IAG's approach to managing performance

Everything that we do - from divisional strategies to individual goals - needs to support the execution of our strategy and our ambition to become the world's most respected group of general insurance companies.

To ensure we are managing our diverse portfolio of businesses towards this common goal, IAG uses strategy maps and balanced scorecards as key components of the strategic planning process. Strategy maps translate the strategic plan into a robust balanced scorecard, which measures progress against goals and objectives.

The Group strategy map is used by operating divisions to develop divisional strategy maps, which support the corporate strategy. Divisional performance is then monitored via balanced scorecards and IAG's Corporate Office facilitates the reviews on a quarterly basis.

These scorecards then translate into individual balanced score cards for each of our employees, which clearly links individual goals to corporate or divisional objectives.

We review our performance by looking at a suite of metrics, or key performance indicators across the economic, customer, workforce, community, and environmental perspectives. Being a diverse Group, there are challenges in gathering performance data that is relevant across all of our operations. Going forward and in the longer term, we will focus on better aligning the key performance metrics within this sustainability reporting process with those metrics included in the balanced scorecard.

Our performance in the current year (including five-year trend data where available) is presented in the data summary section of the sustainability area of this website.

We recognise that to continuously improve we need to review the indicators that we use to manage our business and then report on. This involves ongoing improvement and refinement of the indicators that we report including enhancing and strengthening the on-going monitoring processes and aligning the key performance indicators that we review in our balanced scorecard to those reported in our sustainability report.

External recognition and benchmarking

IAG participates in external benchmarking activities and sees this as a valuable way to capture feedback from a variety of stakeholders on what we are doing well and what we could do better. We are proud that we continue to be recognised externally for our commitment to business sustainability.

	Global 100 Most Sustainable Corporations IAG has been recognised in the 2011 Global 100 Most Sustainable Corporations in the World. The aim of the Global 100 list is to identify and recognise global corporations that have been proactive in managing environmental, social and governance issues. IAG was also recognised in 2006, 2007, 2008 and 2010.
	Dow Jones Sustainability Indexes This index tracks the economic, environmental and social performance of the leading sustainability driven companies worldwide. IAG has been ranked a global sector leader since 2006.
	FTSE4Good This index measures the performance of companies that meet globally recognized standards on corporate social responsibility. IAG has been a member of the FTSE4Good Index series since 2005.
	Carbon Disclosure Project IAG has been included in the Australia and New Zealand Goldman Sachs JBWere Climate Disclosure Leadership Index since 2008. This index constitutes companies demonstrating leadership in disclosure across a range of climate change issues relevant to investment.

While we are proud of these achievements, our focus remains on continuous improvement and ensuring the long term sustainability of our business.