Business review

Key performance indicators

We use a balanced scorecard, called the WINcard to measure our performance against key indicators. The WINcard is designed to ensure that we are meeting our objectives and delivering to our stakeholder groups:

• investors;
• guests; and
• our people.

We believe that by taking care of our people, they will take care of the guests and ensure that they have a great experience and want to return. This drives up sales and profits for our investors.

The WINcard is fundamental to the way in which we do business. It provides a common set of measures in every hotel, restaurant and coffee store and right through the organisation up to Board level. At each management board meeting, the relevant WINcard is reviewed and discussed. Appropriate actions are agreed to reverse any negative trends on the WINcard.

The WINcard is essential to the decision-making process and provides a key method of incentivising our people. The performance against these financial and non-financial measures determines levels of bonus at all levels of the organisation.

In 2008/09 the WINcard was made up of:

Investor measures

Brand expansion

This tracks the rate at which we are expanding our businesses.

ROCE growth

This measures the effectiveness of our capital expenditure decisions to ensure that we continue to spend our investors' money wisely.

Profit Growth

This is the measure that ultimately shows whether we are delivering the returns our investors are entitled to expect.

Guest measures

Brand standards

All our businesses are audited regularly against set criteria so that we keep delivering a consistently high standard of service.

Guest recommendation

We encourage our guests to provide feedback on their experience and measure their level of satisfaction.

Like for like sales growth

This measures changes in how much our guests spend with us on a comparable basis.

People measures

Team turnover

This measures how many people leave the business and indicates how happy and motivated our people are in their jobs.

Health and safety

This measures how well we look after both our people and our guests.

How does the WINcard work?

The WINcard uses a traffic light system to show, at a glance, how we are performing. Generally, red means that performance is worse than the previous year and below budget. Amber means that performance is better than the previous year, but still below budget. Green shows that the performance is better than the previous year and has met or exceeded budget. The results for 2008/09 are shown on the right.

The year ahead

The WINcard is about continuous improvement and setting realistic targets. Some new measures will be introduced for 2009/10 to reflect the current economic conditions and our commitment to corporate responsibility. The new corporate responsibility measures will not be bonusable in the first year.