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Customer Earn lifetime loyalty The aisles are clear I can get what I want The prices are good I don’t want to queue The staff are great	Operations Shopping is better for customers Work is simpler for staff The way we operate is cheaper for Tesco The way we operate is responsible and safe
Finance Grow sales Maximise profits Manage our investment	People We trust and respect each other My manager supports me to do a good job My job is interesting I have the opportunity to get on

Our management tool called the Steering Wheel is divided into four quadrants – Customer, Operations, People and Finance – which, in turn, are divided into several segments, each with a set of Key Performance Indicators (KPIs) which are based on demanding but achievable targets.

Performance is reported quarterly to the Board, and a summary report is sent to the top 2,000 managers in the company to cascade to staff. The remuneration of senior management is shaped by the KPIs, with bonuses based on a sliding scale according to the level of achievement on the Steering Wheel.

Corporate Responsibility KPIs

Our CR KPIs are measured and reported within ‘the way we operate is responsible and safe’ segment of the Operations quadrant. This ensures that the management of Corporate Responsibility issues is embedded in the day-to-day running of the company. The KPIs are monitored quarterly and are reviewed annually.

Our CR KPIs reflect:

• customer priorities – e.g. recycling, local sourcing, organics and the Computers for Schools scheme;
• staff concerns – e.g. training and charitable giving;
• Government requirements – e.g. refrigerant use and energy efficiency;
• business risks – e.g. supply chain labour standards, energy and water usage.

We reviewed the KPIs in early 2005, taking into account feedback from investors and non-governmental organisations, this ensured that:

• our KPIs cover our key Corporate Responsibility priorities;
• the data measured is a relevant way of measuring our Corporate Responsibility performance;
• in each case there is no better or simpler way of measuring this contribution.

Three new KPIs are being introduced in March 2005 – on healthy living, inclusivity and diversity, and on the implementation of our international Corporate Responsibility goals.

For a full list of our KPIs, click here.