OUR TEN YEAR JOURNEY - Murphy Group · GRP-JMS--XX-PL--000C01A1 THE NEXT TEN YEARS As one of the most recognised names in the industry, Murphy has a proud history of delivering major

OUR TEN YEAR JOURNEY

WORLD-CLASS INFRASTRUCTURE

Our vision

IMPROVING LIFE BY DELIVERING WORLD CLASS INFRASTRUCTURE

Our values

Our vision is reinforced by a set of core values that shape everything we do. They help us to manage our relationships with all of our stakeholders and will

support us through the challenges of future growth.

One family – one team – one Murphy We work collaboratively to provide a seamless, integrated service to our clients.

Always deliver Our ‘can do’ attitude means that we aspire to deliver all of our projects on time,

on budget and to high quality.

Never harm We protect people, the environment and communities no matter

where we are or what we are doing.

Continuous improvement Innovation is integral to our success and we look to make improvements

in all aspects of our work. We continuously strive to improve.

Integrity – respect for all We conduct business in a transparent, honest and professional manner.

We act with integrity and are trusted by all of our stakeholders.

GRP-JMS-ZZ-XX-PL-Z-0003_C01_A1

THE NEXT TEN YEARS

As one of the most recognised names in the industry, Murphy has a proud history of delivering major infrastructure programmes in the UK, Ireland and internationally. We have built an enviable reputation with our clients for the safety, quality and reliability of our services, largely self-delivered.

However, today’s market presents many challenges and opportunities and Murphy’s position in it is changing rapidly. We need to change to respond to these opportunities and to build upon our heritage. Over the next few years we expect there will be further industry consolidation of our competitors, leaving five leading construction groups with revenues of over £5bn.

To maintain our independence and to mitigate the risk of Murphy being marginalised during this consolidation we must urgently address the challenges and strengthen our short, medium and long term position in the market by increasing our relevance, resilience and quality of earnings.

Therefore, we have developed our 10 year vision, our values and aligned our objectives in our business plan. Our plan addresses what we have to do to achieve our vision and details the measures to improve our business, especially during 2016 and 2017, a period we refer to as the transition period. This will lead to demonstrable business improvement in 2018 and beyond.

Our plan offers a confident view of our ability to achieve the ultimate goals of our plan. By 2025 Murphy will be:

• Operating as an international business that has scale, relevance and influence in its core markets.

• Taking a stake in and delivering assets and services broadly across the key infrastructure sectors - safely, reliably and sustainably with respect for the environment.

• Offering long term, stable career paths for our people and being an attractive trading partner for our supply chain.

• Generating sustainable revenues of £2bn pa and an industry leading profit before tax of 10%, with a financial position of £500m net assets and £300m net cash.

Our plan retains and builds upon all of the excellence we already have within Murphy and strengthens those areas where we are not performing as well as our peer group.

BY 2025:Operating in our chosen international markets

Broad deliveryacross infrastructure sectors

Deliver safely, reliably and sustainably with respect for the environment

Sustainable long term careers for our people

Generate sustainable revenues of

£2bnper annum



OUR OBJECTIVES

Objectives that support our planned and sustainable growth include:

• We will deliver a fully integrated ‘One Murphy’ with clear points of access for our clients and stakeholders.

• We will evolve into a matrix-based organisation to deliver strong, well supported, operational performance and reinforce our values to our people as an integrated, open and collaborative business.

• We will invest in long-term career paths for our employees, strengthen our talent pool and be an attractive trading partner for our supply chain.

• We will deliver steady growth in revenue from £680m pa in 2015 to £2bn pa by 2025.

• We will secure work strategically on a national scale as a Tier 1 provider in our four core market sectors of water, power, rail, and natural resources. Where appropriate we will operate as a Tier 2 provider, for example using our specialist capabilities in non-core sectors.

TRANSFORMING INTO ONE MURPHY

By transforming our organisation and embracing collaboration we will realise overhead efficiency savings, as well as supply chain gains. We will benefit from much more selective bidding within our core sectors of water, rail, power and natural resources. Our clients will benefit from a better integrated and consistent service that will over time elevate our standing in our chosen sectors.

We have already started work on our transformation, by strengthening our existing teams through some key appointments, especially in our support functions. We will continue our investment in our people, our systems and resources to ensure the business is capable of accommodating our sustainable growth over the next ten years. Our planned growth in revenue and profit before tax in the next ten years is broadly shown in the graph opposite.

Our organisational change into a matrix-style organisational structure will liberate the advantages of team working. We already demonstrate excellent team working in delivering successful projects for our clients, however our current structure does not actively promote the benefits of truly integrated teamwork. We need to change to meet our clients’ increasing expectations and for us to remain competitive.

Deliver‘One Murphy’

Reinforce our values to our people as an integrated, open and collaborative business

Invest in long-term career paths for our employees

Become an established Tier 1 provider in our four core market sectors of water, power, rail, and natural resources

Increase our investment activities

Improve our profitability across a portfolio of products to at least 5% net PBT

10%growing to

BY 2025:Direct delivery of works to strengthen relationships with our clients


The new structure will promote the sharing and adoption of best practice, knowledge and expertise across Murphy that will raise the bar even higher and improve our overall performance. It will also release our pool of talented people to work on projects across various sectors and territories, and it will provide better career pathways and opportunities for our people.

The two year transition period during 2016 and 2017 will allow us to establish and embed the additional support that is needed to achieve our sustainable growth over the next ten years. Rather than introducing wholesale change that can be daunting, and potentially more damaging, we will retain all of the good things we currently do and address those areas that are not quite ready to support our growth objectives.

We will do this by introducing better systems and additional support wherever required to ensure that within the transition period the business is organised to become more efficient and to enable it to grow successfully. We will also remove those processes and procedures that have outlived their usefulness or don’t add any value so that across the business we all operate to a set of common standards and processes that are fit for purpose in the 21st century.

We understand that there will be some turbulence as we transform Murphy. We need to carefully communicate and manage the transformation so that we manage the expectations of our people, our clients and our other stakeholders to ensure a successful transformation.

Our new matrix style structure is well proven in other successful organisations and will provide the flexibility required to properly respond to the challenges and opportunities our chosen markets will provide during the next ten years.

“OLDCO” REVENUE

“NEWCO” REVENUE

10 YEAR PLAN TIMELINE

£ Revenue

Years

100%

“NE

WCO

” TR

ADIN

G

CEAS

E “

OLD

CO”

TRAD

ING

£2bn

£1bn

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1

0

2

3

4

5

6

7

8

9

10

% PBT

TRANSITION PERIOD

2016 & 2017

Our transition during

will allow us to establish and embed the additional support that is needed to achieve our sustainable growth over the next ten years.

“Improve profitability across our portfolio of products & services to an average of 10% PBT with a minimum of 5% PBT

”


IDENTIFIED DEVELOPMENT NEEDS

In recent years we have secured too many high risk/poor profit projects, and have operated an expensive divisional structure which has seen us doubling up on work.

So, our vision, values and objectives for the next 10 years will ensure that we are fit for purpose in the 21st century as we move to a more appropriate and sustainable risk/reward profile.

Whilst our revenue growth ambition is modest given the significant UK and international infrastructure growth opportunities within the plan period, the drive for significant profit improvement will require change to what and how we sell, how we mobilise, how we deliver operationally and how we support these.

It is likely that change will touch all who work in our business, though most will see little difference on a day to day basis. It is also important to understand that increasing our profitability will be achieved from a high number of small incremental improvements, rather than one or two big hits to our cost-base.

Our journey on profit improvement will (within the plan period) include action in the following areas:

• Accepting that 10% profit is across the Group’s portfolio and that not all of our business activities can realistically ever expect to deliver profitability at this level.

• Reducing the number of business units.

• Securing fair value for our more compelling market propositions e.g. engineering, assured self delivery.

• Taking overhead and profit off the negotiating table by focusing upon total project cost.

• Better risk management, mitigation and pricing.

• Raising market perceptions of Murphy and its capabilities.

• Saying no when our commercial needs are not being met.

• Balancing our operational strength with professional and lean support functions.

• Multi-sector delivery centres.

“Our vision, values and objectives for the next 10 years will ensure that we are fit for purpose in the 21st century as we move to a more appropriate and sustainable risk/reward profile. ”


• Securing better value from our supply chain.

• Streamlining and simplifying all working processes – both direct and support.

• Mobilising new projects brilliantly – always right first time.

• Elimination of re-work, waste, duplication and spurious controls and authorisations.

• Crystal clear personal accountability for KPIs.

• Crystal clear overhead cost allocation between projects, regions and Group.

• Improved control and information systems informing early action on projects, in regions and at Group level.

• Increased rigour in identifying and securing/rejecting new business opportunities.

• Improved project controls and information systems.

• Attracting, developing and retaining the best industry talent.

• Investment in professional business development capabilities.

• Sustaining our more profitable property business interests.

• Taking an equity stake in infrastructure assets where we also provide the delivery and maintenance service, i.e. PPP/PF2.

As you can see there are many areas for us to work on to ensure our success. The transition period during 2016 and 2017 is crucial to this success and the earlier we can get improvements properly embedded into our business the earlier we will start to realise the benefits.

“The transition period during 2016 and 2017 is crucial to this success...

”


CORE MARKET SECTORS

WATER - RAIL - POWER - NATURAL RESOURCESWe chose our core market sectors based not only upon our own expertise and experience but on the published commitment of our clients and prospective clients to continue to invest in their infrastructure. Infrastructure is fundamental to a successful economy and the Government understands the economic benefits of continued investment in world class infrastructure and has committed to such investment. Combined with our regional opportunities and our specialist capabilities we have chosen sectors that support our own objectives.

We will be able to react to actual market sector conditions by transferring skills and resources across sectors, for example as one sector or territory becomes more buoyant than others.

SECTOR DIRECTORS

To support this focus we will appoint four new sector directors, one for each core sector of water, rail, power, and natural resources. As recognised specialists in their sector they will be the ‘face of Murphy’ for their respective sectors, acting as ambassadors for Murphy in everything they do.

Their primary role is to win work, maintaining their deeper understanding of their specific market and respective client drivers, translating these into opportunities and building Murphy’s market position through proactive engagement, all built upon our reputation for excellence and the high quality of our delivery. They will engage with regional operations and our Group support functions throughout the project lifecycle.

The sector directors will also play a leading role in developing strategic partnerships with key clients. They will encourage us to maintain sustainable, long-term relationships irrespective of location, and will develop a stronger pipeline of work opportunities. They will nurture relationships across the industry to generate new business opportunities, strengthen existing relationships, drive increased market share and ensure that Murphy creates new propositions for the market and our key clients.

WINNING WORK

We will be far more selective about the projects we bid, with a central bid team operating at Group level who will work on larger, strategic bids and local resources to work on everyday work winning activities. We will ensure that engineering is at the forefront of our proposition as we communicate our

“We will be able to react to actual market sector conditions by transferring skills and resources across sectors, for example as one sector or territory becomes more buoyant than others.

”


integrated offer and activities. As a result of this focus we expect our bid win conversion rate to improve our profitability as we concentrate upon opportunities we have a better chance of winning.

Focusing on the four core sectors of water, rail, power and natural resources, and on activities in non-core sectors using our specialist capabilities, including development and PF2/PPP investment, will enable us to raise our profitability across the portfolio to a blended 10% by 2025. It will require all aspects of our business to contribute by continuously improving the way that we work, by being innovative, and by removing waste and duplication from within the business. It is vital that we all contribute by realising efficiencies, reducing costs, and enhancing profitability by delivering high quality services for clients who value our integrated offer.

We are already successfully working in our four core sectors, but our aim is to become known as the organisation that can undertake all of the elements of a project in-house. We are a unique business in our approach to teamwork, with a self-delivery model that means we can carry out all aspects of project work without needing to rely on external subcontractors. Our new organisational structure will make it clearer to existing and potential clients that we have all the necessary project capabilities in-house.

MATRIX STYLE ORGANISATION

There will be a reduction in the number of profit and loss reporting divisions in the new organisational structure that is designed to encourage internal collaboration and remove unnecessary duplication. Projects will be better managed through the new matrix structure, as they will formally sit within a specific region but will also have a direct report into Group, where they will be professionally supported by Group service functions. This will help us to manage our overheads and project preliminaries more efficiently at both regional and Group levels by bringing together business units where there is a natural crossover.

Our employees will no longer work purely for one division or department, or independently of other teams. Instead the management structure of project - region - Group will ensure that we all work for ‘One Murphy’, rather than for our own projects, region or division. This will naturally help to unite employees bringing us all into one global team, all working together and for each other.

Our new and improved intranet is being introduced in 2016 and we expect it to stimulate better knowledge sharing across the business as well as reinvigorate our innovation as our talented people start to work together more often.

“Our employees will no longer work purely for one division or department, or independently of other teams. Instead the management structure of project - region - Group will ensure that we all work for ‘One Murphy’

”


GROUP

WATER

POWER

NATURALRESOURCES

RAIL

SECTOR DIRECTORWATER

SECTOR DIRECTOR POWER

SECTOR DIRECTORNATURAL RESOURCES

REGIONAL BUSINESS DEVELOPMENT

MANAGERS

REGIONAL OPPORTUNITIES

SECTOR DIRECTORRAIL

NORTH SPECIALISTINTERNATIONAL SOUTH

OPERATIONS NORTH BUILDING & DEVELOPMENT

PIPELINES TESTING SERVICES

MARINE

PIPELINES

OPERATIONS SOUTH

OPERATIONAL DELIVERY

SPECIALIST CAPABILITY SUPPORTFUNCTIONAL SUPPORT

FINANCE TRANSACTION ADMIN

BUSINESS DEVELOPMENTCOMMERCIALENGINEERING ESTIMATING

HUMAN CAPITAL HSQE

IT

EARTHWORKSRAIL

POWER TRANSMISSION SYSTEMSUTILITY

CONNECTIONSPIPELINE TESTING

SERVICESPIPELINES

PLANT & TRANSPORT

LEGAL MARKETING &

COMMUNICATIONSPLANNING

PROJECT CONTROLS PROCUREMENT

PROJECT MANAGEMENTDESIGN

BIM

OVERHEAD &UNDERGROUND HV

CABLINGWATER & POWER

DISTRIBUTION NETWORKSWATER TREATMENT

TUNNELLINGELECTRICAL

PLANT & TRANSPORTMARINE

STRUCTURAL STEEL FABRICATION HIGHWAYS &

STREETWORKSBRIDGES

PILING & GROUND ENGINEERING

STRUCTURAL STEEL FABRICATION


Our new structure will also benefit our clients who will have access to a broader pool of talent and expertise, as well as from any cross-sector improvements as innovation and great ideas are transferred between the different sectors. This will in turn help us to secure and retain more work with our chosen clients.

The following graphic illustrates our new matrix organisational structure and the relationship between Group, regions, specialist capability support and functional support. It shows how all elements of our business can work in any of the core sectors, as well as in our regional opportunities, which encompass all of our other market sectors such as building and development.

Regional opportunities will be supported by regional business development managers who will focus their efforts on securing local work using their local knowledge and relationships.

Professional functional support works for the entire business ensuring we can achieve our objectives as we grow over the next decade.


GROUP

WATER

POWER

NATURALRESOURCES

RAIL

SECTOR DIRECTORWATER

SECTOR DIRECTOR POWER

SECTOR DIRECTORNATURAL RESOURCES

REGIONAL BUSINESS DEVELOPMENT

MANAGERS

REGIONAL OPPORTUNITIES

SECTOR DIRECTORRAIL

NORTH SPECIALISTINTERNATIONAL SOUTH

OPERATIONS NORTH BUILDING & DEVELOPMENT

PIPELINES TESTING SERVICES

MARINE

PIPELINES

OPERATIONS SOUTH

OPERATIONAL DELIVERY

SPECIALIST CAPABILITY SUPPORTFUNCTIONAL SUPPORT

FINANCE TRANSACTION ADMIN

BUSINESS DEVELOPMENTCOMMERCIALENGINEERING ESTIMATING

HUMAN CAPITAL HSQE

IT

EARTHWORKSRAIL

POWER TRANSMISSION SYSTEMSUTILITY

CONNECTIONSPIPELINE TESTING

SERVICESPIPELINES

PLANT & TRANSPORT

LEGAL MARKETING &

COMMUNICATIONSPLANNING

PROJECT CONTROLS PROCUREMENT

PROJECT MANAGEMENTDESIGN

BIM

OVERHEAD &UNDERGROUND HV

CABLINGWATER & POWER

DISTRIBUTION NETWORKSWATER TREATMENT

TUNNELLINGELECTRICAL

PLANT & TRANSPORTMARINE

STRUCTURAL STEEL FABRICATION HIGHWAYS &

STREETWORKSBRIDGES


STRUCTURAL STEEL FABRICATION


Matrix organisation promotes team working across disciplines and territories providing a better service for our chosen clients.

Group provides strategic leadership and support.

Four trading centres for operational delivery.

Four core infrastructure market sectors to provide the focus and the platform for our planned growth.

Four new sector directors help to win work for the regions in their respective market sectors.

Regional opportunities includes all non-core sector work.

Specialist capability support work across sectors and differentiate Murphy from our competitors


CORE SECTOR PLANS

Data provided by industry forecasters confirm that water, power, rail and natural resources will be key sectors for us over the next ten years. They have the required scale, opportunity and development potential, and our current sector plans confirm this will provide the platform for our growth for the next ten years.

Other sectors such as aviation, highways and nuclear will also have significant opportunities to support our growth via major projects. We will consider each major project on its own merits to see if it supports our objectives.

Clients in our core sectors are largely keen to work with their delivery partners (e.g. Murphy) to positively influence the societal impact of their programmes and projects. Our clients also tend to be focused on project outcomes and on the performance of their assets. We will always seek to align ourselves with our clients’ specific objectives as this usually improves our own outcomes.

We will continue to plan and invest in the essential areas of sustainability; health and safety; local employment; UK procurement; and apprenticeships and skills development. As a large direct employer and service provider with a long-term strategy of infrastructure delivery, we are already very well placed to support our clients’ strategic objectives.

Our plans for delivery in our core sectors will be led by the sector directors who will refine our existing sector plans. We are already well established in the core sectors although we do need to raise our standing within our peer group as we can be considered by some clients as just a very good Tier 2 provider and we want to change this perception.

The following provides a snapshot of each of the four core sectors and is drawn from our detailed sector plans that describe where our future work opportunities will be coming from.

“As a large direct employer and service provider with a long-term strategy of infrastructure delivery, we are already very well placed to support our clients’ strategic objectives.

”


WATER

Water has been a very good sector for Murphy and success in previous asset management period (AMP) cycles has cemented our reputation as a strong delivery partner. The key to future success in the water sector is both to strengthen our market position, and to secure more complex work that provides higher profits and that is of strategic importance for our chosen clients.

Our plan recognises the need to be less reliant on just the municipal water sector. We have already begun to identify target agencies and clients in the broader water sector including industry, ports and marine, and environmental flood alleviation. By broadening our client base we will be less susceptible to the downsides of the five-year AMP cycle within the regulated market.

During the next three years we will focus on ensuring that we capitalise on our current capabilities through promotion of our niche services, for example to ensure the growth of Pipeline Testing Services into a key water sector specialist service.

To achieve our required growth we will continue to support our existing clients and will target new clients including Yorkshire Water; Severn Trent Water; South West Water; and Affinity Water, as well as targeting entry into new territories in Ireland, Scotland and Wales.

We will also start our preparations for the regulated AMP7 procurement process to ensure that we are well positioned to fully support our chosen clients when the procurement process begins.

“During the next three years we will focus on ensuring that we capitalise on our current capabilities through promotion of our niche services, for example to ensure the growth of Pipeline Testing Services into a key water sector specialist service. ”


RAIL

We have a long and distinguished record of delivering difficult rail projects and we understand the complexities involved in all types of railway construction. Over the next ten years, the UK rail sector will benefit from unprecedented levels of planned growth, underpinned by a Government commitment to boost the national economy by investing in transportation, including high speed rail.

Since privatisation 20 years ago, passenger kilometres and journeys have more than doubled. This growth is set to continue well into the future, with train operators and Network Rail planning to accommodate an extra 400 million rail journeys on the mainline network by 2020.

Several major new rail investment projects amounting to billions of pounds are already underway or planned, including Crossrail 1 & 2; Thameslink; Intercity Express Programme; Edinburgh to Glasgow Improvements Programme; and High Speed 2.

To meet our growth objectives we will need to combine our existing rail operations and take a national approach to work winning that will provide consistency across the UK market.

A key strength of our rail business is our ability to understand our clients’ key drivers and their required outcomes. Our ability to deliver directly and to respond quickly are positives for our clients but we do need to work more closely with our clients during the earlier stages of their projects to demonstrate our capabilities and capacity, raise their confidence levels in Murphy, and then continue to deliver excellence on site.

We will develop our capabilities to offer full turnkey solutions and will strengthen our pre-construction and project management capabilities to transform Murphy from being a follower, to being recognised as leading edge by our rail sector clients.

“To meet our growth objectives we will need to com-bine our existing rail operations and take a national approach to work winning that will provide consistency across the UK market.

”


POWER

We have a successful and nationally established infrastructure for delivering complex power systems, where we engineer project solutions on a turnkey basis. Our success has been built on repeat business from a small pool of clients, although these comprise all of the major UK transmission, distribution and rail operators.

To meet our growth objectives we will increase our market share in the generation, transmission, distribution and transportation sectors by increasing our activity levels with our existing major clients. We will continue to invest in upskilling and training to respond to the requirements of our existing clients so that we can carry out more of their work for them.

We will target specific opportunities in the new nuclear and renewable energy sectors at more favourable profit levels, and especially where our existing capabilities can help clients to close the probable capacity/skills gap issues that the industry expects.

Energy security is one of the Government’s highest priorities and as well as securing generation of electricity, resilient networks are critical for energy security as they are the vital arteries that carry reliable power to communities across the UK. There is a need to rebuild the UK’s energy networks to ensure future resilience. The networks also need to be expanded to provide capacity for new types of low carbon energy generation such as offshore wind, tidal lagoons, hydro-electricity and new nuclear energy. The renewable energy market invariably sites new facilities in locations that do not already have the necessary infrastructure for onward distribution and so provide opportunities to provide new infrastructure.

The agreements made at the recent 2015 UN Climate Change Conference held in Paris will provide further opportunities in the power and natural resources sectors as our Government acts upon the commitments. We are well placed to support our clients in meeting these commitments.

“There is a need to rebuild the UK’s energy networks to ensure future resilience. The networks also need to be expanded to provide capacity for new types of low carbon energy generation such as offshore wind, tidal lagoons, hydro-electricity and new nuclear energy. ”


NATURAL RESOURCES

The natural resources market remains a sizeable market for Murphy comprising mainly of oil and gas, and mining. The sector will continue to invest in and renew its infrastructure assets to service ongoing demand both within the UK and internationally.

The need for energy will continue to grow year on year due to the growth in the world’s population and as countries mature economically, with the greatest surge in demand coming from the transportation sector and from household consumption.

A significant proportion of the existing global infrastructure for extracting, transporting, processing, storing and distributing oil and gas is reaching the end of its useful life as much of it was established in the post-war era. This provides a variety of opportunities for Murphy from decommissioning through to maintenance and renewal programmes.

To meet our enhanced profitability and revenue growth objectives our share of the natural resources market needs to grow year-on-year over the next ten years. In order to achieve the forecast revenue growth and increase our market share, we will focus on improving our relationships with our existing key clients. We will also focus on identifying possible new work streams which match our financial ambitions, and continue to research possible new territories which provide opportunities to deploy our unique products and services both in the UK and internationally.

Across the natural resources sector there is a common theme during procurement to transfer risk (and therefore some increased opportunity) from client to contractor. Clients increasingly want to reduce their interface with contracting entities, with full Engineering Procurement Contractor (EPC) type contracts now being the norm.

We will need to strengthen our commercial functions to mitigate some of the increased risk. This transition also supports our objective of forming key joint ventures and partnerships with selected key partners to offer enhanced services for our clients.

“The need for energy will continue to grow year on year due to the growth in the world’s population and as countries mature economically, with the greatest surge in demand coming from the transportation sector and from household consumption.

”


FUNCTIONAL SUPPORT

Our Group support functions underpin everything we do as a business, from winning profitable work, to mobilising right first time, through to assured operational delivery.

Efficient and effective support functions facilitate efficient operational delivery for our clients. Some of our competitors have a clear competitive advantage over us in some functional support areas and we need to swiftly close the gap.

We have identified those areas that require investment to ensure that they are fit for purpose in the 21st century and are able to support our planned growth over the next ten years. We have already started to address these areas by providing additional support and investment and by making some key appointments. To achieve our vision it is vital that all functional support is aligned with our objectives and is able to support the projects, regions and Group so that they can operate efficiently.

Many of our business improvement initiatives during the transition period are within functional support areas so that by 2018 we will have closed the gap on our leading-edge competitors and this will help drive our sustainable growth.


SUMMARY

We have already undergone a period of change in leadership and some organisational change and we understand that this can be unsettling in a successful business that has grown with relatively few acquisitions. We are very proud of our heritage and will strive to maintain our precious ‘One Murphy’ ethos. But we are an even bigger family now and we will continue to grow over the next decade to ensure that we are not marginalised as the construction industry consolidates.

To ensure our future success we will provide an environment where we are all able to work together as ‘One Murphy’, irrespective of discipline or territory. Our matrix style organisational structure will allow us to work together as never before to achieve our objectives. We already demonstrate superb teamwork on our projects for our clients and now is the time for us to harness the power of that teamwork to secure our own futures together.

There will be better career pathways for us and improved training and development opportunities to allow us to respond to our client’s requirements. There will be more flexibility and the ability to work in different sectors and territories as we respond to the peaks and troughs of our chosen sectors.

The next two years will be different as we all get used to the changes but most of the change is based upon us working smarter together, streamlining our processes and procedures and investing in technologies and resources to make our working day more efficient and fit for purpose in the 21st century. During the transition period we will all be working together to embed improvements throughout Murphy so that we can support our clients, build upon our heritage and enjoy future success as part of One Murphy.

“We are very proud of our heritage and will strive to maintain our precious ‘One Murphy’ ethos. ”


NOTES


For further information on our journey, or if you have any comments, queries or suggestions please contact our communications team:

E: [email protected] T: 020 3757 1272

BY 2025:Operating in our chosen international markets

Broad deliveryacross infrastructure sectors

Deliver safely, reliably and sustainably with respect for the environment

Sustainable long term careers for our people

Generate sustainable revenues of

£2bnper annum


Deliver‘One Murphy’

Reinforce our values to our people as an integrated, open and collaborative business

Invest in long-term career paths for our employees

Become an established Tier 1 provider in our four core market sectors of water, power, rail, and natural resources

2016 & 2017

Our transition during

will allow us to establish and embed the additional support that is needed to achieve our sustainable growth over the next ten years.

“To ensure our future success we will provide an environment where we are all able to work together as ‘One Murphy’, irrespective of discipline or territory. Our matrix style organ-isational structure will allow us to work together as never before to achieve our objectives. We already demonstrate superb teamwork on our projects for our clients and now is the time for us to harness the power of that team-work to secure our own futures together.

”

Increase our investment activities

Direct delivery of works to strengthen relationships with our clients

Improve our profitability across a portfolio of products to at least 5% net PBT

10%growing to

BY 2025:

Documents

OUR TEN YEAR JOURNEY - Murphy Group · GRP-JMS--XX-PL--000C01A1 THE NEXT TEN YEARS As one of the most recognised names in the industry, Murphy has a proud history of delivering major