directors report and accounts 2006 - Our strategy in action: Winning organisation


 Our strategy in action: Winning organisation

Lost Workday Case Incident Rate (LWCIR)

British American Tobacco will be a winning organisation when it is recognised by its employees as being a great place to work, where outstanding people are attracted, challenged and have the opportunity to grow.

Creating a safe place to work has to be our primary consideration for employees. We measure and track performance using a measure of the Lost Workday Case Incident Rate (LWCIR).

Over recent years, the rate has been reducing, although the acquisition of ETI in Italy in late 2003 had a negative effect on safety performance in 2004. As British American Tobacco’s standards for safety were adopted, performance in Italy has improved. In 2006, we aimed to achieve a further 10 per cent reduction to a rate of 0.44. In fact, the rate fell to 0.42 from 0.49. Positive as this trend is, we continue to aspire to achieve a rate of 0.1-0.2, considered to be a best practice standard for comparable multinational organisations.

We are committed to providing a work environment that is free from harassment, bullying and discrimination. There is no discrimination against people with disabilities who apply to join the Group and those with a disability are afforded the same opportunities for promotion, training and career development as other staff. Our Employment Principles are available to all staff on the Group’s intranet.

The Group continues to encourage employee ownership through its provision of employee share plans, including the Partnership Share Scheme and the Share Reward Scheme.

In addition to the global survey (see below), we encourage employee engagement through individual discussions, team briefings, local surveys, publications and regular meetings with recognised employee representatives. See chart See chart 9

Click here to view the Lost Workday Case Incident Rate (LWCIR) data 

Employee opinion
The extent to which our employees, at every level of the business, feel engaged and committed to delivering superior results is key to delivering our leadership vision.

The most authentic way to measure progress is to collect views from employees themselves. The best judge (and indeed the best influencer) of the extent to which we are making tangible progress in what underpins our Winning Organisation strategy has to be our employees, at every level and in every part of the business. We therefore work to create an environment where employees feel that they can speak honestly about their company and the issues of importance to them, placing emphasis on the role of employee opinion research.

Our international employee opinion survey, ‘Your Voice’, is run by ISR (International Survey Research), a leading global employee research organisation, to gather detailed views from employees to enable regional, functional and local action planning. Your Voice was conducted as a global census for the first time in October 2005, in over 70 markets, followed by a further census in November 2006, capturing the feedback from over 38,000 employees. The survey covers all levels of employees and will now be run at two yearly intervals.

To establish how employee opinion within British American Tobacco compares with other organisations, our global employee opinion survey data is compared with ISR’s global FMCG companies norm.

Many of these companies (e.g. Diageo, Nestlé, Coca-Cola and Unilever) also appear in the peer group of FMCG companies used to assess our performance in the Long Term Incentive Plan (LTIP) - see Summary Remuneration Report

2006 survey results
The overall response rate for the survey in 2006 improved over the previous year to reach 89 per cent.

In all of the 15 categories in the 2006 survey, employee opinion in British American Tobacco is significantly more positive than in the FMCGs benchmarked by ISR.

There were also significant improvements in most of the categories compared to the previous survey.

Your Voice survey 2006 

Using the survey results
Of course, it is positive for us to know that our employees, for example, understand our global vision and are proud to be associated with the Company, but how can the survey be used to improve performance?

ISR research shows that employee attitudes about leading indicators (e.g. strategic direction, leadership, talent, customer focus) tend to be significantly more favourable in high performing organisations. The lagging indicators (e.g. morale, efficiency, commitment) tend to follow naturally. As the leading indicators tend to be the key drivers of improved organisational performance, we concentrate our efforts on these particular areas.

A number of the indicators (e.g. strategic direction, morale) are drawn from a range of the categories shown in Chart 10 and do not correspond directly to a single category heading.

We are performing well in terms of many of the leading indicators, including strategic direction and customer focus. In response to scores that were less positive, we have committed to put more focus on leading indicators such as leadership and talent. Recent actions include setting clear targets for local representation on top teams and in succession plans.

The survey results are used at global, regional, local and functional levels, while the learning from companies with good results is captured and shared around the Group.

The survey results also provide detailed information about any areas of concern. If issues have been raised, the companies work with employees on action plans to improve in the highlighted areas.

The Your Voice survey is a major undertaking across the Group and is key to the way we measure our performance compared to the Group strategy. We will continue to seek and respond to our employees’ opinions.