.1 million, which was achieved despite continuing high levels of capital We are ensuring that we remain cutting course towards investment in 116 Pall Mall and IT systems. edge by building a performance academy on the third floor of 116 Pall Mall, which will being the Membership open early next year. The IoD is now in a stronger position most relevant than it has been for several years. Corporate governance organisation Our previously declining membership and policy has started to grow. Central to our The Policy Unit remains extremely active for the modern membership strategy in 2016 is the in representing the members’ views to Advance programme, the pilot for which government, and in the media. Whether business leader” began in March. Advance offers members countering damaging immigration personalised networking and much more restrictions on businesses, arguing for a user-friendly access to IoD services simpler tax system or ensuring the voice and training. The level of demand has of business is heard in the EU referendum already been very high, with more than a debate, the IoD constantly challenges thousand directors expressing interest in a media and political conventional opinion pilot which has just 350 places. on behalf of our members. Advance is enabled by the improved use On the subject of Europe, the IoD aims of technology. Our website and customer to articulate the views of the members, relationship management (CRM) system while being a trusted source of impartial are being overhauled to improve the information on the potential consequences experience of accessing IoD services and of the referendum.