G4S Annual Report and Accounts 2011

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Overview Strategic review Performance Strategic review Business model Driving outsourcing across our key sectors and our customer base Strategic phases 3. Manage: Delivery of outsourced solutions G4S delivery Solutions designed to improve processes whilst reducing costs Complex project management Continuous improvement methodology Technology integration – management information 2. Analyse and design: Delivery of expertise and design capability Sector/subject matter expertise Risk assessment and consulting Solutions and bid design capability Process re-design/cost reduction Continuous improvement methodology 1. Operate: Delivery of service excellence in each core service with supervisory overlay Supervision/integration Subcontractor management Measurement and reporting Manned security Cash processing Cash transportation Security systems ATM replenishment Facility management Catering Cleaning Training Other Customer needs analysis Developing our business We start by providing single services to customers, to a high standard. 24 G4S plc Annual Report and Accounts 2011
Governance Financial statements Shareholder information Group-wide standards and practices Whilst the business model can be applied in different ways within each market depending on the level of market development, there are a number of group-wide standards and practices (below) which are applied across all businesses to ensure consistent high standards of operation and delivery of the group’s core values. uu uu uu Business reviews and financial controls Sales and business development practices HR standards, succession and talent management uu uu uu Service excellence and operational best practice Business ethics and compliance Legal frameworks and approval processes Customer attributes and contract characteristics Critical success factors Strategic partner: uu uu uu Senior/board level relationship Concerned about risk and reputation Complex needs and decision drivers uu Long-term (5 yrs +), output-based contracts Service bundler/ outsourcer: uu uu uu Senior level relationship Concerned about risk and reputation Single contract for variety of services Multi-service buyer: uu uu uu Supervisory level relationship Buys multiple services under separate contracts Bundles services to gain price volume advantage Single service buyer: uu uu uu Functional manager relationship Heavy intervention from customer staff Single service buyer uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu Strategic procurement process Ability to share in gains Value defined by benefit not price Buys solution to problems Sector expertise essential Quality measured on outputs Service level agreement specifies KPIs Price important but not key driver Centralised contract co-ordination Procurement-based buying process Short-term contracts Price sensitive Quality measured on inputs Short-term contracts Price sensitive Quality measured on inputs Commoditised procurement process Business enhancing Ensuring compliance/reducing losses uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu uu Board level access/relationships Strong reputation for quality and ethics Consultancy-led approach to business development Senior level account and contract management Access to capital/funding Expertise in contractual design Expertise in complex financial modelling Ability to analyse problems and design solutions Sector or subject matter expertise and credentials Continuous improvement philosophy Understanding of risk/reward relationship High-quality bidding capability Ability to leverage the cost base Account and contract management skills Ability to expand into and self-deliver additional services Service excellence in every service line Workforce supervision expertise Training and screening standards Core operational and back office IT systems Low cost of operation with high service levels Increasing customer partnership This is how we work with different types of customer to develop our relationship, extend our service provision and become critical to them achieving their organisational goals at the partnership level – moving through the development phases where we can. Having a good mix of different levels of customer relationship is good for our business. At every level there are elements of our activities which are critical to our success – which help us achieve customer retention, growth and margin expansion. G4S plc Annual Report and Accounts 2011 25
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G4S Annual Report and Accounts 2011

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