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OBJECTIVES 2000/2001
JOHN ROBERTS
Chief Executive
Main Purpose of Role
As a leader of the Executive team, to motivate and enable them to achieve their
objectives which are derived from the overall business objectives. To ensure that the
culture matches the commercial assumptions of The Post Office, with speed of
decision making.
Key Objective
The key objective is to achieve and, if possible, exceed Government’s financial target
and the key numbers in the budget.
Group Budget £ millions (FY)
Sales 7959
Operating profit 241
Government profit target 261
(post-tax)
Dividend 104
Key Success Criteria
1. Return on shareholders funds 8.6%
2. Mails volume growth 3.4%
3. Package & Express key milestones : revenue £489m prime costs £333m
4. Mails productivity improvement 3.1%
5. Envision Break-even
Strategic Objectives
1. Implement the JV with TPG/Singapore Post by August 2000
2. Secure a controlling interest in General Parcel by January 2001
3. Produce and gain Board agreement to an initial Post Office E-commerce
strategy by July 2000.
4. Develop a strategy for a viable Post Office Network in the light of the PIU
report.
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Transformation / Big Issues
1.
2.
3.
4.
Produce high level contingency plans for exit Packages & Express (November
2000)
Ensure key IT projects (ESP, WAND, AI, SPICE, PMS, Horizon) meet their
2000-01 milestones as reported to POB quarterly.
Develop and have implemented a complete action plan for complaint handling
in The Post Office (March 2001 completed)
Ensure an acceptable first interim licence is negotiated with the Regulator
(March 2001)
Organisation and People
1.
2.
Lead a Post Office-wide communications programme designed to prepare for
competition, regulation and PLC status.
Lead the introduction of a reissued behavioural approach using Effective
Leadership Feedback techniques.
Process
1.
Ensure development of a major communications campaign, to be agreed by the
Board in July, to persuade staff of the need for further change to meeting
competition and regulation.
Continue to support, in line with PO values, through role modelling and
speeches, the anti-harassment and discrimination campaign now being run.
(On-going).
To produce for Board agreement a balanced scorecard approach to performance
review, linked to equivalent scorecards for the rest of the company. (July
2000).
Personal Development
1.
2.
Attend internal workshop courses on regulation.
Continue benchmarking visits / talks on E-commerce development.
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Objectives 1999/2000 - Full Year Performance
JOHN ROBERTS
Chief Executive
1. Budgets - these are the amended budgets after final changes and changed
approach to property charges agreed by the Board. All are pre-Horizon.
Group Budget £m FY £m
Sales 7647 7572
Pre-tax profit 525 423
Targets
RM profit 441 441
POCL profit 22 29
PF loss (13) (61)
RM volume 5.2% . 4.6%
Productivity Headline 3.8% 2.5%
improvement
Expenditure savings 68 125
POCL Conversions 2 offices 1 office + 4 in pipeline
Client negotiations
benefit 2 4.6
Parcelforce revenue +37m over 1998/99 +22m over 1998/99
Comment:
In a tough year, sales were up 8% year-on-year although short of budget.
Profit was down on last year and budget.
In the end, and with the help of changes between RM and PF due to
sampling errors on Special Delivery, RM hit its profit target, as did POCL.
The big problem area was PF - and to some extent Envision. Both have
been discussed by the Board and remedial - or exit ~ plans agreed.
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Strategic Objectives
1. To implement the proposals set in the White Paper, especially those relating
to investment freedoms, regulations and counters’ network.
Comment:
All key aspects are being developed in line with Post Office needs due to
good work by our Bill team, with escalation of issues to me and the
Chairman as appropriate. Achieved in full.
2. Conclude the first stage of the German/General Parcel strategy with
acquisitions at a cost of less than £200m. .*
Comment:
52% of General Parcel now controlled with all targeted acquisitions to
date achieved at or within Board authority levels. Total spend of
around £110m. Achieved in full.
3. Develop an international letters’ strategy, in light of the Board Awayday
discussion, to complement that for road parcels.
Comment:
This slipped 2 months and was taken by the Board, and approved, at its
May meeting.
Transforming/Big Issues:
1, Monitor and ensure the completion of the new Parcelforce hubs by
September 1999 for International and March 1999 for Domestic.
Comment:
Both hubs were working effectively by these specified timescales but
they have not yet achieved full capability due to delays to the
PMS/POISE system. Nevertheless, efficiency improvements and cost
savings are already being achieved.
2. Ensure the implementation of the RM Productivity Scheme to produce a net
benefit of £14m in 1999-2000.
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Comment:
Due to the completion of the Way Forward negotiations,
implementation is slower than RM hoped with a cost of £1.2m within
the Service Delivery Business Plan. Next year will see a net benefit of
£35.9m.
Organisation and People Issues
1. Complete and deliver a commercial Strategic Plan by June 1999.
Comment:
Completed to time. Agreed by Government in November.
2. Complete the implementation of SCS by April 2000, ensuring that the Post
Office is fully functioning with its new structures.
Comment:
Completed. The last 2 units, Packages & Express and Logistics went
live in March. -
3. Ensure that a new implementation plan for an agreed Horizon option is set
in place or, in the event of Horizon’s cancellation, handle this at minimum
cost to the Post Office.
Comment:
Agreed plan in place. Contract terms with ICL improved. Over 5000
offices implemented. All revised milestones for 1999-00 achieved.
4, Set the correct commercial behaviours for all managers under SCS, ensure
effective development mechanisms are in place and role model the new
approaches.
Comment:
On-going. Training and enrolment events completed for all new
Groups. Management approaches set out in detail. Changes to
Executive Board behaviour being tracked by external consultant (Mark
Goodridge).
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5. Ensure the continued improvement of the management developments and
succession planning process.
Comment:
Being done. Next paper due to the Board in early 2000.
6. Build on the improved relationship with the CWU, particularly in the
delivery of a new ‘Way of Working’ agreement in RM.
Comment:
Relationship continues to improve at National level building on strategic
partnership. Way of Working delivered. Regular meetings held with
General Secretaries.
Personal Development
1. External discussions to improve understanding of Regulation.
Comment:
Discussions with Rothschilds, Oxera, and in-house regulation team.
2. Short benchmarking trip to selected [T/commercial companies in the US to
understand their approach to e-Commerce/Home Shopping and the
development.
Comment:
Completed 12-15 December with IBM, Cisco and HP. Aided thinking
considerably on approach to big IT projects, SAP and E-Commerce.
JOHN ROBERTS
Chief Executive
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