• Conciseness
• Connectivity of information
• Consistency and comparability
• Strategic focus and future orientation

Key observations:

BAE Systems presents a balanced set of KPIs which include both financial and non-financial measures. KPIs are linked to the overall strategy and specifically to elements of ‘Total Performance’ which is an element of the company’s business model. For each KPI a definition and overall comment on performance is included, with a clear indication as to whether the targets for the year were met.

Interestingly, BAE Systems also highlights those KPIs which form part of the executive director’s annual incentive plan and this connection, along with the link to risks, provides a more holistic overview of how performance of the business impacts risk and reward.