business growth - graeme smith
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….. To Growth
Paul ThompsonBusiness Development Director ISS UK
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Last link in the value chain – Business Growth
Agenda
Defining Business Growth
Group Commercial Agenda
International Growth
UK Growth
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-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1,0%
-1,5%
5,3%
6,3%
1,5%
3,0%
0,6%
9,0%
7,5%
6,0%5,5%
Business Growth – The ISS Sales Challenge
How are we going to reach the ambitious sales growth?
2013
=
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Business Growth (Price Adjusted Net Growth)Business Growth (Price Adjusted Net Growth)
New Sales New Sales + Increases Increases Decreases Price Adj. Price Adj. Losses - + -
Maximize Maximize Maximize MinimizeMinimize
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Qualified leadsQualified Opportunities Proposal
presented
Lead
Contract wonC/B
D/C E/D F/E
FEDCB
Prospects
A
B/A
Fuelling the Portfolio
Fuelling the Portfolio
+ Once-Only Jobs & Projects
==
Organic Growth
Organic Growth
Business Growth - The Mathematical Definition
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Business Growth?
What is business growth and what is having a real impact on the growth of the company?
Is it…
Question: How would you define your top business growth initiative and area of focus?
…Please use 2 min to come up with your view!
Who do we grow with
Solution Selling
Consultative
Strategic and Tactical
Convenience
Business Chemistry
Volume Selling
Speed
Tactical and Operational
Unit Price
Geographic fit
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Both streams need a process , We call it NOSE
What are the Strategic considerations
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Property Strategy• Grow, stabilise,
retract
Workplace Strategy• Driven by Asset• Driven by
consumer
Outsourcing Strategy• Outsource• Out task• Partnering
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The ISS Sales Process Framework forms the basis of the Sales Excellence Program
Planning Processes
NOSE . An example
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Imagine a place where ....
• All FM staff were recognised and rewarded and subsequently feted for their achievements, where all were engaged with the common purpose to deliver a workplace which becomes a renowned destination and where all staff can articulate their role in fulfilling the objective and openly discuss their own career plan.
• Imagine a contract where there was financial transparency down to the front line with consistent and meaningful management information as a tool for continuous improvement, where the time from decision to execution was halved and all managers both knew and cared for their staff and their customers. Imagine how it could be if all staff acted as one team owning the tactical and operational delivery of your strategy and all felt responsible for the entire built environment irrespective of their role within it.
• Imagine a building where service excellence and customer delight were the common mantra and your business regions could compare their performance in healthy competition whilst being proud to showcase their best practise to others. Imagine a partner who anticipated your needs and executed delivery without you even having to ask.
• This is the Barclays we envision, this is an ISS ‘World of Service’
Barclays Vision and Purpose
Agenda
Defining Business Growth
Group Commercial Agenda
International Growth
UK Growth
141414
Commercial culture
Newsales
Cross-/upselling Retention
Commercial StrategyCustomer Segmentation
Global Positioning
Global
Region
Country
Organic growth
Delivery culture excellence
Business processes
Serviceconcepts
Operating margin
Value creation
Sustainable Profitable Organic Growth The ISS Commercial Value Creation Model and Strategic Direction
Serviceproduct
bestpractise
Best practicedeployment
Operating efficiencyConsistent Delivery
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Commercial Agenda supporting the ISS Way
Sustainable Profitable OrganicGrowth
Segmentation &Value Proposition
Creation
Customer Contract Lifecycle Processes
ISS BusinessSupport Tools
Sales Excellence
Sales Support, Marketing & Positioning
CustomerKnowledge
Global CorporateClients Contracts
ServiceCulture
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7
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Agenda
Defining Business Growth
Group Commercial Agenda
International Growth
UK Growth
The International IFM Market
Unprecedented Market Activity
Demand for international deals is outstripping market capacity
Established sectors like Finance and IT and Pharma are leading the way
Emerging sectors in manufacturing especially Food and Drink are becoming more popular. Retail showing interest.
As Large Bluechips become global a mid market is emerging
Regional new business around DKK 200m to 400m
More current customers are looking at regionalisation (defensive strategy implications)
Those sectors who have looked at regional are now going Global
Still only a few customers really being strategic in their outsourcing
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Market remains strong and will continue to grow
IFS: Integrated Facility Services
Self-delivery
Which FM Model?
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FM: Facility Management
FMProviders
Subcontractor
Subcontractor
Subcontractor
Subcontractor
Self-delivery at ISS
ISS delivers a vast majority (typically >80%) of services with own employees which enables us to bring tangible benefits to our customers:
• Efficiency and consistency through excellence programs and standards
• Flexibility and scalability through efficient supply/demand planning across portfolio
• Risk reduction and brand protection through ensured regulatory compliance
• Transparency and convenience through single-point-of-contact
When used, our sub-contractors are secured to be fully compliant with all ISS and client quality requirements so that we can take full responsibility for the delivery chain.
vs.
Agenda
Defining Business Growth
Group Commercial Agenda
International Growth
UK Growth
UK Market
Maturing market, with more sophisticated buyers
Buying consolidation continuing, with procurement bundles growing larger and more complex
Customers have been under tremendous cost pressure over last few years
Direct delivery, integration, technology and sustainability all continuing trends
International dimension becoming more important forcing some UK only players to increasingly focus on public sector
Highly competitive market place
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UK competitor analysis
Updated slide
Describe key competitors’ strengths, weaknesses andstrategic direction e.g. focus customer segments
In regard to Revenue, Organic Growth and EBITA please use last fiscal year figures
Remember:What are your key takeaways from the competitor analysis?
Updated slide
Describe key competitors’ strengths, weaknesses andstrategic direction e.g. focus customer segments
In regard to Revenue, Organic Growth and EBITA please use last fiscal year figures
Remember:What are your key takeaways from the competitor analysis?
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Strengths Weaknesses Strategic direction Rev. (currency)
Org. Growth
EBITA %
• Offer single and multi service portfolio
• Well established brand & reputation
• Sales & marketing capability• Skills in Carbon & Energy mgt
• UK only footprint• Operations dont always deliver• Limited catering capability
(Creative Events)• Strategic sector entry at high
margin risk eg Healthcare
• Focus on Integrated Services• Strengthen facility and
property capability• Total UK coverage• M&E/Carbon offering• International dilemma,
homecare offering
£1,410m(FY Mar 12)- FM
Only
6.2% 6.36%
• Long established catering base
• Strong International IFS offer• Quality of market
communications & PR• Senior relationship focus &
customer retention
• Service support reduced to clients
• Reduced emphasis on client needs
• Major group focus• Reliance on multi service• Strengthening in global IFS
E700mHY Feb
13
(2.6%) 4.71%
• Global footprint• Long established catering
base• Focus on multinational
contracts through foodservice• Strength of procurement
• No real bundled hard/soft focus or TFM capability
• Seen as recovering from period of overgrowth
• Strong focus on margin
• Focus on emerging markets• Developing support services
through acq’n (VSG, ICM)• Delivering cost efficiencies in
mature markets• Moving into Global IFS
£6,243mFY Sep
12 (UK&I, Europe)
(0.7%) 6.36%
• International spread• Senior relationship focus &
customer retention• Increasing multi-service
Remain acquisitive
• Heavy reliance on manned guarding, prisons and border control business
• Short term reputation damage from Olympics
• Reliance on outsourcing of security
• Enhance cash services• Total UK coverage• UK the FS R&D Lab• Wide security focus
£1,312mFY Dec
12 – Secure
Solutions
8% 8.8%
• Single Service Cleaning• Well established reputation• Strong UK presence• Systems Investment
• Limited Service Lines• Limited Geography• Low Margins & lack of access
to funds
• UK seen as mature• Focus on Indian Development £721m
FY Mar 12
3.2% 1.71%
• National Coverage• Scope of Services – self
delivery• Aggressive bidding –
accepting of low margins
• Pest Control & Cleaning perception
• Lack of Investment• Weakness in delivery
• Likely to be broken up£592mFY Dec
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6.9% 4.95%
Market facing communications strategy
Continue to build ISS brand presence and recognition through:
Positioning ISS in terms of thought leadership in FM
Effective PR through industry and wider press channels
ISS UK web site
Investment in social media channels
Tactical response to brand threats
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Commercial and sales strategy
Retention as the foundation for growth
Build the pipeline for new customers through segmentation, targeting and proactive engagement
Build the pipeline with existing customers through targeting and proactive engagement
Convert more opportunities by improving our sales process through the Sales Excellence Programme
Alignment with SPF and effective use of CRM
Creation of bid support Centre of Excellence
Consistent sales training for all key UK sales personnel based on NOSE & VP principles
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Commercial culture
Newsales
Cross-/upselling Retention
Commercial StrategyCustomer Segmentation
Global Positioning
Organic growth
Our key differentiators
Depth of delivery coverage across many countries
Developing customer centred solutions
Choosing the right model for the customer
Putting people at the heart of the business
Creating lasting change
Business intelligence in practice
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Questions?
….. To Growth
Thank you for your attention!
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Global competitor analysis
Strategic direction Operating model
• Building self-delivery IFM capabilities within focus services (mainly business critical technical services) in key markets (US and UK)
• Partnership strategy in other markets and for service areas they have no wish to self-perform (e.g. soft and non-business critical hard services)
• “Corenet Model” with predominately managing agent in FM
• RE and project focused• Driven by ability to leverage
relationship into real estate deals
• Similar to CBRE. Very strong particular in Asia. Now taking this model to EMEA. Are pursuing a more “old fashioned” partnership strategy – they will partner with several subcontractors but without creating real strategic partnerships
• New strategy to move towards Self perform• Strong Tier 1 mgt , Strong in APAC
• “Corenet Model” with predominately managing agent in FM
• RE and project focused• Driven by ability to leverage
relationship into real estate deals
• Largest FM company (revenue exceeding USD 5 billion). Main focus on hard services capabilities. Most soft services are outsourced (e.g. cleaning, but not e.g. receptions etc)
• Adding RE services to their delivery model• Energy focus trying to leverage sister divisions • Business relationship with Compass• Losing business and not winning new
• FM • Engineering, maintenance and
process focused• Linked to product or other core service
offering• Service team structure when site
based critical mass
• Strong focus on increasing delivery capabilities outside food services. Have invested heavily in US, UK, APAC and LAR where they today self-deliver many facility services
• Sodexo have invested in developing centralised processes and systems to service global customers and a Corporate Clients organisation . KAM’s on targeted customers• Focus on Pharma sector been successful in number of global bids
• Food / other services• Service delivery increasingly based
on integrated model• Looking to acquire Hard FM service
capability
• Still mainly focus on food services but have won significant IFM contract (Shell Europe outside Nordic and Benelux). Their IFM focus is within petrochemical segment (off-shore and remote sites)
• Business relationship with JCI• Sleeping giant
• Food / other services• Service delivery increasingly based on
integrated model• Acquiring new service sets
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