Strategic Priorities FOR SUCCESS A 2013 PERSPECTIVE

Transcription

1 Strategic Priorities FOR SUCCESS A 2013 PERSPECTIVE

2 OUR VISION That AA Membership is truly idispesible The New Zealad Automobile Associatio s visio is to establish a relatioship with as may New Zealaders as possible. That relatioship will be based o assistace ad service, ad a rage of beefits that ecourage motorists to become AA Members. Our visio is that every motorist cosiders AA Membership to be essetial for their mobility. Membership is the highest it has bee i the 110 year history of our Associatio, ad comprises early 900,000 persoal AA Members ad 470,000 busiess vehicle memberships. Our Corerstoe Services 1 2 Motorig Support Member Discouts To achieve our visio the AA s goal is to cotiue to grow AA Membership ad this pla sets out the strategic roadmap to achieve this icrease. 3 Tourism OUR STRATEGY Our strategy is to focus o three priorities: 4 Advocacy Our Corerstoe Services: Pages: 2-14 To be the Number Oe provider of assistace i six core service areas. 5 Isurace & Fiace Our Foudatios: Pages: To utilise our uique stregths ad Member-cetric focus to achieve that success i those six corerstoe services. 6 Driver Educatio Our Challeges: Pages: Chagig dyamics withi the AA ad the market will always preset challeges. We must esure those challeges do ot hider the achievemet of our visio. 1 2

3 1 Motorig Support Roadservice Vehicle Services Driver Licesig Roadservice cotiues to remai the key reaso why motorists joi the AA. Ultimately, havig 24/7 roadside assistace protectio provides added security for Members. Today the AA remais the leadig provider of roadside assistace for New Zealad motorists, icludig commercial vehicle fleets ad compay registered vehicles. Our strategic goal is to retai our Number Oe positio by simply beig the best. This meas providig the friedliest, fastest, most efficiet ad uparalleled quality of service. Success i maitaiig this positio is vital, otig the importat role roadservice plays i attractig ew members, retaiig curret Members ad buildig customer loyalty to the AA brad. u Cotiue to ivest i roadservice capability ad ehace delivery stadards through iovative solutios, particularly aroud respose times ad providig Members with time of arrival iformatio providig them with cofidece that assistace is o its way. u Embrace emergig techologies especially mobile to assist i ehacig service capability ad overall customer experiece. u Esure service stadards are cosistet across the delivery chai. u Respod to Members ad customers eeds as if they were the sole beeficiary of the service ot oe of 500,000 roadservice calls the AA respods to each year. We take pride i assistig motorists whe it comes to purchasig ad maitaiig their vehicles. Services iclude Warrat of Fitess (WoF), registratio, service ad repair, advice whe buyig or sellig a vehicle, ad techical advice. Beig Number Oe relies o the idea that Members come to the AA as the first choice wheever a motorig service eed arises or advice is sought. Ratioalisatio withi this highly competitive market will occur over the ext few years as WoF ispectio frequecy chages ad the motor trade respods to a overcrowded market. It is critical that we pla ahead i order to retai our positio. u Respod to the chagig market by repositioig the rage of AA vehicle services to AA Auto Cetres. Strategically positioed to meet Member demad, AA Auto Cetres will provide all vehicle services uder oe roof. This will achieve operatioal efficiecies, ad eable existig service outlets to be ratioalised. u Gradually frachise the majority of AA Auto Cetres, with the AA itself operatig key sites i major metropolita areas. u Licese the AA Auto Cetres to deliver prepurchase ispectios ad become hub cetres for icreased mobile service delivery. u Build Members use of our free motorig advice service if it s about vehicles, there should be a o more idepedet kowledgeable authority tha the AA. Sice 1999 the AA has cotracted to the NZ Trasport Agecy (NZTA) as a Driver Licece (DL) aget, which has ivolved processig 80% of all licesig trasactios for New Zealad drivers. This DL role has itroduced a sigificat umber of motorists to the AA etwork, ad geerated reveue that has assisted i sustaiig our New Zealad-wide AA etwork presece. The DL cotract is scheduled for teder i 2014 ad we expect it to be hotly cotested. The challege for the ext cotract term will be supportig the Govermet s target to sigificatly icrease the umber of olie licesig trasactios by The key issue will be how the AA remais relevat as a NZTA aget throughout this trasitio phase. u Cotiue to deliver excellece aroud our executio of Driver Licesig services ad esure customer experiece is as positive ad efficiet as possible. u Moitor our delivery stadards with the objective of cotiually ehacig customer experiece, miimisig waitig times ad esurig accuracy levels aroud trasactio processig. u Support the NZTA i progressig the Govermet s directive aroud icreasig the percetage of olie trasactios. u Teder for the reewal of the DL cotract, with the objective of retaiig our ivolvemet ad deliverig services through our atiowide AA outlets. u Egage with the NZTA to explore how the customer experiece ca be ehaced ad a positive experiece made out of what is ofte cosidered a grudge trasactio. 3 4

4 2 Member Discouts Fuel Discout Member Beefits Show Your Card & Save I 2011 we lauched a programme to help Members ad other New Zealad motorists reduce their fuel costs. AA Smartfuel eables motorists to accumulate cets per litre fuel discouts whe they sped at participatig retailers. These discouts ca be redeemed o fuel purchases at BP ad Caltex. BP ad Caltex curretly also offer a additioal discout of 6 cets per litre through AA Smartfuel o fuel purchases of $40 or more. By early 2013, 760,000 AA Members ad 340,000 o-members have accumulated fuel discouts through the programme. u Grow the AA Smartfuel parter village to icrease the opportuity for participats to ear discouts. This is critical to eable Members to build their savigs quickly, dimiish the programme s reliace o fuel compay discouts ad icrease reveue. u Cross-sell AA Membership to the growig o-member AA Smartfuel cardholder base. Profile the success of AA Smartfuel at every opportuity to attract ew retailers to the parter village ad ecourage more cosumer participatio. u Use fuel discouts to attract youger motorists to the programme ad leverage this to ecourage them to become AA Members. u Ecourage BP ad Caltex to cotiue their discout offerigs ad promotio of AA Smartfuel through their marketig chaels. I 2012 we forged a partership with Specsavers to offer free eye tests as a ew Member beefit. Every two years AA Members are etitled to a free comprehesive eyesight examiatio worth $60. The Specsavers Member beefit is highly valued by Members ad also cotributes to improvig road safety. While Members are ot obliged to buy eyewear from Specsavers, the compay is beefitig from icreased sales from our Members. We ca further ehace the value of AA Membership by addig other beefits like Specsavers. Ay Member beefit we cosider must be geuie i its value, uique to AA Members ad have some relevace to a motorig orgaisatio to eable us to promote it as a beefit of Membership. u Cotiue to evolve the Specsavers relatioship ad broade the programme ito additioal Member beefits aroud eye care ad eyewear. u Itroduce a free professioal drivig lesso for Members, or the childre of Members, who are learig to drive. This has a Member beefit value of $60, ad there is potetial to icrease the frequecy ad value of the cocept. u Form other commercial relatioships to eable the AA to provide other meaigful Member beefits of similar value ad relevace. AA Smartfuel replaced our AA Rewards loyalty programme, which had bee i place for 13 years. While AA Smartfuel beefits accrue i the form of fuel discouts, AA Rewards provided poits that accumulated towards a discout coupo, Membership discout or a istat discout o a purchase. AA Smartfuel has bee embraced by may Members ad other cosumers, providig greater value tha what AA Rewards offered, but the programme does ot appeal to all retailers. We have liks with the Uited States AAA orgaisatio, which operates a global Show Your Card & Save (SYC&S) beefit programme. The opportuity exists for us to build a similar alterative Member beefit programme offerig istat dollar savigs o the presetatio of a Membership card. We expect that some of the former AA Rewards parters ot attracted by AA Smartfuel will respod to this alterative beefit programme. u Evaluate the SYC&S programme i additio to AA Smartfuel to provide Members with the ability to ear istat discouts or added value whe they purchase from retail parters. u Utilise the electroic trackig facility o the AA Membership card to report value eared to Members ad parters. u Promote the rage of SYC&S beefits ad savigs available at selected retailers overseas from parterships egotiated by our global motorig club parters. 5 6

5 3 Tourism Domestic Quality Assurace Iteratioal The AA has played a active role i tourism sice the 1920 s. Beig Number Oe meas beig the leadig provider of tourism services to the public ad the first port of call for Members whe requirig assistace for their tourism eeds. I recet years the iteret has provided a ready source of tourism iformatio ad bookig optios, which has see our former domiace i this sector dimiish. u Idetify how the AA ca take a lead role i tourism services ad egage ew skill sets i the maagemet of tourism service developmet. u Build our domestic tourism profile by egagig i campaigs such as the 101 Campaig. u Egage i a Drive Tourism Campaig ad parter with domestic tourism orgaisatios i the accommodatio ad retal car sectors to promote ad ecourage New Zealaders to travel aroud New Zealad before goig overseas. u All domestic tourism expasio eeds to be iovative, take advatage of locatio-based services ad digital chaels (capitalise o real-time iformatio), be Member-cetric, ad offer pricig advatage. u Build Member value i the service, utilisig Show Your Card & Save ad maximisig busiess likages with Thrifty Retal Cars ad our joit veture i Bookabach. Qualmark is a partership betwee the AA ad Tourism New Zealad ad is recogised as the tourism idustry s guide to quality assurace ad evirometal tourism stadards. Cosidered by may as a premier quality assurace guide withi New Zealad, Qualmark is also a model that other govermets ad tourism orgaisatios ca emulate should they wat to provide a similar quality assurace. Midful of our objective to grow the AA s ivolvemet i domestic tourism, our priority is to cotiue our commitmet to Qualmark i terms of our subsidy to fud its operatio ad our goverace role ad shareholdig owership of 40%. u Build our strog ivolvemet i the directio of Qualmark, recogisig that the New Zealad tourig public are better iformed by virtue of a quality ratig. u Cotiue to subsidise Qualmark s operatioal fudig i recogitio of the idustry s support of our tourism services, otig the sigificat advertisig icome the accommodatio sector provides for our free accommodatio guides. u Itegrate the Qualmark database with the AA s tourism iformatio. u Seek ew opportuities to broade the reach of Qualmark ad its public profile, particularly for iboud tourists. A highly competitive travel agecy idustry, low margis ad chages i how people arrage travel dictates that the AA ca add little value by providig iteratioal bookig services. However, the iteratioal tourism sector still provides plety of opportuity. The Associatio ca play a role i facilitatig iteratioal tourism by providig advice, travel iformatio ad discout beefits to Members ad workig with our overseas motorig clubs. Oe such veture two years ago was the formatio of Club Tourism Publishig (CTP) a joit veture with the Australia motorig clubs. CTP provides guides ad tourism iformatio to Members o both sides of the Tasma. u Provide Members with more iteratioal travel iformatio as to how they ca access beefits while overseas, ie retal cars, accommodatio reservatios ad reciprocal beefits. u Develop ew parterships to exted those beefits, leveragig the collective stregth of the New Zealad Membership base ad that of our overseas colleagues. u Promote beefit offers already egotiated by overseas Clubs through SYCS, ad capitalise o the opportuity to work with our sister Clubs both i Australia ad the regio to develop travel opportuities uique to the orgaisatio. u Work closely with the Australia Clubs to icrease the success of the CTP guides operatio i Australia with commercial ad Member beefits i mid. u Ehace travel isurace beefits for Members ad promote the advatages already offered by FIA membership, icludig iteratioal driver permits ad caret de passage. Esure that help is always there o matter where assistace is required. u Establish a commo brad masthead for iteratioal tourism The AA Traveller. 7 8

6 4 Advocacy Motorist s Champio Road Safety Roadig Ifrastructure Every day politicias, policy makers, media ad other iterest groups make decisios, debate policy, chage taxes, build ifrastructure ad commuicate iformatio that impact o motorists. Protectig ad promotig the iterests of AA Members ad advocatig o their behalf is a key service provided by the AA. Successful advocacy meas sayig the right thigs, i the right places, to get the right results. We wat AA Members to: Idetify with what we say: clearly reflect their views o issues of cocer the cost of motorig, road safety, mobility choice, ad the pleasure ad freedom of their motorig. Hear what we are sayig: we eed to be see ad heard i the media, i govermet, ad with decisio makers. Recogise that what we say makes a differece: the quality of our policy, research ad advocacy iflueces key decisios. u Maitai our recogised positio as the motorists champio ad the voice of the reasoable motorist. u Use our Membership surveys to deliver timely iformatio ad isight o a wide rage of subjects. u Esure our advocacy accurately reflects Member views ad resoates with the wider motorig public. u Udertake research programmes through the AA Research Foudatio, which are well maaged ad deliver powerful road safety fidigs. u Haress the stregth of our Natioal ad District Coucils to efficietly ad effectively perform our regioal ad atioal advocacy. The AA is New Zealad s leadig road safety campaiger. Road crashes cause eormous harm to our Members ad the commuities i which they live. The AA wats motorists to be as safe as possible o the roads. We work to raise public awareess ad kowledge of how drivers ca play their part i road safety. We also play a importat role i improvig road safety outcomes by positively ifluecig policy developmet ad decisios, ad public opiio. We take a costructive partership approach to our safety advocacy ad our views are sought out ad respected. u Deliver our road safety electio maifesto, ad update ad eergetically promote it for the 2014 Geeral Electio. u Ifluece the developmet ad implemetatio of the FIA Decade of Actio ad key Govermet policies such as Safer Joureys. u Cotiue to be a leadig ad credible commetator o road safety. u Grow the Studets Agaist Drivig Druk ad AA Research Foudatio programmes to deliver ehaced road safety outcomes. u Esure AA District Coucils focus their attetio o local road safety issues ad make a differece i their regios. u Esure AA District Coucils have the opportuity to cotribute to the developmet of atioal road safety policies. Gettig the right level of trasport ivestmet is critical for New Zealad s ecoomic ad social developmet. Ifrastructure must support motorists mobility, improve their safety, ad cater for differet trasport modes ad freight. Successive govermets have adopted differet philosophies to guide this ivestmet, but a cosistet ad log-term visio is required. While ivestmet is ow at record high levels, the demad for additioal public trasport ad roadig ifrastructure has also icreased. The Roads of Natioal Sigificace programme provides sigificat beefits, but it is puttig huge pressure o the available fudig ad limitig the umber of projects that ca be completed. We eed to decide how best to raise additioal reveue, ad how it should be spet. Some choices will be ucomfortable for motorists ad will challege traditioal fudig models. The AA will ot shy away from difficult choices if they offer the best log-term outcomes for our Members, motorists ad New Zealad. u Develop a set of priciples for ifrastructure fudig ad use this to advace the iterests of Members ad motorists. u Egage our District Coucils to reflect the differet regioal perspectives ad eeds. u Use research ad surveys to better uderstad the views of Members. u Icrease egagemet with govermet agecies, stakeholders ad others iterested i trasport fudig so that we lead the debate, ot respod to it. u Participate i the Aucklad Coucil-led trasport process to idetify suitable fudig tools ad establish the regio s ivestmet priorities so that Aucklad s trasport eeds are met ad the wider impact o New Zealad is cosidered. 9 10

7 5 Isurace & Fiace Isurace Life Fiacial Services The AA has a growig relatioship with AA Members ad the New Zealad public through providig motor, home ad cotets isurace via AA Isurace. I recet years AA Isurace s policy base has icreased sigificatly with the compay s focus o providig premier motor vehicle isurace protectio. This has bee achieved by offerig more choice to customers from basic third party isurace, to a ew comprehesive o frills motor policy. Today AA Isurace policy holders ejoy a choice of motor vehicle isurace ad competitive pricig optios. u Cotiue to grow the motor vehicle isurace portfolio to attract 25% market share by u Leverage opportuities through the motor vehicle portfolio to grow home ad cotets. u Cosider iovative pricig optios ad cover alteratives for home ad cotets isurace similar to the iitiatives itroduced for motor to stimulate growth. u Cotiue to build a reputatio for quality of cover ad customer servicig. u Cotiue to improve operatioal efficiecy to esure both profit ad growth targets across each portfolio are achieved. AA Life provides Members ad the public with a rage of life isurace optios, icludig accidetal death, term life ad fueral cover. The sale of life isurace protectio is heavily cetred o AA Cetre staff activity, direct mail ad, more recetly, iboud telephoe calls prompted by daytime televisio advertisig. u Cotiue to improve sales by usig our database effectively to esure cost effective, targeted promotio. u Broade product offerigs curretly promoted, usig daytime televisio beyod fueral cover. Build this iboud sales chael to represet 40% of total sales. u Develop ew Life-related isurace products i the areas of core Life Isurace, alog with icome ad mortgage protectio. u Review pricig optios to esure uderwritig arragemets do ot restrict sales or impact our competitive positio. For more tha three decades we have provided a rage of fiacial products to our Members, icludig term ivestmets ad vehicle loas. I 2009 we formed a car fiace relatioship with Marac Fiace, which is ow part of Heartlad Bak Ltd. We have also developed a rage of busiess loas ad vehicle leasig optios for Members over the last few years. We added to our rage of products i 2011 by purchasig 50% of Marac Isurace Ltd. Three additioal products, Mechaical Breakdow Isurace, Guarateed Asset Protectio ad Lifestyle Protectio Isurace, ow complemet our ledig products. Today we re workig with Heartlad Bak to develop a rage of fiace products for AA Members. u Itroduce AA Heartlad product offerigs. u Expad the fiacial service offerigs to the AA Membership base. u Grow AA s market share for persoal ad busiess ledig. u Leverage AA services, particularly pre-purchase ispectios, to grow AA s market share for mechaical breakdow isurace. u Seek further opportuities i the fiacial services area, where ew products ad potetial parters meet the AA s high threshold for value ad service for Members. u Always esure that every product offered has a tagible Member beefit

8 6 Driver Educatio Learig to Drive Free Drivig Lessos Drivig School The AA has bee a leadig provider of driver traiig for may years. We ve ow elevated our service role aroud learig to drive by committig to do more as a Associatio i the learig process for begier drivers. Hece, i 2012 Driver Educatio became a sixth corerstoe service of the Associatio. This commitmet reflects the belief that professioal driver traiig improves the skill set ad attitude of learer drivers, which will i tur, make them safer motorists. The first iitiative is to ivest i providig all learer drivers with a comprehesive booklet o how they should start to lear to drive safely ad get their driver s licece. This booklet will assist learer drivers to be best equipped with safe drivig kowledge ad the ext steps to obtai their full drivers licece. u Produce, i cojuctio with NZTA, a booklet etitled The A to Z o learig how to drive to assist parets ad supervisors to guide learer drivers ad provide all the iformatio ecessary to obtai their licece. u Esure the A to Z booklet is widely available for youg drivers through the AA Cetres, our Drivig School ad educatioal istitutes. Build o the A to Z booklet usig the AA website ad broade the liks with the road code quiz ad other road code iformatio we provide. u Ecourage learer drivers to participate i the AA Defesive Drivig Course (DDC). Professioal drivig istructio for learer drivers has log-term beefits by promotig good drivig skills, behaviours ad positive attitudes. To eable this, we re plaig to offer a free professioal drivig lesso to ay learer driver who is either a AA Member or a child of a AA Member. We will eed to balace demad for this Member beefit agaist the delivery capacity of our drivig istructors. The cost of this iitiative will be fuded from AA Drivig School profits supported by AA reserves if required. u Lauch the free drivig lesso iitiative. u Cosider extedig the scope of the free lessos offer to oce a year, to relatives of a Member, or multiple lessos. u Cosider extedig programme to all learer drivers. u Ecourage other motorig stakeholders to cotribute fudig eablig every learer driver to have multiple free lessos. u Ivestigate extedig the free lesso offer to free DDC courses. Our AA Drivig School provides drivig lessos usig more tha 40 frachised drivig istructors. This, i cojuctio with our Defesive Drivig Courses, delivers a cash flow we ca use to fud the A to Z learig booklet ad cotribute towards free drivig lessos for learer drivers. The ability to expad the free drivig lesso programme will partly deped o growth i reveue from the AA Drivig School, ad also developig driver traiig activity withi the corporate sector. u Esure the AA Drivig School is commercially viable ad delivers icreased fiacial returs. Particular emphasis will be placed o developig the commercial sector aroud the priciple of safer drivig. u Employ dedicated AA drivig istructors as the primary delivery aget of the free drivig lessos i the three mai metropolita regios of New Zealad. This recogises the volume of lessos beig provided uder the scheme should be able to sustai at least three fulltime drivig istructors. u Itroduce qualificatios to ecourage developig the professioalism of drivig istructors, liftig teachig stadards across ot oly the AA Drivig School but the idustry itself

9 Our Foudatios Member Value Propositio Subscriptio Value Equatio Service Members should always feel they receive preferetial pricig ad service advatages The AA edeavours to provide Members with preferetial pricig o products ad services. For example, a pre-purchase ispectio is a service available to all motorists, but AA Members receive a discouted Member price. The more we ca build a Member pricig advatage, the more motorists will see the value i becomig a Member ad remaiig a Member. Our strategic priority is to build Member oly pricig advatages ito as may services as possible, whether they are delivered by the AA or by our commercial joit vetures. The secod part of the Member value propositio is to esure that Members feel they receive service advatages ahead of o-members. For example, while Roadservice will atted to a omember subject to roadside joiig, attedace is oly oce other Members eeds have bee met. I developig these pricig ad service advatages, it is importat they are clearly commuicated otherwise the value propositio offered plays o part i attractig ad retaiig Members. Our Member-cetric focus makes the AA the uique orgaisatio it is, differetiates us from other commercial service providers ad builds Member loyalty. The value Members receive from their Associatio should always be recogised as exceedig the subscriptio cost of belogig The philosophy behid the Subscriptio Value Equatio (SVE) is to demostrate to Members they receive greater dollar value from the AA tha the cost of their aual subscriptio, which will validate why Membership is beeficial. Our strategy is to icrease the SVE at every opportuity. The more we ca ehace a positive gap betwee the cost of belogig ad the beefits available, the more Members we will attract. Our Specsavers Member beefit is a example of how the SVE has bee ehaced by a $60 eyesight examiatio with o additioal cost to AA Members. This SVE philosophy has resulted i a sigificat icrease of AA Membership over the last 20 years. While a rage of free services for Members has bee itroduced, the subscriptio cost has ot bee icreased. I fact, the average subscriptio has decreased over the past 20 years with the itroductio of the My AA teure-based discout. Improvig the SVE is our strategic focus. Providig more value tha the subscriptio cost will lead to achievig our visio of AA Membership becomig truly idispesable. The reaso we exist is to meet the service eeds of Members Service to our Members is our core value. Our rage ad quality of services is why we have built such a extesive Membership base. As a ot-for-profit icorporated society, the AA s reputatio for service ad servig our Members eeds is fudametal to our ogoig success. Service is about the Member experiece ad their perceptio of what we offer. Our objective is to esure our Members achieve maximum satisfactio with our service ad that they recommed the AA to others because of the quality of assistace we provide. It is vital to esure that all activities carryig the AA brad, icludig our commercial joit vetures, embrace our service-based philosophy. The ultimate success of those activities relies o customer satisfactio ad our Members expectatios with AA braded services

10 Brad Reputatio Database District Network Always there whe eeded, providig cosistet service of the highest quality Our brad is oe of the strogest ad most trusted i New Zealad, it is imperative we ivest i maitaiig that positio. The AA brad s stregth comes from our logstadig reputatio for providig high-quality, reliable ad helpful service. Our visual idetity, ad the millios of positive iteractios we have with Members ad other New Zealaders every year, reiforces this reputatio. Our reputatio for service excellece is the backboe of our orgaisatio ad has stood the Associatio i good stead for may years. We ve grow from 17 regioal clubs ito a atioal orgaisatio providig service to early 1.4 millio Members. Our strategic priority is to strive for eve greater levels of service, buildig upo our existig brad stregth ad positioig the AA as a relevat ad leadig brad for the ext geeratio of motorists. Achievig this requires a clear brad strategy that reflects our core AA values, which are followed by all AA staff ad cotractors. We will closely moitor the impact of our brad strategy to esure we are all workig towards the same goals. We must also cotiue to stregthe our visual idetity, especially aroud our six corerstoe services. Each of our corerstoe services must reiforce our core values of trust, quality ad expertise, while stayig relevat to the ew geeratio of motorists. No other orgaisatio has a database of comparable size ad quality With more tha two millio records, oe i every two New Zealaders is o our database. It icludes both curret ad immediate past persoal Members, busiess vehicle memberships, ad AA Smartfuel cardholders. Our database reflects the extesive club ad commercial activities udertake by the AA. Our emphasis o data quality esures that cotact details are accurate so, with more tha 650,000 addresses, the AA ca quickly commuicate with those o the database to iform them about services ad beefits relevat to them. The breadth of iformatio cotaied i our database provides us with iformatio o how best to customise our services. Our Customer Isight team works with busiess divisios ad joit veture busiesses to esure services ad commuicatios are delivered i a relevat ad timely way. Data security ad data privacy are importat terms that remid us to resposibly look after the iformatio with which we have bee etrusted. We do ot allow third parties to cotact those o our database directly, we respect people s wishes about what iformatio they wat to receive from us, ad we edeavour to keep their iformatio secure from disclosure. Every commuicatio from the AA to those o the database must meet our brad requiremets. Our District Network eables face-to-face iteractio betwee our Members ad their Associatio The curret district structure reflects the origis of the AA i New Zealad ad, i particular, the former Automobile Associatios that existed prior to their merger i Today, it provides the foudatio for represetig the views of the Membership ad is closely associated with the 38 AA Cetres across the coutry. We must maximise the cotributios of the 17 District Coucils, particularly i terms of their views o motorig policy. Their participatio i the policy developmet process esures the AA s advocacy is represetative of the Membership ad takes ito accout regioal perspectives. I may commuities the AA Cetres are the face of the AA, especially whe they provide services to the local Members. Our strategy is to maximise the potetial of this commuicatio ad service chael. Ratioalisatio may be required from time to time as Membership demographics chage ad as services vary. However, we should preserve the regioal egagemet opportuities provided by the AA Cetres. The cost efficiecies of techology will always challege bricks ad mortar chaels. The AA should ot udervalue the importace of preservig the traditioal face-to-face cotact betwee Members ad the AA provided through the District Network

11 Our Challeges People More tha just Roadservice A ageig Membership Our people are our greatest stregth ad display the ideals of service, trust ad expertise The service commitmet of those who work for the AA is oe of our most importat foudatios. Lookig i, Members see a ot-for-profit orgaisatio that is focused o the values of service, trust ad expertise. The AA employee s perspective, lookig out, supports these values but recogises the AA operates i a highly competitive commercial eviromet where the service to Members ad customers provides essetial icome. The challege is to esure we build o both the iward ad the outward perspectives we call this the two-way mirror test. The stregth of our people is their cosistet ability to balace service eeds ad values agaist commercial busiess realities. The culture our people create makes them a asset to the AA. Their skill ad professioalism are ofte sought by competitors. Fortuately, may remai as loyal ad valued employees. However, that loyalty does ot happe by chace we ivest i a workig eviromet that recogises ad rewards the performace ad cotributio of its people. We also develop their competecies for curret ad future eeds. Maitaiig this culture requires effective leadership ad huma resource strategies, which are aliged to our values, pass the two-way mirror test ad keep abreast of chage. Dimiish the depedecy o Roadservice as the primary reaso for Membership Motorig clubs aroud the world aspire to fid other services besides Roadservice to attract membership. Depedecy o oe key service is a risk, especially if a alterative provider eters the market or the demad for that service drops. The AA is fortuate to already have a umber of services ad beefits that, whe combied with Roadservice, provide a solid reaso for membership. Recetly we lauched two such beefits the AA Smartfuel fuel discout programme ad the free Specsavers eye examiatio. However, Roadservice is still cited by the majority of Members as the key reaso for membership. Techology advaces, a icreasigly competitive market, ad the reliability of moder vehicles threate the log-term eed for Roadservice. Beig Number Oe i Roadservice will o loger be eough. Our challege is to cotiue to reduce the AA s depedecy o Roadservice by addig ew services ad beefits to membership. It is critical that the AA brad meas much more tha just Roadservice. AA Membership is see as irrelevat by may youg motorists it is perceived as somethig for their parets ad gradparets The average age of our Members is 52. May Members joied i a era of less reliable vehicles ad o mobile phoes. Roadside assistace was a essetial service ad the AA was the oly major provider. Today s youg drivers typically carry smart phoes givig them immediate access to a wide etwork of frieds ad tow providers if their car breaks dow. They see the AA as oe of a umber of providers of roadside assistace with ofte o experiece or appreciatio of our service uless their parets have bee Members. With a ageig Membership we eed to develop our brad ad Membership propositio to appeal to a ew geeratio of motorists, while cotiuig to provide those traditioal services our existig Members value. To do this we eed to develop a rage of services ad Membership beefits that appeal to today s geeratio of ew drivers. We eed to egage with the ew geeratio via their chaels, such as the iteret ad social media commuities, ad we eed to demostrate that the AA is of value to them. Attractig a youger affiliatio relies o providig ew levels of relevace from some traditioal services, such as Roadservice, AA Tourism ad Motorig Services, ad ew offerigs, such as AA Smartfuel ad free ovice drivig lessos. We must also provide helpful olie services which preset ideal platforms to build a coectio with youger motorists from a early age

12 Techology Goverace Successio Plaig Oe of the fastest growig challeges to the traditioal way of doig busiess is the march of techology Irrespective of how we have doe thigs i the past, chagig techology meas we will have to do thigs differetly i the future. By adaptig to ad usig ew techologies, the AA will improve its Member ad customer experieces. Techology should ot be see as a threat, rather it is a opportuity for us to provide ew services ad beefits, ad i may situatios to do so i a cost effective maer. We will iitially focus o iteret ad mobile applicatios, ad o alteratives to our traditioal delivery methods. We will moitor ew ad evolvig techologies to esure we are best placed to haress their potetial i the future. Our challege will be the pace of techology chage, ad the cosequeces of that chage to services ad resources. Our goverace model must keep pace with the growig dyamics of the orgaisatio, while retaiig the values of our icorporated society heritage As a orgaisatio represetig half of all New Zealad motorists, we should edeavour to have the widest possible mix of Members o the District Coucils. The District Coucils primary focus is motorig advocacy, ad Members wishig to be elected should have a geuie ethusiasm for motorig ad focus o what is i the best iterests of a membership-based service orgaisatio. For the purposes of goverace we eed to esure there are idividuals o District Coucils with the appropriate skills ad backgrouds to cotribute to the Natioal Coucil ad Board. As we grow i complexity ad commercial success, it is essetial that those cotributig to goverace have the professioal skills ecessary to oversee the AA s future developmet ad growth. Our challege is to esure those ivolved i our goverace recogise the uique ature of the AA as a ot-for-profit, icorporated society, ad value the stregth derived from our foudatios ad service heritage. Oe of the stregths of the orgaisatio is its stable seior maagemet team We are fortuate to have a stable leadership team. May seior maagers have extesive experiece ad have established their careers with the AA. We must esure that the retiremet of ay seior maager does ot put the AA at risk. Chages withi the seior maagemet team should ot disrupt the plaed growth ad developmet of the orgaisatio. While plas are already i place to miimise that risk, as seior maagers approach retiremet, successio plaig ad maagemet cotiuity plas will icreasigly become a higher priority. Our seior maagemet team is committed to idetifyig potetial talet withi the AA ad to passig o their ethusiasm ad expertise. This will esure our itellectual property is retaied ad that kowledge is successfully trasferred withi teams ad across the orgaisatio. Our challege is to balace orgaisatioal kowledge ad experiece with the itroductio of ew skills ad idividuals o the seior maagemet team

13 success each year is ot measured i terms of profits, but our growth i service relevace ad a growig AA membership