G4S Annual Report and Accounts 2011

Governance Financial statements Shareholder information
Grahame Gibson
Chief operating officer and
Regional CEO – Americas
David Taylor-Smith
Chief operating officer and
Regional CEO – UK and Africa
Dan Ryan
Regional CEO –
Asia Middle East
Willem van de Ven
Regional CEO – Europe
Stakeholder relationships
G4S engages with multiple stakeholders on a variety of issues.
Customers
The very nature of G4S’s business requires its management and employees
to understand its customers’ business issues and risks and provide an
appropriate solution. Customer engagement also helps to improve customer
service and to develop new services to help customers achieve their
own goals.
Employees and their representatives
As a service business, G4S is judged on its service delivery and the difference
it can make to its customers. It is essential that employees understand their
role in service delivery, are trained well, rewarded appropriately, have the
right tools for the job and are motivated to deliver a quality service to
customers. A significant proportion of the group’s employees is represented
by a union or collective bargaining method. G4S works with unions,
union federations and other employee representatives to improve
standards for employees and to make sure any issues are dealt with
appropriately and consistently.
Investors
Attracting appropriate investment in the company enables the group
to develop its business and continue to invest in its growth strategies.
Ensuring that its strategies and practices are aligned to investor needs
and principles is a core element of developing investor confidence and
ensuring that the group continues to attract the investment it requires.
Industry bodies
As an international leader in its sector G4S willingly takes on responsibility
for establishing strong benchmarks wherever it operates, and plays a
pivotal role in raising standards in the wider industry and society as a whole.
Many G4S employees play an active role in industry bodies and associations
across the world.
Governments and legislators
As well as being some of the group’s largest customers, governments create
and implement laws and regulations and so are important stakeholders.
The group supports regulation which is designed to improve standards
and proactively encourages it where possible. It is important to ensure that
legislative developments do not create unfair competitive environments
or unnecessary burdens on business activities.
Financial KPIs
The key financial performance indicators for the group and G4S operational
management across both the secure solutions and cash solutions businesses
are organic growth, cash conversion (operating cash flow as % of PBITA)
and PBITA margin. These are used for the following reasons:
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9
Organic growth is used as the best measurement of growth inherent
within a business, and it is widely accepted as such
Cash conversion is used to measure the cash generation of the group
and how successful the business is at managing its operating capital
PBITA margin is used as a measure of success in controlling the cost base
relative to sales
The performance of the group KPIs can be seen on page 1 and the
performance of the business division KPIs on pages 29 and 35
Non-financial KPIs
Managers across the group are also targeted to achieve additional specific
company or country objectives which relate to the business environment
in which they operate and the local challenges that the businesses face.
All objectives and targets are focused on driving the business performance
forward and delivering the group’s solutions strategy over the longer term.
At a group-wide level, one of the key elements of the strategy is to ensure
that, over time, a significant proportion of the group’s revenue is derived
from what we define as “solutions” type contracts and relationships.
This is measured through an ongoing analysis of the group’s top customers
across the globe as outlined on page 18.
HR standards and KPIs
In addition, we believe strong employee relationships help deliver excellent
customer service. To ensure that G4S delivers on its commitments to its
employees, businesses are required to report monthly on key metrics
relating to:
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Health and safety
Employee turnover and stability
Industrial relations
Recruitment rates
9 Please see pages 44 to 48 and the G4S 2011 CSR report for more detail
Experts
Experts on specific topics help the group to ensure that policies and practices
are aligned with best practice in many areas such as its environmental impact,
health and safety and human rights.
G4S plc
Annual Report and Accounts 2011
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