Strategy and performance

Strategy update

Progress update:

Strong progress
Progress
Limited progress

Strategic aim	Key metrics	Progress in 2009	What to expect beyond 2010
Outstanding Customer Service	Drive customer service across all our businesses Instil values and behaviours Ensure personal accountability for Customer Contact Management Measure customer satisfaction	Service monitored and reported across company – State of Service 98.1%, +96% in turnaround businesses Excellent adoption of "Service, Relationships and Teamwork" ethos Personal accountability in place, outstanding customer queries falling rapidly Net Promoter Scores (NPS) monitored across group operations	Proactive customer management to improve query resolution times and retention and identify growth opportunities Implementation of Account Management Cycles for new and existing contracts Cascade NPS objectives down to branch level, launch competitor benchmarking
Developing Capability	Drive performance management, global grading and HR information systems Upgrade functional and operational management Develop service and sales capability	PDRs rolled out to top 1,900 managers, global grading of employees New senior management teams in Pest Control, Textiles and Washrooms, Asia Pacific Successful implementation of Technician Performance Assessment programme for Pest employees	Talent Review of top 500 employees Further strengthening of group sales, procurement and innovation capability Implementation of Sales Performance Assessment programme and technician induction and training programme for Pest employees
Delivering Operational Excellence	Fix turnaround businesses Develop common information systems and processes Consistent KPIs across the organisation Update group governance framework	City Link, Australia Pest, Australia Washrooms, UK Washrooms and UK Pest – off critical list and focused for growth Good progress on driving common systems – inc. iCABS, PDAs and finance systems KPIs now monitored across group Central policy framework upgraded	Develop City Link growth agenda, roll out brand and customer proposition strategy in UK Pest and Washrooms Further roll-out of iCABS and PDAs, complete Navision implementation in US, develop common Textiles operating system Reinforce governance and business conduct rules in Q1 2010
Lowest Cost and Maximum Cash	Deliver £70 million cost savings in 2009 Achieve 95% cash conversion target in 2009 Drive down administration costs Increase textiles processing productivity Deliver procurement savings	Cost savings of £82 million (of which £54 million was from City Link) 143% cash conversion: DSO from 61 to 49 days, capex at 83% of depreciation at AER Reduction in administration and overheads from 19% to 17.9% of revenue Textiles restructuring underway in Belgium and France, further programmes on-going Washrooms procurement savings proceeding well, a slower start to Textiles	£75 million cost savings target for 2010 (City Link depot and hub consolidation, Textiles and Washrooms procurement and plant rationalisation, other group initiatives inc. £17 million indirect procurement savings) Reduce administration and overheads from 17.9% to 16% by 2012 Further reduction in DSO from 49 to 47 days Cash conversion 102%+, capex 95% of depreciation, 15% reduction in stock by end 2010
Profitable Growth	Market segmentation and brand development Sales effectiveness Service expansion Developing markets Acquisitions	Common industry and market segmentation being established across the group, services matched to customer needs through key brand propositions Improvements in sales productivity (new customer targeting, greater focus on sales to existing customers) but overall productivity still unacceptably low Developing markets – Libyan Pest Control contract operationally successful despite delayed payments Acquisitions significantly curtailed in 2008/09 due to focus on operational excellence agenda	Three major pilots underway to improve sales effectiveness and improve retention, success to be determined within six to nine months, adoption of new procedures thereafter Develop service expansion and innovation agenda Develop manned guarding capability (organic and through potential acquisition) Identify potential acquisition opportunities in existing and developing markets (North America, Middle East, China and India)