- Be brilliant at the basics
- Build a commercial future
- Drive profitable growth
Be brilliant at the basics
The top priority is to stay safe at all times.
We must deliver what we promise our customers and hit our Quality of Service targets.
We have to offer customers the right products and at the right price in a changing and competitive market.
Modernising our operations is crucial to achieving efficiency savings. Letters automation is in place. Now we need to successfully introduce all our delivery revisions consistently and to the right standard. We must get a good return on the money we have invested in modernisation.
The World Class Mail programme is helping us to make these major improvements, driving up safety, customer service, quality and productivity.
We need to invest in our IT systems which are outdated and don’t do the job we need them to.
Build a commercial future
The second part of our strategy involves fixing our finances and attracting private capital.
Our historic pension deficit has been a major burden for some time. Without the Government taking on most of the liabilities, the company would soon have run out of the cash it needs to keep going. Our financial health is now much stronger.
Our regulator, Ofcom, has announced a major new approach to regulation. It has clearly said our financial position put the viability of the Universal Service at severe risk.
We asked to be treated like any other company so we could compete on a level playing field with other companies. Now, in most cases, we will be. But, we now need to take advantage of our new freedoms to compete effectively.
The pension solution and the new regulatory framework will make a significant difference to our financial position. But, we still have some way to go to fix our finances.
Drive profitable growth
The third part of our strategy is to drive profitable growth. We expect letter volumes to continue declining by 5% for the foreseeable future. But, we are a £3.5 billion packets and parcels business. And within letters we have a media business which we can also grow, particularly advertising through, for example, our Door to Door service, pictured.
With the right investment and technology we can grow these businesses and increase profits.
But, we will only take full advantage if we deliver the level of service we promise our customers.