Our Strategy in Action
We have a strategy to make sure that we are the leaders in our field, with the customer and materials insight to apply our capabilities quickly and effectively.
Drive sales effectiveness and market focus
The Group is focused on improving a number of aspects of our sales activity and the capability of our sales teams: sales processes and their efficiency, the management of key customer accounts and distribution channels, deeper understanding of end-markets and faster-growing segments, enabling systems, and sales incentives plans. The Group is driving improvements in these areas through its sales effectiveness programme.
Throughout 2018 we have been deploying the approaches we developed in pricing, segmentation, sales incentive plans and training:
- Pricing: Continued work in Thermal Europe has yielded additional revenue to date. Our deployment workshop in Thermal North America has substantially improved the team’s understanding of pricing strategy and created opportunity for 2019.
- Segmentation: Methods of market and customer segmentation are defined across each global business unit and are being used to help align service levels, manage sales teams and better understand our customer base. Sales incentive programme: Deployed four trials across the Group which has changed behaviours and helped to guide the overall Group deployment planned in 2019.
- Training: Completed a trial for sales teams in Thermal North America, with the programme design being finalised, sales team training has been delivered to the majority of senior leadership teams.
Increasing technical differentiation
Research and development (R&D) investment has been increased to build Morgan’s technical lead and to accelerate new product development. The Centres of Excellence concentrate our development efforts in those areas that can deliver the greatest benefit globally to the Group and its customers.
A key underpinning principle of Morgan’s R&D strategy is in the investment in four global materials Centres of Excellence (CoE):
- Insulating Fibre
- Structural Ceramics
- Carbon Science
- Metals and Joining
These four CoEs consolidate the Group’s R&D efforts around its core technologies, and provide the opportunity to create critical mass to increase the effectiveness of our R&D spend and accelerate key projects.
Increase investment in people management and development
There has been significant investment and progress on this execution priority in 2018. Building on previous years and the reorganisation to a global business structure, the focus has been placed on:
- Reinforcing our leadership behaviours with our top 100 leaders – through how they are measured and rewarded.
- External recruitment and internal promotion into new and existing senior leadership roles to strengthen leadership and deepen functional capability.
- Increased communication and engagement across all levels of the organisation and on a broad base of topics – from updates on strategy and change programmes, to our key focus areas of ethics and safety.
- Supporting our sales organisation to better support the business;
- Continuing the investment in graduates and early career employees, and we are developing our programmes to be more aligned to the needs of our businesses and better serve our global organisation.
Improving operational execution
There are a number of opportunities across the global business units to improve operational execution. Resource and capital are allocated to support specific improvements to efficiency and effectiveness on a business-by-business basis.
Our operational efficiency programmes focus on:
- Global sourcing – moving from local to regional or global sourcing of raw materials.
- Lean manufacturing – identification and elimination of waste within the production processes and the acceleration of continuous improvement projects.
- Manufacturing strategy – improving global capacity management and sourcing.
- Benchmarking – sharing best practice across Divisions and global business units to achieve and monitor cost savings.
- Local continuous improvement – multiple local improvement projects to improve efficiency.
- Automation – the use of automation to improve effectiveness and reduce production costs.