During 2014 we introduced a new Group-wide performance management and talent review/succession planning process. A new
leadership development programme is being established and the graduate development scheme is planned to double the number
of graduates when compared with 2014 intake
Introduction of standard processes to obtain intimate knowledge of key suppliers to ensure that all are robust and capable.
Increased collaboration across divisions to share knowledge of suppliers and use of standardised scorecards to monitor trends
in key supplier performance
CHANGES DURING 2014
CHANGES DURING 2014
PEOPLE CAPABILITY
FAILURE TO ATTRACT AND
RETAIN TALENT
SUPPLY CHAIN
FAILURE TO MANAGE THE
SUPPLY CHAIN
Our success as a business will depend
on ensuring we get the right people in key
positions in the organisation. If we fail to
acquire, retain and develop talent leading to
a failure to effectively succession plan, this
will result in the loss of knowledge, intellectual
property and performance
We have a significant number of contracts
with a broad base of suppliers. If we fail to
meet our customers’ requirements in respect
of quality or delivery, it could have a material
impact on the Group’s results
• Appropriate reward programmes to ensure people are motivated to deliver
our Group objectives
• Rigorous appraisal and succession plans in place, which are reviewed
twice yearly
• Group-wide training and development programmes being established for
implementation in 2015
• Monitoring of risks and development of contingency plans to mitigate
the impact of a supplier failure or increased prices
• Review of supply base to reduce over-reliance on key suppliers
• Dual supply on all critical components
RISK
RISK DESCRIPTION AND POTENTIAL IMPACT
MITIGATION
RISK
MOVEMENT
RISK
MOVEMENT
To achieve our strategic objective of doubling operating profit over five years, a number of value enhancing acquisitions will need to
be made. To support this we have introduced bi-weekly process meetings attended by the Executive to increase rigour and visibility.
A standard integration process has been introduced to acquisitions to ensure efficiency synergies are maximised
ACQUISITION RISK
FAILURE TO GROW THE BUSINESS
BY MAKING THE RIGHT
ACQUISITIONS AND INTEGRATING
THEM SUCCESSFULLY
An important part of our growth agenda
is to make acquisitions which complement
or extend our product portfolio. Failure
to make the right acquisitions that deliver
synergies would restrict our ability to meet
growth targets
• Resourced central M&A function working with our divisions to identify
acquisition opportunities
• Robust due diligence with Executive stewardship
• Standardised integration process
• Introduction of bi-weekly business development matrix meetings
to monitor and manage acquisitions and disposals
RISK
MOVEMENT
CHANGES DURING 2014
Principal Risks and Uncertainties (cont’d)
LOSS OF KEY FACILITY
INTERRUPTION TO BUSINESS
AS A RESULT OF A LOSS OF A
KEY FACILITY
NEW PRODUCT INTRODUCTION
FAILURE TO DEVELOP A PIPELINE
OF NEW PRODUCTS
A temporary or permanent loss of a key
manufacturing site or warehouse as a result
of a natural catastrophe or any other reason
would have a material adverse impact on our
ability to meet our customers’ needs
Our strategy of doubling operating profit
in the next five years is underpinned by
organic growth, which will be achieved in
part by delivering a stream of innovative
new products for our customers. Failure to
maintain new product momentum will impact
our ability to grow
• Continued investment in research and development, working with our
key account management teams to ensure we meet our customer needs
• Centres of design and technological excellence established in a number
of locations
• Presented 2015 strategy with substantially increased spend in respect of
new products and capital equipment
RISK
MOVEMENT
Introduction of lean including 5S, Gemba walks and Total Productive Maintenance at site level has created a cultural change in
management’s risk behaviour. Enhancement of site level risk profiling, particularly around key operating risks, is leading to a greater
focus on those risks that could impact the continuity of the business
New product introductions have become an increasingly important part of our strategic growth agenda. Best practice within IMI is
in our Hydronic Engineering division which has brought 14 new products to the market in 2014 and we are now sharing processes
and learnings across the other two divisions
CHANGES DURING 2014
CHANGES DURING 2014
RISK
MOVEMENT
• Introduction of lean in all key manufacturing sites with focus on 5S,
Gemba walks and Total Productive Maintenance (holistic approach
to preventative maintenance involving all employees to maximise
operational time of equipment)
• Site level risk profiling which identifies the key operating risks, tracks
key leading KPI’s and identifies mitigation actions
• Maintenance and regular testing of robust business continuity plans
• Risk control surveys undertaken annually at all key sites to ensure
compliance with best practice in property risk management
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IMI plc
