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Facilities Show 2015
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Annual Report 2015
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Annual Report 2015
Sustained and profitable growth
Our strategy is to deliver sustainable, profitable growth, and is supported by a focus on six key elements:
People are the lifeblood of our business, the single factor that makes the difference between Mitie and our peers.
Every year, we make a significant investment in attracting, retaining and developing the best people in the industry at all levels. This ensures that our people have the expertise to do a great job and are motivated to put the client first by carrying out their tasks efficiently and effectively. In 2014, for example, our FM business launched a Key Accounts programme, which aims to develop our most senior account directors and future leaders. Working in partnership with the Manchester Business School, we have conducted three intensive courses focusing on strategic intent, customer relationships and commercial acumen.
In addition, 120 middle and senior managers completed structured personal development through the Mitie Academy. We have also continued to actively support the Government’s apprenticeship programme.
Over 800 Mitie apprentices have gained nationally recognised qualifications at levels 2 and 3, working in our Environmental+, Total Security Management and Gather & Gather businesses.
At the year end, we employed 69,557 people. We recognise the value of training and motivating all of our people. E-learning is an important tool in our development programmes and in 2014 we designed and launched Career Pathways e-learning support, which helps all of our people learn how to move ahead in their careers. We have also expanded our national employee roadshows, which several thousand of our managers attended during the year. Our employee discount programme, Mideals, remains a really important benefit to all of our people and we have expanded the range of rewards it offers.
Everything we do is focused on our clients. We are all about service excellence and mark our progress as much by client satisfaction and retention rates as by our own financial performance. Our FM contract retention stands at above 90%. We are working hard to make sure that our track record in all sectors, for all client contracts, reaches those same high standards.
Mitie clients stay with us because we prove our value. Often, our relationships begin with a contract to provide a single service. Then, as the client experiences the value we bring to the business, the relationship evolves into a bundle of services or a fully integrated contract which sees us deliver a raft of different services under a single agreement.
In addition to initiatives such as the Key Accounts programme – which although part of our People strategy also delivers tangible benefits to clients – we strive to create a culture that always puts client focus at the heart of how we work.
In the complex outsourcing marketplace, it is clear that one size will never fit all. So we treat each client as unique; as an opportunity to create a tailored service – or a bundle of services – that meet their needs with pinpoint precision.
Client focus means creating a clear simple message that resonates for one client and one client alone. This is uniquely tailored and demonstrates a real understanding of where they are, the pressures they are under and how the services we provide can be linked together in ways that unlock potential and deliver new benefits.
3. Operational excellence
Helping clients operate more efficiently is our core skill. It is why clients choose to work with us and why we have grown so consistently. However, we know that there is always a better way of working – a better way to deliver operational excellence and the best way to stay ahead of the competition. Management information, data and technology is an increasingly critical part of our service offering, and we continue to invest in this area.
Our team continually seeks out new and better ways of working. That means concentrating on what matters most to customers, listening to feedback and being innovative to meet ever-increasing expectations. It means efficient delivery, using standard processes, key performance metrics and knowing exactly who is doing what, where and when. And it means being effective, with clearly defined roles and a culture of continuous improvement supported by sharing best practice, such as how we use management information and technology.
Technology is also a key driver for efficiency improvement. Our teams have a long track record of deploying innovative tools to enhance performance, from remote surveillance systems to our Miworld portal which enables clients to monitor and manage all their buildings and equipment in one place, in real time. During 2014, we launched a number of new technology-led initiatives, including the security industry’s first ‘all incident’ crime mapping software. This brings together our recorded security incidents and police crime data in an online, UK-wide registry to provide the most up-to-date intelligence and analytics.
4. New markets and services
Our current and future performance will be driven by our experience and expertise in our core FM markets. However, our skills are also relevant to adjacent sectors where we can connect strategically with customers and offer them efficient and quality services.
Technology-led solutions have become a key differentiator to our offering. We have continued to invest in niche areas that give us different capabilities and enable us to constantly expand the breadth of what we do for our clients.
For example, our acquisition of Procius, a leading pre-employment screening and vetting company with over 3,000 clients across all sectors. Procius provides our security business with additional niche capability in a high margin sector, and will drive its growth as one of the country’s largest providers of pre-employment screening, competency management and criminal records checking services.
The year also saw the acquisition of Source8, which has added a valuable real estate, technology and risk management consultancy offer to our portfolio, complementing the services we already provide to our clients. Source8 brings strong growth potential to Mitie, supported by a high quality management team.
Risk management is not a ‘nice to have’ but an essential aspect of how we work. Our approach to risk management is based on an enterprise-wide framework through which we identify, mitigate and manage our significant risks at both an operational and strategic level. Risk management informs every single decision we take, including our exits from our M&E engineering construction and Asset Management businesses, both of which were completed during the year.
Health and safety is a key risk for Mitie and we are pleased to see the number of reportable health and safety incidents reduce again this year. However, we will never be complacent about the well-being of our people and continue to focus on continual improvement. Ethical matters and behaviours also influence our risk profile and we encourage the highest standards across the business. In 2014, for example, we produced ‘One Code’, a new code of conduct that promotes our values and enables our people to do the right thing at all times.
Our business is about more than delivering great service to clients and meeting shareholder expectations. As a very large employer, we touch the lives of countless people, directly and indirectly. We have a huge opportunity to use our expertise and resources to support local communities and minimise our impact on the environment. This year was one of our most successful years to date for the way in which we succeeded on both counts.
Youth employment is an issue that really matters for us. Mitie started out as a small business in 1987, and we have not forgotten these roots – it is important that we continue to support young people and give them opportunities to fulfil their potential. We currently have over 2,000 apprentices in training across our businesses. In November, we entered into a partnership with Mosaic, HRH The Prince of Wales’ mentoring charity. This will provide ex-offenders with transferable skills through a series of workshops and training programmes, ultimately leading to a work placement with Mitie. This scheme is overseen by the Mitie Foundation, our charitable arm, which focuses on creating opportunities for people of all backgrounds to join the world of work by raising aspirations and unlocking potential.
Since its establishment in 2013, the Foundation has supported careers events at more than 122 schools, and successfully helped 42 people into employment during the year. We encourage our people to take part in Foundation events when possible, with over 200 joining the Mitie London Revolution, a 192 mile cycle ride that raised over £28,000 for a new Business Development Academy with our education social enterprise partner, Working Knowledge.
We continue to actively promote diversity and were named as one of The Times Top 50 Employers for Women for the fifth consecutive year. We also successfully completed the Business in the Community Gender and Race Benchmark 2014, earning two gold and one silver awards.
In terms of the environment, we’ve set an ambitious target of reducing our carbon footprint by 35% by 2020, from a 2010 baseline. This year CO2 emissions remained constant at 0.63 tonnes per employee.
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Working with Mitie
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