Punch Taverns plc 2011 Annual Report

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Punch Taverns plc
Annual Report and Financial Statements 2011
Operating review continued
Our risks and uncertainties continued
Our key risks and uncertainties continued
Operational and people
Risks and their impact
Change management
Punch is reliant on the successful implementation of change
programmes such as Reaching for Growth to deliver both day-to-day
operational improvements and our strategic plan.
Information systems, technology and security
Punch is reliant upon information systems and technology for many
aspects of its business, which could cause damage if they were to fail
for any length of time.
Product quality
Punch is exposed to product quality risk in relation to drink which is
supplied to us and sold on to our Partners.
Supply chain management
Punch Taverns places reliance on our key suppliers and distributors
to ensure continuous supply of food, drink and other products into our
pubs. Punch Taverns is exposed to the risk of interruption or failure of
suppliers or distributors, resulting in our products not being delivered
on time or to our required standards.
People risks
Failure to recruit, train and successfully retain successful Partners for
our leased pubs, talented managers and Team Players for our managed
pubs, and high-calibre people for our support teams may impact the
ability to deliver our strategic five-year plan and operational objectives.
Mitigating actions and controls
> Formal project management processes are used across the business to
prepare project objectives and plans and to ensure progress is tracked
and results measured.
> Major projects are well communicated across the business so that a
joined up approach is maintained.
> Our Pathway to Partnership change programme is now largely complete,
and the focus has moved onto Reaching for Growth.
> An incident management and business continuity plan is in place for
critical business processes to ensure the business is able to continue
operating in the event of a major incident.
> The business has effectively tested these plans during the year and
made further improvements to them.
> We have an off-site disaster recovery facility if access to our support
centre, or its systems, is affected.
> Safety measures are in place to ensure that product integrity is maintained
and that drink products are fully traceable.
> Our incident management plan is designed so that products can be
recalled quickly if required.
> Punch has reviewed the disaster recovery and business continuity plans
of our key distributors.
> We monitor product quality closely and consider action which may be
required to provide substitute products or suppliers if required.
> Punch won ‘Sunday Times 25 Best Big Companies to Work For 2011’
status during the year.
> We provide industry leading induction training and coaching programmes
for our new Partners.
> We have improved our succession planning at all levels to ensure we
retain high calibre people.
> We carry out an annual Employee Engagement Survey and regular
listening groups to obtain direct feedback from our employees.
> We have a formal remuneration strategy to ensure our teams are paid
fairly and competitively.