Deutsche Post CEO Frank Appel presents Strategy 2015
In March 2009 CEO Frank Appel unveiled his Strategy 2015 aimed at making the company fit for the future. Deutsche Post DHL rests on two pillars: an integrated international logistics company focusing on quality and customer service and a strong mail business with a clear commitment to the universal service obligation in Germany - complemented by new value-added electronic services.
Vision for the Group
"We have to improve if we want to maintain long-term relationships with our employees, customers and shareholders. And we can improve tremendously if we systematically address our weaknesses," Frank Appel said in describing his vision for the Group. "Our goal is to remain Die Post für Deutschland as well as The logistics company for the world."
Following the aggressive expansion phase of the recent years, the new focus will help unlock the company's potential to increase organic growth, Appel said. "We do not have to reinvent the Group. We just have to make more out of what we have."
The essence of the Strategy
In essence, the Group Strategy 2015 provides for a two-tier structure with MAIL and DHL as well as tighter links between the three DHL divisions, the latter being facilitated by the creation of an additional overarching executive committee. Other steps will be the simplification of planning processes, an even more intense focus on the shifting needs of customers and the reinforcement of Frank Appel's open leadership culture through a new incentive system that stresses performance and respectful interaction among employees.
Strategy 2015 is aimed at defending the Group's strong position in the German mail market and raising profitability at DHL. In the mid term, all Corporate Divisions should generate annual organic growth of 1 to 2 percentage points above the market average.
Detailed overview of the measures and programs
- The collaboration between the DHL divisions will be accelerated by a Executive Committee DHL whose function will be to facilitate cooperation among the three DHL divisions GLOBAL FORWARDING / FREIGHT, EXPRESS and SUPPLY CHAIN in the interest of the customer.
- In a step to improve customer orientation, specific target sectors such as life sciences, technology or automotive will be promoted under a dedicated sector management.
- The driver of innovative logistics solutions will be a new organizational unit called "DHL Solutions & Innovation." In this central function - extending across DHL - all previous innovation activities will be bundled in order to offer customer-specific solutions with the help of new technologies. This central function will report directly to the CEO.
- To recalibrate the business in response to decreasing volume and increasing digitalization, the MAIL division will refocus its core business while retaining the high quality level enjoyed by German customers. In the process, the company will primarily concentrate on the integration of physical and digital solutions in dialog marketing. It will also introduce an online letter to provide secure electronic communications as well as integrated sender and recipient services at Parcel Germany.
To meet these objectives, the MAIL division plans to step up investments in coming years and may also consider partnerships. The ultimate goal is to strengthen the company's unique position as an integrated service provider for secure and reliable communications.
- A new guiding principle based on the idea of "Respect and Results" is designed to markedly increase the level of employee involvement and commitment. Openness and responsibility are central to this end. To promote communication among the Group's divisions, future executives will need cross-divisional experience.
- A new incentive system is designed to underscore performance differences and reward extraordinary contributions.
- The dialog between the Group's headquarters and the business units will be simplified and more focused. The finance and strategy areas will work more closely together to help the Corporate Board set group wide targets that will be broken down to the individual units. The financial planning process will be streamlined in terms of time, and the results will be reviewed more systematically.
- Current strategic initiatives will fit seamlessly into the Group's new direction. This applies in particular to First Choice, the successful program to increase customer loyalty that was introduced in 2007. The capital markets program Roadmap to Value aimed at generating cash and increasing profitability will also be vigorously pursued further.
- In the area of corporate social responsibility, the Group concentrates on the climate protection program GoGreen, DHL's Disaster Response Teams as well as education and training programs such as Teach First Deutschland.
