Prior to any engagement, objectives are identified and shared internally.
For each company we invest in we identify and agree strategic milestones that we expect the company to deliver on over the holding period. We typically identify 3 or 4 key strategic levers that are bespoke to the organisation and important to the development of the business, aiming to keep the directors focused and ensure continued progress.
Objectives shift over time depending on business priorities, market forces and stakeholder considerations, amongst other things. For example, objectives could include:
- improvements to reporting, including ESG factors
- board composition
- improvements to governance arrangements
- product or geographic expansion or variance, including due to ESG related market forces
- staff retention and reduction of absence rates
- implementing compliance programmes with forthcoming ESG legislation.
These provide a framework for objectives to discuss with the companies during our regular scheduled engagements with them. As an example, we identified the need in one of our investee companies to make improvements to the quality and composition of its board and worked with them to help identify a new non-executive director that could add material value to the business. We helped drive this to conclusion and introduced individuals into the process to assist.
In our engagements we also work with other significant shareholders to understand their perspectives or to seek support for improvements that need to be made.