Annual Report and Accounts 2009

Our North America Housing key performance indicators

We have updated our suite of KPIs to more accurately reflect the way that we monitor the North America business in the current market conditions.

Contribution per legal completion Forward order book as a % of completions Owned and controlled plots with planning
Objective Objective Objective
We strive to maximise the level of contribution per home sold. In a flat or falling pricing environment we look to maximise the level of our order book. We aim to maintain sufficient land holdings to enable us to remain selective in future purchases.
     
Definition Definition Definition
Revenue net of incentives less build costs, land costs and direct selling costs divided by the number of homes completed. The number of homes in our year-end order book, expressed as a percentage of the number of homes completed during the year (excluding joint venture completions). The total number of plots that we either own or control, with some form of planning consent.
     
Why is it key to our strategy? Why is it key to our strategy? Why is it key to our strategy?
In an environment where volumes are likely to remain constrained in the short term, growing the contribution per legal completion offers a route to profit growth. Entering the year with a strong order book puts our sales teams in a stronger negotiating position with regard to price and enhances our ability to increase the contribution per legal completion. Having a pipeline of land in place is key to delivering budgeted future home completions.
Graph: 2008:23.9; 2009:22.0 Graph: 2008:51.4; 2009:67.6 Graph: 2008:29,178; 2009:29,062
£22.0k
for 2009
(£23.9k for 2008)
67.6%
for 2009
(51.4% for 2008)
29,062
for 2009
(29,178 for 2008)
 
 
Customer satisfaction Health and safety Environmental performance
Objective Objective Objective
We strive to maintain and improve our customer satisfaction scores. We want our employees and sub-contractors to go home safe and uninjured day after day. Environmental legislation varies across the different regions in which we operate in North America, but we are working to introduce business-wide performance indicators in 2010.
     
Definition Definition  
Total homebuyer satisfaction score out of a possible 100 points as measured by customer surveys undertaken by AVID Advisors, a customer loyalty management firm that works with homebuilders across the United States and Canada. Reportable injury frequency rate per 100,000 hours worked, excluding sub-contractors.  
     
Why is it key to our strategy? Why is it key to our strategy?  
Delivering high levels of customer satisfaction enhances our reputation, reduces selling costs by increasing customer referrals and reduces the costs associated with rectifying poor quality work. As well as having a moral duty to maintain safety on site, lapses can have a detrimental impact on the business through additional costs, delays and/or reputational damage.  
Graph: 2008:85.4; 2009:86.6 Graph: 2008:0.041; 2009:0.210  
86.6
for 2009
(85.4 for 2008)
0.210
for 2009
(0.041 for 2008)