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Our strategy

Sustained and profitable growth

Our strategy is to deliver sustainable, profitable growth, and is supported by a focus on six key elements:

1. People
‘People’ is one of the six key elements in our strategy. We aim to recruit, motivate, retain, train and develop the best talent in the industry. Why? Because in outsourcing, more than almost anywhere else, it’s the people on the front line who make the difference. They cook, clean and paint. They guard, mow and repair. They welcome guests, control pests, provide personal care and much more besides. And they do it all with a real desire to serve and, just as important, a smile on their faces. Their brilliant and hard work is the single biggest factor behind our success. We are our people – no more, no less – and they deserve and receive the greatest support we can give them.

That comes in the form of recognition programmes such as Mitie Stars, which gives us the chance to say ‘thanks’ in a very public way to those who have delighted clients by delivering beyond expectations. Our support is also evident through a variety of regular communication channels. Many of our people are young and for most of them social media is as much a part of their lives as TV and phones. We communicate in the way that they prefer – and that means using Facebook and Twitter.

We aim to help our people be the best they can be and provide a range of training and development opportunities, from eLearning programmes to career pathways which define all key roles across the business and give us all clear guidance on what is required to make progress in our careers. In 2014, we look forward to launching the Mitie Academy. This will boost our account director talent pipeline, by sharing knowledge and providing development opportunities tailored to the needs of each individual.
2. Clients
Clients in both public and private sectors continue to recognise outsourcing as a route not only to reducing costs but also to accessing expertise. We have enormous experience and our clients know that by working with us they are benefiting from a track record of delivery, trusted relationships and quality service. Put simply, we hit the ground running and make a real difference from day one.

Today, clients increasingly want that ‘difference’ to be applied to more and more individual services. Many clients initially appoint us to provide a single service. Then, when we have proved our value, they frequently move towards bundling a number of services together – and there’s a clear trend towards bundled and integrated FM, where we deliver a suite of services, often across multiple sites. We see opportunities for great service and consistent growth in all contracts – whether we’re providing one service or twenty-one.

Client retention is key to our organic growth, particularly in relation to our top 50 strategic contracts, which account for over 40% of group revenue (only one of these contracts accounts for more than 5% of group revenue, which currently contributes 8% of revenue). During the year our retention rate on these accounts was 92%. 
3. Operational excellence
We focus on delivering efficiency – that’s why clients enjoy working with us. But in addition to the day-to-day services, clients are seeking value-added advice and innovations that reduce their total occupancy costs and improve service levels.

We never rest on our laurels and never tire of looking for ways to do things better. Sometimes that means lateral thinking and approaching a task or service from a completely new angle. At other times, it can involve introducing new or improved technology such as MiWorld, a web-based management information portal that enables clients to monitor and manage all their buildings and equipment in one place, in real time.

We continue to invest in these capabilities right across our business, and in doing so create true partnerships with our clients, drive cross selling and improve retention.


4. New markets and services
FM is our heartland and the main driver for both our current success and future prospects. At the same time, we’re constantly looking for opportunities in new markets that meet our targets for margins and long-term, secure growth. We do this by growing organically in new markets, or by making acquisitions. We have an established track record of using acquisitions to add strategic capability and fuel long-term organic revenue growth.

Healthcare is an important area where we have used acquisitions to enter a new market. This is a key adjacency to our core business and demands many of the same key strengths needed to succeed in facilities management: client focus, service, flexibility and support. It also offers tremendous growth prospects. During the year we paid around £9m to bring Complete Group into our organisation. One of the leading complex care companies in the UK, the business employs some 650 people, including registered nurses. Complete Group provides high acuity care at home to approximately 150 individuals with ongoing complex clinical healthcare needs and will complement our offering in the rapidly-growing homecare market.

We also invested over £1m in two new ‘Mitie Model’ businesses. Our existing waste business has been recapitalised to allow the management team to take an equity stake in the business and motivate them to grow it and share in its future success.

In addition, our latest start-up business is Mitie Local, which provides cleaning services to small and medium sized London based customers.

Mitie’s Care and Custody business, which specialises in custodial management services, also successfully expanded its presence in the immigration centre market.

In the security market, we were pleased to make another small acquisition, of UK CRBs Ltd (UKCRBs), the criminal records checking service, from the management team. UKCRBs is one of the largest providers of online criminal records checking services in the UK and gives our Total Security Management business a scalable platform to compete in the rapidly growing screening and vetting market.
5. Risk
Effective risk management is critical in helping us achieve our strategy and is a key consideration in our business decision making. Through our contracts, we become responsible for certain tasks and functions. With responsibility comes risk – and we use a thorough risk management strategy to help us identify and mitigate those risks.

As the group grows in scale and complexity, a flexible and dynamic approach to risk management is required to help us plan and prioritise the use of our resources effectively across all areas. This enterprise-wide framework ensures we can identify, mitigate and manage our significant risks effectively, both at an operational and strategic level.

We are also aware of our obligations to operate in a responsible and ethical way. Our ethical business framework sets out clear expectations and behaviours for all our people to follow, which holds them accountable to always doing the right thing and adhering to our values.
6. Responsibility
We take our responsibility as a business seriously, and work hard to minimise our impact on the environment and maximise our support for local communities. Our Energy Solutions team helps many of our FM clients and we use the same expertise to make sure that emissions and consumption associated with our own operations are as low as possible.

We’ve set ourselves an aspirational target to reduce our carbon footprint by 35% by 2020 and we’re well on our way to achieving it.The Mitie Foundation, set up in 2013, is an independent charity focused on creating job opportunities for people of all backgrounds in the communities in which we work. Our award winning Real Apprentice programme, under its new name Ready2Work, has continued to go from strength to strength. A record number of five programmes have been completed this year and 51 people completed the course. Of those, 38 have been offered a job or apprenticeship, or have gone back into further education.

We were delighted to be recognised with the highest ranking in Business in the Community’s (BITC) Corporate Responsibility Index, being awarded a Platinum Big Tick, a new banding in the Index for 2013 designed to challenge leading companies on topics such as the unique contribution their business can  make to create a sustainable economy. Our commitment to diversity also saw us win the 2013 Leadership Diversity Award at the National Business Awards UK, and for the fourth year in a row we were named as one of the Times Top 50 companies where women want to work.