KPIs
We use a balanced scorecard, called the WINcard to measure our performance against key indicators.
Whitbread in numbers
The WINcard is our unique balanced scorecard. It drives high performance and maps our progress against the Whitbread Way Forward. Every leader in the business from the management teams in our Costa stores, restaurants and Premier Inns, to the Chief Executive has a WINcard which is relevant to their role and level of contribution. All team members in Whitbread can see their achievements and progress on a monthly basis wherever they work. The WINcard measures our performance around our key stakeholders: our customers, our people, our shareholders and a more recent stakeholder addition, our community which is better known as our 'Good Together' strategy. The WINcard aligns our day-to-day activities to the overall vision and strategy of the Company and helps us to measure our progress.
The WINcard has enabled a performance culture to thrive across all levels of the organisation and mobilises our people to act around shared goals. The WINcard measures are used as key indicators in personal development planning, for recognising excellent performance, in coaching and performance management, supporting talent management and succession planning. It is a core component of our incentive framework at all levels.
The WINcard educates, motivates and engages our leaders and teams across the business to focus, prioritise and deliver what is required to achieve success.
WINcard results in 2009/10
The measures on the WINcard were updated in 2009/10 to include central costs and cash. The new measures replaced ROCE growth and brand expansion. These changes were made to reflect the Group's new priorities in light of the general economic conditions.
During the year, Whitbread achieved an 'all green' WINcard at Group level. This is an excellent result and means that we met or exceeded our targets on all key measures. Information on our achievements during the year and on our targets for the year ahead are set out in the table opposite. In addition, you can read the WINcard results for Hotels and Restaurants and Costa.
Changes for the year ahead
We have given careful consideration as to what the appropriate indicators should be going forward and to the setting of targets for the year ahead.
A fundamental change of approach made following consultation with the Remuneration Committee was that the WINcard should have a longer-term perspective and should not be set with just the year ahead in mind. As such, provisional targets have been established for each of the WINcard measures for the next five years, with the overriding principle being one of continuous improvement. The targets for 2010/11 are simply the first step. Targets will still be set annually, but with a longer-term perspective.
Health and safety has been a key measure on the WINcard since it was first established, and continues to be so. However, rather than being included simply as a bonusable measure, health and safety is now a hurdle and 20% of the total WINcard bonus payable will be lost if health and safety targets are not met. This further demonstrates the importance of health and safety to Whitbread and our ongoing commitment to looking after the welfare of our customers and employees.
As detailed in the Corporate Responsibility section, we have launched Good Together during the year. For 2010/11 we have added a new measure at Group level of electricity and carbon reduction. We have also replaced the team turnover measure with team engagement, which is described in more detail in the Our People section. Another new measure is Premier Inn market performance, which measures Premier Inn's RevPAR against the budget hotel sector.
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Achievements in 2009/10 | Targets for 2010/11 |
| Investor measures | |||
|---|---|---|---|
| Central costs |  |
Achieved £20 million of cost efficiencies. | Not a WINcard measure in 2010/11 but a further annual saving of £5 million is targeted. |
| Cash | |
Positive cash flow of £109.7 million, exceeding cash neutrality target. | Cash neutrality. |
| Profit | |
Underlying profit ahead of budget at £239.1 million. | Improved profit performance. |
| Premier Inn market performance* |
|
Premier Inn outperformed the budget hotel sector on RevPAR. | This will be a new measure on the WINcard requiring continued outperformance. |
| Customer measures | |||
| Like-for-like sales growth | |
Group like for like sales down by 0.6%. A good result in light of the general economic conditions. | Improved like for like sales growth. |
| Brand standards | |
Both businesses achieved a green rating in 2009/10. At Group level, the measure is a combination of the brand standards scores for both Costa and WHR. | The audit benchmark has been raised for both businesses. |
| Customer recommend | |
Targets exceeded in Costa and Restaurants. Premier Inn improved on the previous year, but did not reach the tough target and achieved an amber rating. At Group level, the combined results produced a green rating. | The target in all businesses has been increased for the year ahead. |
| People measures | |||
| Health and safety | |
The Group and each of the businesses met health and safety targets. The health and safety audit had been made tougher, so this was an excellent result. | The health and safety audit benchmark has been raised for all businesses. |
| Team turnover | |
Team turnover across Whitbread in 2009/10 was 40.1%, compared to 49.0% in the prior year. | Continued improvement in retention. |
| Team engagement* |
|
The team engagement score across the Group, as obtained from the YOUR SAY survey, was 60.0%, outperforming the UK norm. | Improved team engagement result. |
| Good together | |||
| Electricity/carbon reduction* |
|
This was not a WINcard measure in 2009/10. | Decrease in consumption relative to sales. |
The WINcard
Performance significantly below budget
Performance marginally below budget
Performance has met or exceeded the budget
* Note: measures in the table above without a result were not 2009/10 measures, but will be in 2010/11