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Our strategy

Sustained and profitable growth

Our strategy is well-established and has seven elements, all of which contribute to stakeholder value through a focus on sustainable, profitable growth. As the economic environment and our clients’ needs have changed, the fundamentals behind those seven elements remain as relevant as ever.

The seven elements:

1. Clients

Strategy: provide world-class services to attract new clients and retain and expand contracts with existing clients.

There is a clear trend for clients to want more for less to help them compete in a world that is hugely testing. They’re looking for operational efficiencies – as always – but now they are looking for them on a bigger scale than ever. Anything non-core can and is being outsourced.

While all clients are looking to outsource, each is at a slightly different stage of the journey, from that first tentative step into outsourcing, to having fully integrated services. For us, growth can come from an existing client trusting us to provide a larger bundle of services or to move down the integrated services route – or it might be a new client who has taken the momentous decision to outsource for the first time. All three scenarios are equally exciting to us and every contract for every client deserves and receives the same high standards of service from our teams.


2. People

Strategy: recruit, motivate, retain, train and develop the best talent in the industry.

Seeing our people in action never fails to delight and inspire. Passionate, caring and driven to delivering great service, they are the public face of Mitie and the single biggest reason for our success. We know that every decision a client ever makes about an outsourcing contract is driven by relationships – and that’s why we value our people so highly. From relationship managers and account teams to the people who cook, clean, drive and guard on the frontline of our operations, our people are what makes Mitie great.

We work very hard to give them the skills and tools they need to be successful and to make them feel part of a brilliant team. For example, through our Mitie Stars Awards we recognise and reward people who go above and beyond for their clients and their colleagues. It’s our way of saying “thanks for a job extremely well done” – and this year we had as many stars as ever including Jon Burn, a Mitie engineer who almost single-handedly kept open a hospital for 50 elderly patients when it lost power during a winter storm.

The Enara acquisition, new contract awards and our organic growth meant that we increased headcount during the year by  8,832 people to 72,401. With such a large and diverse group of people working across Mitie, communication plays a vital role in helping them engage with our vision and values. We were one of the first organisations of our size to see the potential in social media – and we still use Facebook and Twitter to enhance our communication with our people and stakeholders.

I want to thank each and every person for their contribution over the last year. We wouldn’t be where we are today without the tireless efforts and teamwork of all of our people.


3. Risk

Strategy: take a long-term view to protect our business and manage risk.

We have a risk management strategy in place to identify and mitigate risks, in order to protect our reputation and make sure we continue to deliver value to clients.

Whenever we take on tasks that clients used to handle in-house, we become responsible not only for those particular functions but also for the risk that comes with them. Sometimes the work we do is high profile by its nature or carries greater inherent business or public relations risk – in the fields of security and healthcare, for example – and this is where the commitment of our people can be more important than ever. Put simply, we rely on their skills and attitudes, as well as on our own rigorous internal processes, to minimise risk in all our contracts.


4. Responsibility

Strategy: act responsibly and build a reputation that enhances our brand to all stakeholders.

Climate change has thrown environmental issues into sharper focus than ever before, and we’re committed to doing all we can to reduce emissions, waste and energy consumption – not only in our own operations but also, through our Energy Solutions division, for our clients. As a major employer, we are also passionate about equal opportunities and engage with the UK  government and other bodies, such as Business in the Community, to inspire people of all backgrounds to seize opportunities.

In the broader sense of corporate responsibility, our healthcare and energy businesses are both well-placed to contribute towards a more sustainable future for communities everywhere. In fact we support our people and their communities in many ways. In 2012 we launched our Health Revolution, an initiative that encourages employees to lead healthier and happier lives.

From guides on exercise and nutrition tips to sun safety, and drug and alcohol awareness, we’re working with industry experts and enthusiasts to bring our people realistic tips on how to get the most from 2013.

On 18 and 19 May 2013, the Mitie London Revolution cycle ride saw 2,500 cyclists, many of them from Mitie, ride up to 180 miles to help tackle youth unemployment as part of the Evening Standard’s ‘Ladder for London’ campaign. If you use Twitter, catch up with developments at @RevolutionRides.

5. New markets

Strategy: expand our capabilities in complementary markets.

We are always alert to opportunity wherever it arises, and the evolved structure I’ve already outlined demonstrates how we  constantly reshape our business to reflect market shifts and changing client needs. Our mix of services needs to support the long-run growth aspirations of our business, and with this in mind we are focused on entering new markets which meet our margin targets and generate long-term, secure revenue.

We moved into homecare because we identified it as an area where we see significant opportunities to use our core skills to reduce costs and improve quality at the same time. Our Energy Solutions business is another example of where we have seen opportunity and expanded our capabilities to seize it with both hands. Energy services will remain a fundamental part of what we do for clients, as energy costs continue to rise up the agenda for every organisation.

6. Operational excellence

Strategy: improve the operational efficiency of everything we do.

This lies at the heart and soul of Mitie – being efficient is what we do, day after day, for every client. We are never complacent and are always looking for new ways to do more and to do it better than ever. Technology is a great driver of efficiency. Right now, we are investing significantly in technology to support our operational teams and so our clients will be able to quickly and easily keep track of exactly what we’re doing, where we’re doing it and what stage the work is at.

7. Acquisitions

Strategy: support our growth with selective acquisitions.

In addition to the purchase of Enara, which was the third largest acquisition in our history, we also acquired a 51% stake in one of the UK’s leading independent events and leisure catering companies during the year.

Creativevents provides services to a broad range of clients in the exhibition, sporting, festival, cultural and heritage sectors and is a fine example of how we drive growth through selective acquisitions. Established by two brothers fifteen years ago with funding from the Prince’s Trust, Creativevents already has a superb reputation and has twice been listed in the Sunday Times Fast Track 100 Companies. With our investment it will be able to continue developing stylish, high quality and high volume fresh food and drinks concepts.

Acquisitions have always been part of Mitie’s growth strategy, and we will continue to look for opportunities that can create value for our shareholders and support the long-term goals we have for the business.