Strategic commercial interventions: monitoring framework

4. Engagement

In addition to the key aspects highlighted above, consideration should also be given to the right level and timing of engagement highlighted in relation to the ongoing monitoring of SG’s assets:

• Business Engagement:
  • Where applicable, sponsor team attend Board meetings and are sighted on investment papers/management accounts/key decisions. This ensures SG is kept updated on progress and notified of any key risks. This interaction with senior personnel across the assets is an important aspect of monitoring as it enables officials to observe and witness first hand key Board level discussions and to add value / provide clarity where required.
  • There will be a variety of different types of board papers requested by sponsor teams depending on the type of intervention - they will include a CEO report covering key activities during the previous quarter, quarterly management accounts, sub-committee papers and ad-hoc papers covering decisions the board is required to sign off (for example, capital expenditure, renumeration, business development strategy).
• Timing of Engagement:
• Weekly: Internal meetings within SCAD amongst sponsor team and regular engagement with SG external advisors (where applicable) to discuss the assets and utilise an action tracker to manage key activities.
• Fortnightly / Monthly: Sponsor team engagement with asset management team to discuss financial and operational update reports including monthly Board briefing packs.
• Quarterly: More formal monitoring point to review substantive information pack on operating and financial performance (revenues, costs, prices, balance sheet information, progress of capital projects, health & safety issues, staffing, orders etc). Where applicable this information should be supplied/reviewed by external advisors.