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Selected Keyword: ‘Management’

Strategic ambitions

Value ambition


Progress and Overview 2009


Plans 2010









Outgrow our markets.
A measure of growth. Measured by growing faster than the markets we participate in.


Revenue growth in % (bar chart)

A difficult year from a volume perspective due to the market downturn and de-stocking effects


Ensure delivery of volume growth expectations from significant investments (for example in China and in technology)


Some market share gains; limited evidence of market share loss


Continue to aggressively invest in high growth markets


Strong performance from margin management


Continue to redirect investment to bigger research and development projects.


Continued to invest in future growth in high growth markets.




EBITDA margin
> 14 percent by end 2011.

A measure of operational effectiveness. On a corporate level, we use 14 percent as a proxy measure performance for top quartile.


EBITDA in € millions (bar chart)

Exceeded the 14 percent EBITDA margin target in two quarters, despite the difficult economic climate


Continue to focus on the three Cs (Customers, Costs and Cash)


Strong performance in gross profit margins due to margin management


Continue to professionalize the procurement function and ensure we best leverage our scale


Major cost reductions delivered from ICI synergies and other restructuring.


Deliver remaining ICI synergies and restructuring savings





Increase focus on absolute EBITDA growth, consistent with the focus on volume and market share gains.

Operating working capital percent of sales level decreasing by 0.5 per annum
A measure of capital efficiency and operational effectiveness.


With a reduction of operating working capital as a percentage of revenue by 2.8 basis points, outperformed our ambitions


Continue to reinforce and leverage processes, systems and tools for operating working capital improvement


Control of inventory levels and receivables particularly noteworthy


Increase focus on inventory improvement through greater emphasis on complexity reduction.


Achieved improvements virtually across the board with 13 of the 15 businesses showing improvement.




Remain in the top three on the Dow Jones Sustainability Index
A measure of long-term performance potential. Measured by external assessment of performance versus our peer group by Dow Jones.


Remained in the top three (top two)


Focus strongly on operational eco-efficiency improvement (e.g. energy, raw materials efficiency, waste, water, emissions)


Key areas of strong performance were corporate governance, risk management, supplier aspects and climate policy


Embed the Carbon Policy


Key areas for improvement identified as operational eco-efficiency improvement, aspects of people development and implementation of R&D processes.


Pursue safety and people development actions as identified below.

Top quartile safety performance
A measure of how we look after our people and operational effectiveness. Best-in-class performance in total reportable injuries for employees and contractors per million hours worked; proxy for best-in-class performance defined as 2.


Significantly improved performance versus 2008; nearing our target of 2


Continue roll-out of behavior-based safety, safety leadership training and HSE&S audits to fully cover AkzoNobel sites


Greatly increased number of sites using behavior-based safety


Develop and roll out a more consistent and professional approach to process safety.


Began to implement safety leadership training and enhanced HSE&S (Health, Safety, Environmental and Security) audits.




Step change in people development
A measure of how we look after our people and long-term performance potential. Measured by improvement on key metrics in our employee engagement survey.


Strong performance in many employee engagement measures


Roll out new leadership development series for our senior executives and executive potentials


Improvement required in our people management focus


Implement the Talent Factory scorecard and monitor and drive action plans for improvements on key metrics


Agreed a comprehensive company-wide strategy agenda for HR


Continue activities to significantly enhance diversity and inclusion levels


Continued to deliver key management development training programs


Establish regular company-wide employee engagement survey.


Began taking irreversible steps in diversity and inclusion.




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