Crozier cuts back UK Royal Mail board

ROYAL Mail’s chief executive, Adam Crozier, has cut its management board from 11 to eight members in an attempt to make it more efficient.

Paul Rich, marketing director, Paul Bateson, managing director of logistics and Vanessa Leeson, managing director of Parcelforce, have left the board, as Mr Crozier seeks to prepare Royal Mail for competition. They will remain with the company.

From 2007, the postal regulator Postcomm is opening the market to full competition. However, this date could be brought forward.

Mr Crozier has also tightened his grip on the company by replacing Elmar Toime, Royal Mail’s executive deputy chairman, as chairman of the management board, although he remains a board member. Mr Crozier took over day-to-day running of the letters business from Mr Toime in May.

At the end of August, Royal Mail revealed its worst performance for three years, having failed to meet any of the 15 targets for minimum acceptable service imposed by Postcomm. Almost 12pc of first-class letters did not arrive the next day. The target was for 92.5pc to arrive in that time.

Royal Mail declined to comment, but a source close to the company said: “This is Adam Crozier consolidating his authority. He took direct control of the largest bit of the business and is forming a smaller, tighter board. It would be really wrong to blame the quality of service on these three individuals.”

However, the company is looking for a new marketing director, as Mr Rich is to take on a new “senior” role within the company, although it is not yet clear what this will be.

From April 1, the logistics division, run by Mr Bateson, will merge with letters.

The company was fined pounds 7.5m last year for failing to meet Postcomm’s 15 targets. It will find out this autumn if it is being fined again

Royal Mail shifts Rich from senior marketing role
Marketing, p 14 09-15-2004
By Ben Bold
15 September, 2004

Royal Mail is hunting for a marketing director following chief executive Adam Crozier’s decision to remove Paul Rich from the position.

The postal operator is seeking a marketer with greater commercial marketing experience than Rich as it faces competition from new entrants to the market.

Rich’s promotion in June 2002 from director of corporate development to marketing chief surprised industry observers. Many had expected Royal Mail managing director Gillian Wilmot to be given the role.

A Royal Mail spokesman confirmed the company was searching for Rich’s replacement. It is not yet known whether the recruit will sit on Royal Mail’s board.

Rich will continue to oversee marketing for Royal Mail until his successor is found. The spokesman said that ‘another senior role’ would be found for him within the organisation.

This week Crozier also announced he had cut Royal Mail’s management board from 11 to eight. In addition to Rich, Paul Bateson, managing director of logistics, and Vanessa Leeson, managing director of Parcelforce, have left the board.

Last month Royal Mail announced that it had failed to meet any of the 15 targets for minimal acceptable service set for it by watchdog Postcomm.