4.3 NS&I's ultimate objective is to have a modern, efficient and customer focused operation, which is cheaper to run than at the start of the contract, delivers improved customer service and provides additional opportunities to increase Value Added. Although NS&I recognises it needs to take a whole business approach to addressing the costs of running its operations, it also recognises that it must make a real and conscious effort to reduce operational costs in line with its own long term business needs. During the first two to three years of the contract NS&I acknowledges that the partnership failed to effectively control costs. The contract provides for NS&I to share in SBS's annual profits and therefore NS&I has the opportunity to gain through reducing the cost base.