Key Performance Indicators - 2012

The four quadrants below (People; Customer; Performance and Financial) and their respective KPIs reflect our Corporate Balanced Scorecard for the year 2011-12. As the business changes, we may adapt our KPIs in future years to reflect changing priorities.

KPI Measured by Key activities in the year
People    
Safety Number of RIDDORs1 per 1,000 people in the UK businesses Our Zero Accidents Programme, focusing on road safety risks, and our basic programmes on slips, trips and falls, continue to drive down the rate of accidents across our businesses.
Engagement An annual survey measuring what our people think about
Royal Mail, including leadership and strategic direction.		 Following a benchmark survey in Autumn 2011, our inaugural
survey took place in Spring 2012, with a 69 per cent response rate.
Customer focus An annual survey measuring how focused our people are on delivering for our customers. Following a benchmark survey in Autumn 2011, our inaugural survey took place in Spring 2012, with a 69 per cent response rate.
Customer    
First Class Quality of
Service 		 Quality of Service for First Class retail products, including force majeure2 adjustment. As part of one of the most comprehensive change programmes ever undertaken in the UK, delivery revisions have taken place in 331 delivery offices across the UK. This is about a more efficient and effective Royal Mail.
Net customer satisfaction Customer satisfaction scores on a number of issues, including price, service quality and customer experience. A customer satisfaction questionnaire is completed by approximately 700 business customers per month, helping us to identify key areas for action.
Customer complaints Number of complaints captured by our Customer Service team3.  We continue to take action to focus on redelivery, misdelivery, ‘Something for You’ cards and redirections, with considerable progress in redirections and redeliveries.
Performance    
Group revenue  Group revenues. Price increases were implemented across the business, including an eight per cent increase for letters in April and May 2011.  Traditional letter volumes declined by six per cent during the year, while UKPIL domestic parcel volumes increased by six per cent in the same period. 
Delivery hours reduction Percentage year-on-year reduction in the gross hours spent on delivery activities. Delivery revisions were completed in 331 delivery offices during the year, reducing the gross hours spent delivering mail.
Process sequencing Percentage of our mail sequenced into delivery order for our
postmen and women. 		 235 new, refurbished or upgraded processing machines were installed during the year. 
Financial    
Operating costs Expenditure before modernisation and other exceptional costs for our UK businesses. We continued our modernisation programme in our frontline operations and completed the reorganisation of Group central functions.
Group operating profit Group operating profit before exceptional items. An increase in Group operating profit was generated by necessary price rises and cost reductions.
Free cashflow Free cashflow excluding Royal Mail Pension Plan (RMPP) deficit payments and finance leases. We focused on delivering the RMPP transfer, the sale of non core activities and properties, and working capital management.

 

1 Reporting of Injuries, Disease and Dangerous Occurrences Regulations.

2 This accounts for the impact of factors which are beyond Royal Mail's control, such as floods or the Icelandic volcanic eruptions.

3 We also provide detailed annual disclosure on customer complaints to our regulator, which is publicly available.