• The capitals
• Reliability and completeness

Key observations:

New Zealand Post’s report opens by covering the challenges facing the business as well as its positive performance, giving the reader confidence about the report’s completeness and reliability. The organization’s performance, for example, is clearly dependent on the success of its financial services operations and growth in the parcels and logistics business, which support the underperforming mail business. In the report, management acknowledges the impact of rapid changes in the global marketplace, and recognizes the need to innovate to meet these challenges.

There is also an open discussion of the difficult decisions taken to ensure ongoing financial and operational viability, including the significant restructuring of the network and reduced corporate support functions. The report also does not shy away from the negative consequences of the strategy, such as the projected 20% reduction in staff numbers.

The readers’ confidence in the completeness of information is assisted by the description of the detailed strategic assessment undertaken (including extensive stakeholder engagement and risk analysis) to review and identify issues that could impede the implementation of a new five-year strategic plan, or which could have an adverse effect on the value of the Group’s capitals.

The report also presents a balanced insight into the Group’s capitals. For example, several strategic initiatives for enhancing the Group’s ‘networks capital’ (its buildings and infrastructure) are discussed. Actions which prevent value being eroded by the negative outlook for the mail business and rising operational costs, are also clearly identified.