TNT Express Czech Republic winner of National Quality Award Ing. Petr Chvatal Country General Manager
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1 TNT Express Czech Republic winner of National Quality Award 2005 Ing. Petr Chvatal Country General Manager
2 310 km Czech Republic in brief 480 km Liberec The Czech Republic was founded in 1993 when the Czech and Slovak nations agreed to separate. Karlovy Vary Plzen Usti Prague Central Bohemia South Bohemia Hradec Kralove Vysocina Pardubice South Moravia Olomouc Moravia Silesia Zlin Entered the EU in Total population is ~10.2m (2% of EU population) and size is 78k sq km (2% of EU territory). Legend: Austria 2005 Nominal GDP contribution ~24% 2005 Nominal GDP contribution between 8% and 11% 2005 Nominal GDP contribution between 4% and 7% TNT Express operates in Czech Republic for 15 years, employs 350 employees. Source: Accenture-TNT analysis,
3 Average revenue growth ( , %) Average ( 25m) TNT has been outperforming the market growth during Total market positioning on size & growth (%, m) 30% 20% 15% 10% 5% small with fast growth GLS DPD UPS FedEx Other Couriers TNT Czech Post large with fast growth Average (17%) DHL DHL is the biggest company on the market and has grown fast due to the acquisition of local transportation company in Overall, DHL Express growth is below market average. TNT is the most profitable company on the market and the fastest growing (excluding M&A) small with slow growth large with low growth 0% 0m 10m 20m 30m 40m 70m 80m Size = ROS % 2006 revenues ( m) Source: Accenture analysis, TNT internal analysis, companies auditing reports
4 Clients priority TNT can improve its competitive advantage by exceeding client expectations in flexibility and customer service Key Buyer Value mapping (2007) High Opportunities Customer service 4 Flexibility 2 3 Single point of contact 5 2 Value for money Interesting for TNT Need to have 1 Reliability The most important Key Buyer Values for clients are Reliability and Value for money, the Need to have values for TNT. Flexibility (rapid responsiveness of express provider on changing needs and specific requests of its clients) is the third most important Key Buyer Value for clients and an opportunity for TNT, Low Nice to have Low Source: 10 7 Pro-Activity One Stop Shop Clients evaluation - KBV of current providers 8 Coverage 6 Track & Trace Brand 9 Commodity High Customer service, followed by Single point of contact, are additional opportunities for TNT and symbolise the importance clients place on personalised, professional and solution-oriented communication with the express provider. TNT clients interviews spread across 6 express industries, TNT internal interviews, Accenture analysis
5 Our Strategic Principle People, quality, growth, profit! People Quality Profit Growth People who are: Produce quality: Enabling growth: Which delivers: Motivated Engaged Developed Competent Skilled Friendly Empowered FMR service Product value Fault free service Customer access Productivity Process efficiency Processes (all) EFQM Customer experience Higher engagement Increased loyalty Product growth Customer growth Regional growth Revenue growth EBIT growth EP growth ROS growth Cash growth Competitive advantage
6 "We are in an era in which the quality of their people is the distinguishing feature of successful organisations. People are the single sustainable source of competitive advantage. 1 Capability Competencies Investor In People Employee satisfaction Engagement ENABLERS 50% RESULTS 50% EFQM Award Deming Award Baldrige Award Leadership 10% 1 Sir Michael Bett, President - IPD People 9% Policy & Strategy 8% Partnerships & Resources 9% Processes 14% People Results 9% Customer Results 20% Society Results 6% INNOVATION AND LEARNING Key Performance Results 15%
7 The Challenge I. - To make sure people are motivated and engaged People are motivated when they are convinced of the correctness and the urgency of goals to the extent that they are eager to act, and keep acting, to reach those goals regardless of what others do or think. All employees have a legitimate expectation of fair and equal treatment. Company culture should support active and engaged employees. Competency management is a critical part of our HR strategy for growing a high performance workforce. Knowing what tasks employees are doing well and where they are weak is a key to our organization's success and to performance evaluations that are fair and meaningful to each individual.
8 Competency management is a critical part of our HR strategy TNT EXPRESS COMPETENCY FRAMEWORK Stream 1 Individual Contributors Stream 2 Team Leaders Supervisors Stream 3 Country Functional Managers/Directors Depot Managers Regional Depot Mgrs Stream 4 BU Functional Directors Country GM s Regional GM s EHO Functional Directors Stream 5 BU MD s Express Board Social Responsibility Leadership Business Development Strategic Awareness Strategic Orientation Change Management People Management Communication Managing Results Delighting Customers Creating and Sustaining Social Responsibility Teamwork Continuous Improvement Integrity 100% employees are measured and evaluated in the same way Training and development plans are clearly linked to business and personal objectives of employees
9 The Challenge II. Loyalty and engagement is a buy-in process. We could have done standards in a day, but nobody would have cared. Managers create a strategy, put it into practice, communicate it and expect that the impact of their activities will be in harmony with their expectations. But they cannot be sure what the reality truly is. If the reality is significantly different than they think and they are not aware of it, it could lead to unexpected results. An employee satisfaction survey is one of the ways, which allows us to find out, what our employees think about the level of cooperation, their benefits, communication and relationships in the workplace etc. Management expects not only an interesting final report, but the specific results too from the survey. The employees, if they invest their energy into fulfillment of questionnaires, also have their expectations.
10 Employees regularly assess management style of their supervisors and senior executives, employees express their opinion about clarity and quality of internal and external communication, employees can actively influence working environment Results of Management style survey regularly used during Performance appraisals of supervisors and managers 360 degree feedback implemented for all senior management Employee satisfaction survey once a year as a minimum. As a result of this survey an action plan addressing areas for improvement is communicated to all employees and regularly reviewed.
11 TNT is the most profitable company on the market and the organically fastest growing. To keep the leading position on the market we must continue to offer more flexible and personalised services than our competitors. Our service is as good, as are our people. 100% employees is invited to actively comment and influence the company. 92% employees take a part in satisfaction survey. 89% employees do not plan to leave the company in a course of next three years
12 Thank you. Ing.Petr Chvatal
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