Morgan's strategy: driving long-term value
We are a globally diversified business, with a clear strategy. We remain focused on keeping our people safe, serving our customers, containing our costs and preserving our financial position.
We have a strategy to make sure that we are the leaders in our field, with the customer and materials insight to apply our capabilities effectively.
Our goal is to make the best possible use of advanced materials, to drive progress and solve difficult problems for our customers and the wider world.
Our strategy builds on our strengths and focuses the Group on scalable businesses in attractive markets. We have developed three distinctive competencies:
- Materials Science
- Application Engineering
- Customer Focus
We serve markets that are growing and where we have room to grow, and we collaborate where customers value our differentiated products and services.
The Group has four priorities underpinning its strategic execution:
1. Extend our technical leadership.
Our objective is to build our technical lead and accelerate new product development, supporting the Group's emphasis on both manufacturing process and materials technology, producing materials which transform our customers' processes.
Our technology teams continue to make good progress with the development of new materials and new products. We have experienced some delays from our customers, as they have responded to the Covid-19 situation, however, we are continuing to work with our customers, providing new materials samples, supporting product qualification and new product introduction.
Each of our global business units has new products coming to market in our growth sectors in the next 12 months, including in:
• electric vehicles,
• and renewable energy.
These developments go through our stage gate process to ensure we address demanding technical issues early and that they have a smooth introduction to production. We continue to develop a pipeline of new materials and applications, working in collaboration with our customers to support the growth of the business.
2. Drive sales effectiveness and market focus.
Our objective is to improve a number of aspects of our sales capabilities: sales processes and their efficiency, the management of key customer accounts and distribution channels, and deeper understanding of end-markets and faster-growing segments.
We continue to focus on the changes we have made over the last three years across the organisation, including:
• embedding and refining our pricing tools;
• completing the remaining training for sales and customer service people not trained last year;
• and, deploying upgrades to our customer relationship management (CRM) tool to provide a better user experience and functionality, as well as embedding that tool into our review processes.
3. Increase investment in people management and development.
Our objective is to strengthen our leadership capability and deepen functional capabilities across the business.
Our teams have switched to remote working seamlessly and have been able to address the many short-term business issues quickly and effectively. We are transitioning our face-to-face learning and development training programmes to virtual. We ran virtual three-day sessions for the final modules in our leadership development programmes since the outbreak of COVID-19, and we are taking the approach and lessons from that into our wider learning programmes.
4. Improve operational execution.
Our objective is to strengthen our operational capabilities, reduce operational costs to fund reinvestment in the business, and improve delivery and quality performance.
We continue to make good progress with our operational efficiency programmes and have met our targets for the first half despite the disruption and lower activity levels. The deployment of our standard tools and common approach has continued across the Group and we are seeing the benefits of that in our performance. This supported our profitability and enabled us to perform well for our customers during this period of disruption.