Fahour's Rejig Needs Licensees Attention

According to The Australian, Sept 25, page 19 (Business sector) Australia Post has managed to raise the return on equity to 18.7% in the 2012 financial year from 14.1% in 2009, the year Ahmed took over. Over the past 2 years the operating losses on the regulated businesses has fallen from $123m to $148m, while profit on the non-regulated business have increased from $451m to $545.6m.

Profit Lines for AP via LPOs community service

Community Service provided by Licensees a financial threat to Australia Post's commercial interests? 


"With the federal election only days away, we challenge the major parties to carry out a full review of Australia Post's parcel delivery service and commit to ensuring Australia Post is not privatised, like Telstra.  Local communities need their post offices yet neither side of politics has acted to protect them".

Representation Allowance - Not making the grade for LPOs

Representation Allowance

LPOG Target No 2

Representation Allowance

Our LPOG star analyst has been working hard putting together a little spreadsheet to estimate Representation Allowance based on a time allowance per day.
For example, for an allowance of 0.25hrs/day it would cost AP an extra $4m per year (roughly) across the entire LPO network based on an LPO operating 5 days per week with hours 9:00am to 5:00pm. Interestingly, based on the 0.25hrs/day our actual hourly rate for our current payment of $719.99 is around $11.52/hr – not too flash really.
If all LPO’s were required to open on Saturdays, the extra cost to AP would be more like $5.6m and our hourly rate would drop to $9.25/hr.

Do You Know What A CTO Is?

Australia Post has a CTO, and after 12 months in the job, the CTO tells a summit for CIOs how Australia Post reacted when the penny dropped about needing to adapt to the changing world of retail. Apparently this happened just over 12 months ago.

Reported on ZDNet 28/08/2013:

On competing with FedEx, DHL, and Toll, Tien-Ti Mak (CTO) reportedly said:

"To be brutally honest with you, we had absolutely no idea how to do that, because we've been a monopoly industry for 200 years, so it's not like our people really know how to use sales or marketing, or customer retention or anything like that" .

So as a Licensee you can be forgiven for not knowing what a CTO is, because Australia Post's CTO has no idea what an LPO does, so I guess we would be even. Stunned, but even. Or is this proof positive that we are not considered 'their' people? The CTO thinks Australia Post has 4,500 retail outlets who have no understanding of what a customer wants. How incredible! Surely someone should have mentioned that 2900+ of those retail outlets are experts on keeping 'their' customers satisfied and coming back for more, regularly.