APM London 9th July - Peter Horsted RPP FAPM MILT, Business Manager Royal Mail

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Presentation given by Peter Horsted of Royal Mail at The Strand Palace Hotel on Wednesday 9th July 2014. APM Event designed for Project & Programme Management (PPM) and Learning & Development professionals within our corporate membership, and other organisations with a strong interest in developing professional standards within their PPM community.

Transcript of APM London 9th July - Peter Horsted RPP FAPM MILT, Business Manager Royal Mail

  • Developing Professionalism Peter Horsted RPP FAPM Operations Strategy Business Manager
  • Agenda.. Where did we start o The Challenges along the way Where are we now o We continue to learn as we go The journey continues Summary Any burning questions but first, some context
  • # After 400 years of existence, Royal Mail continues to have a major presence across the UK and Europe... Our letters and parcels business - covering the one- price-goes-anywhere UK universal service Our pan-European parcels business employing over 14,500 employees across 42 countries Our growing UK based express parcels business, delivering around 150,000 parcels a day
  • # Our core UK operation* delivers 54m letters and 4m parcels to 29m addresses daily! We collect from 115,300 post boxes, 10,700 post offices and 79,700 business customers six- days-a-week We operate 24 hours a day using a network of around 40k vehicles, 56 flights and 11 trains Today, we employ around 137k people, operating out of 39 mail sortation centres, 8 regional distribution centres and 1,356 delivery offices
  • # By March 2010, the prospects for the company looked pretty bleak.. Group revenues were in decline, 120m less than 2009, due to the recession and the structural decline in our core volumes The IT network and capability represented a huge risk to business continuity Cash was flowing out, not in! 2% 213m The cost response was too slow, with the company unable to reduce costs at the same pace as revenues were falling. Unsustainable operating losses were the result 0% The network continued to lag behind other postal operators in terms of automation and efficiency. This required significant financial investment to address changing mix and falling volumes Our pension deficit had ballooned to over 9bn, with the pension trustee threatening tough action 9bn
  • # The Postal Services Act 2011 provided a level playing field.. Historic pension deficit to Government Private investment Post Office in public or mutual ownership New regulator and regulation
  • # Strategic Plan: To become the best delivery and marketing mail business in the UK. Providing everyone with a safe working environment Delivering what we promise to customers Offering robust products and contracts at the right price Modernising operations and cutting costs across all of the business Engaging our people Obtaining the freedom to compete Restructuring the balance sheet (pension and debt) Attracting private capital for investment Managing our reputation Building a new Union partnership Providing premier delivery services (parcel and letter) Developing media services Innovating to develop new services for businesses and consumers We need to and simultaneously to allow us to. Drive profitable growth Build a commercial future Be brilliant at the basics and generate sustainable positive cash flows
  • Final version Strictly confidential The Operations strategy will Reduce our cost base. Meet efficiency targets, deliver strong operational performance and increase flexibility. Achieve customer and service targets. Support transition to a future focused network Simplify & standardise methods, embed core standards, reduce performance variability and provide a platform for continuous improvement Embed Agenda for Growth and new ways of working. Drive collaborative behaviour to enable more flexible, faster and more efficient Royal Mail Make Royal Mail be easier to do business with, deliver enhanced customer experience and services, enable future commercial opportunities and support growth in Parcels revenues Embed culture change. Operations will look feel and act different.
  • # UK parcels market continues to grow Currently worth 5.8 billion a year Growth to continue as consumer shopping habits change Parcels account for nearly half the money we make as a Group Highly competitive, with multiple players
  • # Optimised collection routing Use of digital handheld devices Migration from bags to tray MAIL COLLECTIONS Optimised Network Optimised Vehicle Maintenance Enterprise systems such as SAP HR Track & Trace LOGISTICS & TECHNOLOGY State of the Art Automation Optimised Plant Capacity Address Interpretation Technology Standardised processes MAIL SORTATION Automation New Delivery Methods Digital handheld devices Improved customer experience MAIL DELIVERY The modernisation portfolio is extensive and covers every aspect of the operational pipeline. Modernising daily collections from 115k Boxes / 11k POs / 80k Businesses Reducing Mail Centre estate from 69 to 37 enabled by improved automation Modernising 1356 Delivery Offices and 66k Delivery routes serving 29m addresses Including maximising the efficiency of 40k vehicles, 56 daily flights and 11 trains
  • # We are over two thirds of the way through an investment programme to modernise our Mail Centre sortation network, closing 34 plants so far, 18 since March 2012. Key design principles: Safety: Safe ways of working with common standards Quality: Optimal locations meeting quality of service requirements and delivering standardised performance Efficiency Highly efficient, standardised layouts and cost: with modern automation equipment Reduced logistics and Mail Centre networks People: Right tools for the job and an enhanced working environment
  • # And achieving a visible change in the way we deliver mail, creating capacity and capability for parcels growth..
  • ...delivering seamless change on this scale, whilst maintaining a high quality business-as-usual service to the UK public every day Our single biggest challenge to date.
  • # Supporting the transformation through skilled resource and robust governance. Projects aligned to programmes Reporting into a centralised PMO with satellites Working to a standard governance model Supported by a strong leadership and engagement focus Enabled by a peak of over 1,000 internal programme, project and change leadership professionals plus multiple suppliers
  • # 3 2008 2009 2010 20122011 2013 2014 2015 COLLECTIONS Visibility & Tracking PROCESSING Materials Handling/Traying MC Rationalisation DELIVERY Collection Traying & Front end Phase 1 Flats Automation Walk Sequencing National Deployment LSM Replacement & Single Pass Sorting Traying retail wholesale Delivery Methods Deployment People Systems Programme RFID Install 300 DOs Collections best practice at 683 hubs. CFC upgrade and rationalise RFID to MPUs AI (MEARS) Service Centre Review Phase I reduction 157 to 97 Delivery revisions repeated to achieve top 10% goal Delivery Office reduction (1350 to c. 1270 by March 2013, thereafter through Delivery Design) NTK RevNTK Rev NTK Rev NTK Rev NTK Rev NTK Rev NTK Rev Parcels Sortation Automation Sorting LOGISTICS Mail Centre reduction 68 to 33 RDC Rationalisation PDAs WORLD CLASS MAIL Mail Centres & RDCs Delivery and all of rest of Collection/Logistics SYSTEMS (OPS) Customer product migration WCM On-going PDAs for Tracked Plus Collection revisions repeated to achieve top 10% goal WCM On-going The Core Period of Modernisation is 2010-2013 Parcels Automation Safety Industrial relations Improving customer interaction Deliver what we promise People engagemen t Automating mail processing Reduce delivery & collection costs New delivery methods Mail Centre efficiency World Class Mail Optimise networks and logistics Upgrade our IT estate Corporate Responsibility and Sustainability Reduce delivery & collection costs July 2014 Delivery Office Revisions PDAs on Collections Enterprise Intelligent Barcode Supply Chain Visibility
  • # Formal Qualification Road Map Professionalism = knowledge + experience + ethics + leadership Senior practitioner / expert Practitioner Foundation Capabilitylevel Many standards Some standards Few standards Prince 2 Competence = knowledge + experience Knowledge Assessment MSP
  • # Transaction Transformation
  • #
  • # 5 dimensions of professionalism A framework or methodology which defines the processes and practices for the organisation A competence framework to map levels of knowledge and experience at appropriate levels Qualifications to provide developmental opportunities and recognition of competence at appropriate levels A continuing professional development scheme that broadens horizons and builds understanding through sharing of good practice Recognition that true professionals should be accountable for their actions and adhere to a code of ethics and professional conduct
  • # Competence Framework
  • # Pr