Page 5: Monitoring and evaluating performance
Strategy, vision, values, aims and objectives are meaningless if their impact is not monitored and evaluated. Tesco uses a range of methods to collect data and evaluate progress against targets. It uses its Clubcard scheme, along with telephone based research and an online panel of customers, to determine what customers want and how satisfied they are with Tesco’s performance.
Its Executive Committee assess the progress of large-scale strategies. All of its business units have ‘stretching targets’ which are aspirational targets for certain KPIs. The performance of all business units is monitored continually and reported monthly to the board of directors. The following table shows how Tesco monitored its performance against targets using KPIs for the 2012/13 period.
These KPIs are used to assess current performance, make comparisons with previous performance and help managers respond when targets are not being met. For instance, following investigation, an explanation for narrowly missing the staff training target was given:
‘Although narrowly missing this target, Tesco have also heavily invested in our colleagues in the UK this year through our ‘Building a Better Tesco’ plan. More than 250,000 colleagues in-store have received customer service training, with additional technical training for 36,000 colleagues.’
Monitoring healthy options for customers and colleagues supports Tesco’s commitment to helping employees and customers make healthy choices and lead healthier lives. In a revolutionary scheme, using data from its Tesco Clubcard, it has developed a 'healthy little differences' tracker. This measures the health profile of a 'typical' shop by measuring the nutritional value of what customers buy. This will be used to set targets to improve customers' health by comparing how the profiles vary across different groups in society and how healthy initiatives impact on customers' shopping over time.