The Group's long-term strategy is to build three distinctive core capabilities: materials science, application engineering and customer and end-market focus, applying these to a portfolio of scalable global businesses where technical expertise and differentiation are valued to solve customers' challenging problems.
Move to a global business structure
The reorganisation to six global business units is complete. It has led to improved global co-ordination across the Group and strengthened accountability within each global business unit, simplifying the approach to customers and markets and increasing operational focus.
Improve our technical leadership
Research and development investment has been increased to extend Morgan’s technical lead and to accelerate new product development. Additional Centres of Excellence will be established allowing further concentration of development efforts in those areas that can deliver the greatest benefit globally to the Group.
Improve operational execution
There are a number of opportunities across the global business units to improve operational execution. Resource and capital will be allocated to target specific improvements to efficiency and effectiveness on a business-by-business basis.
Drive sales effectiveness and market focus
The Group is focused on improving a number of aspects of its sales capabilities and process: sales processes and their efficiency, the management of key customer accounts and distribution channels, and deeper understanding of end-markets and faster-growing segments.
Increase investment in people management and development
The Group aims to strengthen its leadership capability and deepen functional capabilities across the business, including in sales and engineering. Senior leaders will be benchmarked externally, new talent introduced and future leadership candidates identified from within the business. Performance management will be enhanced for the Group’s top management and the structures and targets for incentive schemes will be reviewed. The Group will invest more in executive training and create clear career paths for its technologists and engineers.
Simplify the business
The reorganisation of the business enables the Group to run each business unit on a global basis. A Morgan business will have sustainable presence in its end-market and be scalable, operating in attractive growing markets where it has the ability to add value to our customers. It will have synergies with the rest of the portfolio, be organisationally robust and deliver – or be capable of delivering – strong financial performance.
The Group uses the characteristics set out above to test new investment opportunities, screen its existing businesses for fit with the Group, and to identify areas requiring strategic attention and action.