evolving our ways of working - imperial brands · 2019-12-17 · no shared services high fixed...

Evolving our Ways of WorkingJohn Jackson, Operating Model Transformation Director

2 |

Disclaimer

Certain statements in this presentation

constitute or may constitute forward-looking

statements. Any statement in this

presentation that is not a statement of

historical fact including, without limitation,

those regarding the Company’s future

expectations, operations, financial

performance, financial condition and

business is or may be a forward-looking

statement. Such forward-looking statements

are subject to risks and uncertainties that

may cause actual results to differ materially

from those projected or implied in any

forward-looking statement. These risks and

uncertainties include, among other factors,

changing economic, financial, business or

other market conditions. These and other

factors could adversely affect the outcome

and financial effects of the plans and events

described in this presentation. As a result,

you are cautioned not to place any reliance

on such forward-looking statements. The

forward-looking statements reflect knowledge

and information available at the date of this

presentation and the Company undertakes no

obligation to update its view of such risks and

uncertainties or to update the forward-looking

statements contained herein. Nothing in this

presentation should be construed as a profit

forecast or profit estimate and no statement

in this presentation should be interpreted to

mean that the future earnings per share of

the Company for current or future financial

years will necessarily match or exceed the

historical or published earnings per share of

the Company. This presentation has been

prepared for, and only for the members of the

Company, as a body, and no other persons.

The Company, its directors, employees,

agents or advisers do not accept or assume

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responsibility or liability is expressly

disclaimed. The material in this presentation

is not provided for tobacco product

advertising or promotional purposes. This

material does not constitute and should not

be construed as constituting an offer to sell,

or a solicitation of an offer to buy, any

tobacco products. The Company’s products

are sold only in compliance with the laws of

the particular jurisdictions in which they are

sold.

Imperial Brands Investor Day | June 2016

3 |

We Have a Big Opportunity…To build a better business

From a focus on making

great acquisitions…

…to building an integrated

high performing business

Quality

Agility

Discipline


4 |

To drive performance

160 markets

5 divisions

250 brands

2 supply functions

No shared services

High fixed costs

5 manufacturing regions

Inconsistent processes

We Have a Big Opportunity …To eliminate complexity and drive performance

250

brands350+ HR systems

Multiple market

support structures


Where we are coming from ….

5 |

Our operating model defines how we deliver our strategy

It’s how people,

structures, roles &

responsibilities,

processes & technology

drive performance

We are Changing our Operating ModelImproving agility and discipline


6 |

Our Evolving Operating ModelThree key objectives…

Drive

Operational

Excellence

Leverage

Global Scale

& Expertise

Deliver

Commercial

Success


Leverage Global

Scale and

Expertise

(Enabling Functions)

Drive

Operational

Excellence

(Manufacturing)

Deliver

Commercial

Success

(Sales & Marketing)

7 |

4 Regions

41 Factories

20 Clusters

160 Markets

Group

Manufacturing

Supply

and R&D

Group

Commercial

3 Divisions

Our Evolving Operating ModelDelivered through our new organisational model

Glo

ba

lL

oca

l


Leverage Global

Scale and

Expertise

Drive

Operational

Excellence

Deliver

Commercial

Success

8 |

Group

Manufacturing

Supply

and R&D

Group

Commercial

3 Divisions

4 Regions

41 Factories

20 Clusters

160 Markets

Our Evolving Operating ModelUnderpinned by new technology and processes

Leverage

Global Scale

& Expertise

Glo

ba

lL

oca

l


Leverage Global

Scale and

Expertise

Drive

Operational

Excellence

Deliver

Commercial

Success

9 |

How the Model WorksFocusing on winning with consumers and customers

Global Local

Tra

nsfo

rma

tio

n


Sales and

Marketing

Deliver

Commercial

Success

Win with winning

customers

How to win

Winning consumer

propositions

Where to play

Group marketing

Growth and

Specialist Brand

strategies

Migrated 26bn SE

20 clusters

Plans and support Markets

Sales Growth

Drivers

Saved £36m pa

Divisions

Clear strategic

roles

Growth Markets

Returns Markets

ITG Brands

10 |

How the Model WorksImproving our productivity

Global

Tra

nsfo

rma

tio

n


Enabling

Functions

Leverage

Global Scale

& Expertise

Building our

capabilities

Modernising our

ways of working

Leveraging our

Global Scale

Harnessing our

expertise

Shared services

at optimal cost

Centres of

expertise and

business partners

Technology

increasing

effectiveness

Upskilling

employees

11 |

How the Model WorksReducing cost and product complexity

Global Local

Tra

nsfo

rma

tio

n


Manufacturing

Drive

Operational

Excellence Optimise our

footprint

Efficient

procurement

practices

Reduce

organisational

complexity Simplify our

products

Streamlined

global

manufacturing

and supply

functionGlobal

procurement

Supplier base

reduced

by 20%

and savings

£25m

Focus on

larger, more

productive

factories

Reduce SKUs

and BoMs

SKUs reduced

by 20%Improvement in

factory

effectiveness

by 9%

Reduce overall

operating costs

12 |

How the Change Tracking Tool WorksFocusing on creating a change-ready organisation

Enables us to track

progress across the

business and reveals

how people feel about

key change enablers


Business

leadership

Team

leadership

Skills and

staffing

Systems and

processes

Teamwork Accountability

Passion and

drive

Fear and

frustration

Vision and

direction

Communication Understand

how our

people feel

about….

Risks and

roadblocksNavigateChanges taking

place

Business

performance

Benefits

realisationManage

13 |

Our Evolving Operating ModelExcellent progress with more change to come

160 markets

5 divisions

250 brands

2 supply functions

No shared services

High fixed costs


Inconsistent processes

Fewer bigger clusters

Focused market investment

Lean principles

Even more variable costs

Stronger portfolio

Optimised footprint

Global business services

Industry leading process execution

Our Past Our Present Our Future

8 integrated end-to-end processes

20 clusters

3 divisions

1 function

More variable costs

5 brand chassis


3 business services


evolving our ways of working - imperial brands · 2019-12-17 · no shared services high fixed...

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