ACC303: Integrated Reporting and Strategic Management Analysis

This report provides a comprehensive analysis of integrated reporting and strategic management, with a specific focus on the Lendlease Group. The report begins with an executive summary that highlights the importance of integrated reporting in presenting a clear picture of a company's performance to stakeholders. The report then delves into the challenges and issues Lendlease faces when implementing integrated reporting and strategic management, including the costs of adoption, knowledge gaps, and the time-consuming nature of gathering information. The discussion also covers how Lendlease tackles these issues, such as by improving market understanding of the method of various capital and improving the decision-making process. Furthermore, the report examines issues related to the implementation of strategic management within Lendlease, such as ineffective training, weak strategies, miscommunication, and limited resources. The report concludes by emphasizing the importance of integrated reporting and strategic management for effective corporate governance and sustainable value creation. The provided solution is a student assignment available on Desklib, a platform offering AI-based study tools.

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Executive Summary
Every organization should focus on improving the structure of their annual report so that
stakeholder could understand the performance of the company efficiently. Integrated
Reporting framework helps to present the annual report in such a way that it consists of the
information from every department of the organization, and it is more understandable as well.
Strategic Management, on the other hand, helps every organization to plan and achieve their
goal systematically. However, there are many challenges and issues which are still related to
these concepts. This project has focused few of such problems in details faced by one of a
major company in Australia “Lendlease”. Few solutions and strong points of the Group
related to these issues are also highlighted in the project.

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TABLE OF CONTENTS
1.1 Introduction..........................................................................................................................3
1.2 Discussion............................................................................................................................3
1.2.1 The issues and challenges that are faced by Lendlease Group while they apply the
Integrated Reporting method for their annual report.............................................................3
1.2.2 Different issues tackled during the implementation of integrated reporting by
Lendlease Group....................................................................................................................4
1.2.3 The issues which are related to the implementation of Strategic Management faced
by Lendlease Group...............................................................................................................8
1.2.4 The issues regarding strategic management by Lendlease should be avoided...........10
1.3 Conclusion..........................................................................................................................10

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1.1 Introduction
Integrated reporting and strategic management of any financial as well as non-
financial organization present the annual report in a simple way to the stakeholders so that the
report is understandable. Integrated reporting adopted by many organizations in Australia
also includes the strategic management method alongside (Lendlease.com 2020). Strategic
management is the method of continually being updated with the current need of the
organization and customizing the operations accordingly, which involves planning then
monitoring and followed by analyzing the goal with the proposed strategies. This report
shows the challenging sides of adopting and implementing the integrated reporting and
strategic management by Lendlease Group. Lendlease is one of the big firms listed in the
Australian Securities Exchange. The discussion of this report also states the general issues
regarding why integrated reporting, as well as strategic management, is yet not adopted by
many other companies in Australia why the manager of those companies do not feel the urge
of taking or implementing the techniques into the management and operational system.
1.2 Discussion
1.2.1 Some common issues and challenges that are faced by Lendlease Group
while they apply the Integrated Reporting method for their annual report
Cost of adoption, the managers of the organization face a lot of challenges while
considering all the materiality, essential information and accountability by maintaining the
budget. Considering all the facts increases the cost of the reporting style and results in vast
input of investment (Aicd.companydirectors.com.au 2020). Knowledge of information by the
organization is challenging to estimate whether the information about the group is enough for
the reporting style or not. Good knowledge regarding the integrated reporting is essential for
the managers to measure whether the information gathered is relevant to the reporting or not

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and whether the information is enough to be reported on the annual report or not
(Assets.kpmg 2020). Time is taken for gathering all the information for the report can be
quite a time consuming and also the quality and the materiality of the information should
remain unbiased so that the genuine and raw information delivered to the stakeholders
(Australian Financial Review 2020).
Many companies in Australia use the traditional way of reporting, and they are still
using the conventional form of reporting, which is sustainability reporting method. It noted
that the stakeholders of those company do no complain about the fat of using the traditional
method of reporting. So, Lendlease faces the challenge to compare their updated way of
reporting with the conventional way (Bouten and Hoozée 2015). Increment in the workload
for the managers has increased due to the reporting style. Integrated reporting involves all the
genuine and raw information of all the departments of the group to analyze the integrated
profit of the company (Busco et al. 2013).
1.2.2 Different issues tackled during the implementation of integrated reporting
by Lendlease Group
1. The approach of multiple capitals
Improving the market understanding for the method of the various capital,
Lendlease has covered all there six capitals which mentioned in the Framework (Cheng et
al. 2014). Help report in Lendlease, there are experts available to prepare help report who
can access the relationship between human, intellectual and social. The relationship
capital of the organization metrics so that they suit the unique circumstance of the
organization (Frynas, and Mellahi 2015). The Lendlease Group ensures to execute some
meaningful and leading practices examples, which reflects the productive integration of
all the capitals of the organization.

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Being updated with the current IIRC guidelines, the Lendlease makes sure that
they stay updated with the current IIRC guidelines on all the capitals so that they always
remain potential and make changes or reissue their organization policies accordingly.
2. The process of integrity with connectivity
Improving the decision-making process, Lendlease Group research about the
relationship of decision making with the connectivity of the information (Accaglobal.com
2020). Communicating with others by Lendlease Group communicates well with all the
other reporting developments of other corporates who can support or connect to the
organized, integrated report.
They are promoting practices by this organization. Promotion of their practical
examples reflects the effective connectivity of the information of the organization.
Improving the market understanding, Lendlease Group uses the technique of clarifying
their IIRC’s interpretation regarding the integrated reporting which ultimately enhances
their market understanding and keeps them updated with the current need of the operation
and management.
3. Maintaining the legitimate interests and the needs of the stakeholder’s of the
organization
Understanding the market by the report preparers of Lendlease Group at first
understands their market purpose as well as the audience for developing a better-
integrated report (Steyn 2014). The Group generally follows the rules stated in the
guiding principle to maintain a good relationship with the stakeholders. These guidelines
help to resolve the understanding of the relationship. The preparers of the help report of
Lendlease are allowed to access the innovative examples which disclose the legal
demands of the stakeholders.

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4. Value creation and materiality
Understanding the concepts, the preparers of the help report of Lendlease
understands well about the value-creating ideas which are there in the Framework. The
managers of Lendlease are capable of addressing the mixed arguments to understand the
different types of materiality needed for various reports.
Suit different forms of reports, the manager work with the materiality approach of
Framework and the preparers of help report look into different materiality so that both
suits the various types of report. The similarity between materiality; the manager
maximizes the similarity of the materiality approach of this Framework with other
Frameworks. The report preparers of the Group share their practical examples regarding
the determination of materiality.
5. Conciseness
The managers of this Group clarifies the expectations with IIRC regarding brevity.
The examples related to integrated reports are promoted.
6. Business model
The report preparers find the relationship between the value creation, outcomes
and capital and differentiate between outcome and output. The Lendlease Group can
communicate better with the different business model. Involvement of issues which are
identified by Framework and charged with governance. The reports will increased, which
includes the charges with management. The report preparers analyses and then elevate
those statements which contain government charges and then prepares the integrated
report.
7. Other guiding principles

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The guiding principles of this integrated reporting are followed by the Lendlease
Group, which helps them for long term reporting as well as thinking. The report preparers
of the Group are well aware of the significance that holds in the balance of the integrated
reporting. The Group promotes alignment with the reporting framework.
8. Content element
Disclosing vital information; the Group explains all the importance of communicating
the information regarding the market positioning and competitive landscape and then
provides practical examples. The Group delivers practical examples while they disclose
the information regarding the importance of opportunities. Organization support for
creating value; the Group explains the importance of an organization’s governance
support regarding the importance of the ability to create value along with providing
practical examples.
9. Other quality issues
Assessing the opportunities for improvement; the Group allows the other
organizations to evaluate the Framework, which is attached to their integrated report so
that the prospects of growth can be identified. Promoting the credibility contribution; the
Group promotes their participation of credibility as well as their trust in the integrated
reports. The current feedback from the market is provided to those who are training of the
integrated reporting so that they gain knowledge regarding the market for that report.
10. Enablers, barriers and incentives
Simplification; the report preparers of the Group are allowed to guide and share
practical examples in a simple way so that the stakeholders and other organizations
understand it easily. The Group takes care of the increased demand for integrated

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reporting by the financial capital providers. The Group promotes the demand and makes
of the demand completely to restrain the relationship with the capital providers.
Promoting the reporting style; Lendlease Group supports the integrated
reporting style so that the other organization also gets motivated by the benefits of this
reporting format. Supporting the different growth organizations; the Group also
promotes the growth of all the other public sector, SMEs and the non-profit
organization who are willingly using the integrated reporting format and getting
benefit from the use.
Encouraging the integrated reporting method; the Group engages themselves
with the policymaker as well as with others so that the regulatory environment keeps
on promoting the integrated reporting to flourish. Helping the newcomers; the
managers of Lendlease also helps those who are newly adopting the integrated
reporting framework to their organization and introduce the benefits of the structure to
the newbies. Understanding the reporting better fit; the report preparers of the Group
understands it better as what is better for preparing their integrated report and what is
not.
1.2.3 The issues which are related to the implementation of Strategic
Management faced by Lendlease Group
Lendlease is a big company which plans and modifies their goal according to market
demand and position. But, even after developing a strategic plan with the help of the format
under strategic management, the managers still face some issues, and some of them are
unavoidable (Ansoff et al. 2018). The following are the issues:
 Ineffective training: every corporate body needs to train there every employee so
that the productivity of the employee increases with time. Finding the proper

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training method is difficult because, in this technologically advanced era, the
training technologies are improving day by day, and the competitors in the market
are well aware of the new technologies. Adopting new technology initially can
involve high cost also existing employees may find it difficult to access and may
restrict to take the training. Challenge Based Development is one kind of training
exam developed for the employees as their training process (Galliers, and Leidner
2014).
 Weak strategy: strategy is developed by the companies to achieve the goal.
Whereas in this frequent changing market demand, the organizations should not
plan any ineffective strategy because that may result in a delay in achieving the
goal.
 Miscommunication: proper implementation of any strategy also involves adequate
communication between the employee and the employer. In an organization, it is
possible to have conflicts which may lead to miscommunication. It is essential to
avoid the conflict so that the training process conducted smoothly. The managers
should follow up the proper strategic management process, which will help to
remove miscommunication.
 Limited resource: direct as well as an indirect resource is needed for any
organization to have productivity throughout the year. The strategic management
can help to plan resources properly, but a sudden increase in the demand can
cause a lack of resource in the organization (Rothaermel 2017).
 Maintaining the strategy thoroughly: after developing a plan, the organization
must follow up with the strategy to achieve the proposed gal thoroughly. It is seen
that initially, the strategy followed, but as time goes, the follow-up initiative

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decreases as the market is diverse and changing day by day (Strategic
Management Challenges – A Primer 2020).
1.2.4 The issues regarding strategic management by Lendlease should be avoided
Lendlease tries to follow their plans developed under the strategic management
framework strictly. The strategies are aligned and reviewed against the relevance of the new
strategy (Skyword 2020). The budget to apply the strategy is analyzed along with the
performance measurement. So that the updated strategy is used thoroughly and the impact is
huge upon the employees of the Group. It is essential to involve incentives in every new
strategy so that the interest of the employees remains unchanged or rather, it increases. The
structure of the strategy also changes accordingly so that the adoption of the strategy is easy
for the employees (Top 3 Strategic Problems and How to Address Them 2020)
1.3 Conclusion
From the above discussion, it can be concluded that the issues of Lendlease regarding
integrated reporting and strategic management are quite similar to the other organizations
who also have adopted the frameworks. The problems regarding the integrated reporting can
be solved by following some simple steps like obeying the guidelines of the integrated
reporting thoroughly. However, the stakeholders of the organizations who have not adopted
the integrated reporting method have not reported any complaints, which ultimately decreases
the development and demand of the reporting style. The issues regarding strategic
management have also detected from the Lendlease Group annual report which shows that
even after considering all the facts thoroughly, some problems cannot be entirely avoided as
it related with the fluctuating market demand which cannot be controlled.

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