Board Evaluation - Halfords Group plc

A formal Board effectiveness review is conducted on an annual basis. This includes an assessment of the Board, its Committees and individual Directors.

FY23

External Evaluation

FY24

Internal Evaluation

FY25

Internal Evaluation

FY24 Evaluation Process

Step One

Online surveys issues to the Board members.

Step Two

Received and analysed the feedback with the Chair of the Board. The Chair produced a note of action points to be addressed, which was circulated to the Board members.

Step Three

The Chair of each Board Committee received the evaluation report in relation to their Committee, and time was arranged to consider the findings and agree an action plan.

Step Four

Implementation and monitoring of the action plans.

FY23 findings

The findings identified by the FY23 external review are as follows:

Topic	FY23 Outcomes	Progress Made in FY24
Delivery of Capital Markets Day (“CMD”) targets	Development of a shorter scorecard to consider delivery of CMD targets.	During the year, new Board reporting was implemented, providing a succinct summary of progress towards the targets set at the CMD.
People and culture focus	A focus on people and culture, to ensure the health and wellbeing of colleagues, and to concentrate on recruitment, turnover and succession to Board and management.	The business conducts a Colleague Engagement Survey and in pulse surveys on specific issues throughout the year. These surveys enable us to monitor people issues and to understand the cultural matters affecting the business. In addition, work is being carried out to address issues relating to recruitment and retention at all levels.
Understand our customers	To spend more time understanding our customers and progress our successes to build our knowledge base and how this can be used to meet customers’ needs.	In FY24 we have established the Customer Panel, ‘The Inside Track’, a key insight tool, growing membership to 10,000 customers and successfully testing and gaining feedback to help build and improve new and existing proposition. We are also leveraging wider data and knowledge around our customer experience, and were able to improve NPS a further 0.7 points from 64.8 to 65.5 in the year. In addition, we continued along the trajectory on the Halfords Motoring Club, doubling our membership to 3.4m members, and achieving an 8% Premium membership mix.
Board meetings	To hold more Board meetings in person at the Support Centre in Redditch.	More Board meetings in person at the Support Centre were held during FY24 than in previous years. Board meetings were also held in person in London.

FY24 findings

The findings identified by the FY24 internal review were as follows:

Topic	FY24 Outcomes
Understanding the business	Given the significant recent M&A transactions which have helped to transform the business, the Directors are aware of the need to understand fully the products offered by the whole group and how each division interacts with others. To ensure the Board is on top of all the demands of the business in FY25, the Directors will increase their visits to the business locations, operations and also to the Support Centre. This will ensure that the Directors are able to fully consider the opportunities, the risks involved, and any mitigating actions required.
Business landscape / external perspective	The governance landscape needs to be monitored carefully and we continue to closely monitor the markets in which we operate, to ensure our product offerings remain relevant.
Health and safety	Following changes within the business, with more garage services now being offered, the Board is aware of the need to continue, and develop even further, the Group’s investment in health and safety matters to ensure risks are fully identified and mitigated accordingly.