Draft Cultural transformation the key to raising performance

Transcription

1 Draft Cultural transformation the key to raising performance Leo Quinn, Chief Executive Officer UWE Bristol address 9 October

2 QinetiQ 1940s DERA 2006 Contribution Radar Jet engine VTOL flight Thermal Imaging Carbon Fibre LCD mmwave A heritage of innovation 2

3 2010 bad news early is good news Only the lonely 3

4 Productivity Commercialisation of innovation What are your principles? Employees Customers Market Share Growth Investors Ethics/Integrity/Reputation 4

5 QinetiQ share price (p) FTSE Aerospace & Defence 2010 QinetiQ had a real crisis Actual Share Price Performance since IPO 4,000 3,800 Loss of clear direction ,600 3,400 Forced growth ,200 3,000 High organisational complexity 160 2, , , , , Feb Sep May Dec Jul Feb Oct May-10 QinetiQ FTSE Aerospace & Defence Relative Total Shareholder Return Lack of transparency Innovation not managed too many loss makers Costs too high Fragmented culture leaders, processes, execution Siloed organisation 535m of debt In danger of breaching bank covenants 5

6 A burning deck Don t miss the opportunity to make a drama into a crisis 6

7 Get your priorities out there QinetiQ Focus 2. Cultural transformation 3. Strengthen balance sheet and keep it simple, stupid 7

8 Ultimately it s about measurement A single reporting pack Relentless process Employees Customers Financial What gets measured gets done * F4G = Fit 4 Growth 8

9 Cultural transformation 1. Upgrade leadership 2. Lean out processes 3. Empowerment 5,000 people all pointing in the same direction, each taking one step 9

10 Focus QinetiQ US Services Aerospace Ops & Systems Lifecycle Solutions Software & Systems Engineering Mission & Information Solutions Cyveillance UK Services Weapons Maritime Air Australia Training & Simulation Information & Intelligence Acquisition Services Force & Base Protection Cyber Security Global Products IP New Technologies OptaSense Survivability Unmanned Systems Maritime & Transportation Pre 2010 May 2010 May 2012 Simplicity drives accountability 10

11 Relentlessly recruit your people Don t take them for granted; they have choices 11

12 Relentless communication 2013 Building Confidence People Who Know How Restoring Strength & Building Value WIN FIX 2010 Restoring QinetiQ to Strength Take people on the journey with you 12

13 Our report card Customer Satisfaction Employee engagement 3rd 3rd th th 77% of MOD customers rank us as a top 3 supplier Best Companies Employee Survey Culture s impact on performance Working capital Investing in a generation Apprentices & Graduates (as % of total workforce): 5% target 4.78% Net (debt)/cash Retirement Benefit Obligation Culture eats strategy for breakfast 13

14 Building confidence 24 month self-help plan Organic-Plus Maximise the Core Scale the Explore Sustain the rigour in Test for Value Grow Focus Cultural transformation Strengthen the balance sheet Win Fix Beyond

15 What s next Organic-Plus strategy Core Maximise c85% of revenues EMEA Services Maritime Air Weapons Survivability Robotics C4ISR Close Global Products Explore Scale c10% of revenues Cyber Security and Cyveillance International ranges OptaSense Training UAS Services Space - including Ion Engines Procurement Advisory Services Is it real? Can we win? Is it worth it? Test for Value Maintain the rigour c5% of revenues ALARM TM Smart metering assurance Power Line Sensors MEWS TM E-X-Drive Galileo Secure Navigation Services Invest Trade Through Divest Close A disciplined approach to value creation 15

16 Go beyond Investing in a generation 16

17 2014 our employees as advocates You ll never walk alone 17

18 Draft Questions 18

19 Heathrow 17 January 2008 Boeing 777 BA038 Beijing to Heathrow 19

20 Our People Who Know How Expertise: Machine learning expert in data mining and statistical analysis Role: Team leader, assisting the Air Accidents Investigation Branch (AAIB) Problem: Establish the cause of the British Airways flight 38 crash-landing incident Approach: Analysed temperature data from 141,000 flights of Boeing 777 aircraft (374m records) Conclusion: Restricted fuel flow; most probably due to ice in the fuel feed system 20

21 Customer testimonial We are grateful for both the independent advice and the statistical work QinetiQ has done for us on this particular investigation. There is no doubt that QinetiQ has made a significant contribution to the safety of UK flights to come. Mark Ford, Senior Inspector of Air Accidents (Engineering) Air Accidents Investigation Branch UK Department for Transport 21