Measuring performance

Group performance is measured through Key Performance Indicators (KPIs), in the context of our strategy.

The 2016-17 Corporate Balanced Scorecard has been simplifed this year to include 10 equal measures, all weighted at 10 per cent. The 10 measures alongside the relevant key performance indicators (KPIs) are set out below.

KPI and strategic link(s) Measured by Key activities and achievements in the year Performance against target
Reduction in road traffic collisions (%) Reduction in road traffic collisions per 1,000 vehicles1.
  • This year, we reduced our reported road traffic collisions by 12.3 per cent
  • Maintained our Lost Time Accident Frequency Rate (LTAFR) of 0.49

2016-17 (Actual): 12.3%

2015-16: not a KPI

2014-15: not a KPI

Employee engagement (score) Average score from the Ipsos MORI annual employee opinion survey measuring involvement, alignment and loyalty of colleagues through a number of employeee ngagement questions. 
  • We maintained our employee engagement score of 57
  • Engaged more than 70,000 colleagues in the Big Conversation
  • Over 10,000 participated in our Operations Fundraising Challenge

2016-17 (Actual): 57

2015-16: 57 (above target)

2014-15: 56 (above target)

 

First Class Retail Quality of Service (%) An independent, audited measure of Quality of Service for First Class retail products delivered by the next working day, which may be adjusted for force majeure2.
  • We exceeded the 93.0 per cent First Class mail target
  • Exceeded the 98.5 per cent Second Class mail target

2016-17 (Actual): 93.2%

2015-16: 92.6% (threshold)

2014-15: 93.1% (above target)

Mean business customer satisfaction (score) Results from the customer satisfaction survey completed by business customers.
  • We improved our levels of satisfaction amongst our business customers
  • Improvements in first time delivery rates through Delivery to Neighbour, Safe Place and Work Time Listening and Learning sessions

2016-17 (Actual): 78

2015-16: 76 (above threshold)

2014-15: 76 (stretch)

Customer complaints ('000) Number of complaints (not claims) opened by our Customer Service team.
  • There was an overall increase in complaints in 2016-17, driven principally by the growth in tracked parcels
  • We achieved a reduction in two out of our five major categories (redirections and misdeliveries)

2016-17 (Actual): 517

2015-16: 476 (below threshold)

2014-15: 453 (above target)

Productivity for collections, processing and delivery (%)  Percentage change year-on-year in the number of weighted items per gross hour paid in Delivery Units and Mail Centre Units (delivery and processing, including regional logistics and collections) and Regional Distribution Centres. 
  • An improvement in productivity was achieved through a reduction in frontline hours despite an increase in workload

2016-17 (Actual): 2.7%

2015-16: 2.4% (above target)

2014-15: 2.5% (above target)

UKPIL costs (£m)3,4 Adjusted operating costs for UKPIL. 
  • Total UKPIL costs reduced by one per cent

2016-17 (Actual): £7,082m

2015-16: not a KPI

2014-15: not a KPI

Group revenue (£m) Group revenue adjusted for budgeted foreign exchange rate and the impact of GLS acquistitions. 
  • Group revenue was up one per cent
  • Revenue growth in GLS more than offset a decline in UKPIL revenue

2016-17 (Actual): £9,455m

2015-16: £9,191m5 (above target)

2014-15: £9,556m5 (above threshold)

Group operating profit before transformation costs (£m) Adjusted Group operating profit before transformation costs, adjusted for budgeted foreign exchange rate and the impact of GLS acquistitions. 
  • Adjusted Group operating profit before transformation costs decreased

2016-17 (Actual): £701m

2015-16: £738m(above target)

2014-15: £620m5 (target)

In-year trading cash flow (£m)  In-year trading cash flow before cash flows relating to London development property portfolio. 
  • In-year trading cash flow was £420 million

2016-17 (Actual): £420m

2015-16: not a KPI

2014-15: not a KPI

 

 

 

1 Added to Corporate Balanced Scorecard in 2016-17.

2 This accounts for the impact of factors which are beyond Royal Mail’s control, such as weather.

3 Added to Corporate Balanced Scorecard in 2016-17.

4 Reported results are adjusted to refect a constant foreign exchange rate of £1/€1.3 in GLS. Adjustments are also made to remove the impact of GLS acquisitions in the year and the underlying inpact of weaker £ Sterling in UKPIL.

5 Prior year results are on a reported basis, adjusted for budgeted foreign exchange rate