A new version of Parker’s business system, the Win StrategyTM, has been unveiled under new company leadership. Originally introduced in 2001, the Win Strategy has been instrumental in transforming the Parker’s operations and optimizing performance.
“Competing and winning in today’s challenging global markets will require Parker to build on the strong foundation we have in place while setting a new course with strategies that take our performance to the next level,” said Tom Williams, CEO.
While many of the core principles of the strategy remain, new strategies are being implemented to improve speed and performance. Key goals under the new strategy include:
- Engaged People - high engagement and ownership by Parker team members drives exceptional performance.
- Premier Customer Experience - moving from a service mindset to creating a great customer experience enables growth.
- Profitable Growth - implement strategies to grow organically 150 basis points faster than the market.
- Financial Performance – top-quartile financial performance versus our diversified industrial proxy peer group, with year-over-year earnings growth.
“Total shareholder returns are highly correlated to year over year growth in earnings and return on invested capital,” added Williams. “Driving organic sales growth 150 basis points better than the market and leveraging that growth through higher segment operating margins will be key operational measures we use to drive shareholder returns. Numerous opportunities exist to drive better sales and margin performance.”
Key areas of focus aimed to fuel margin improvements include the introduction of a new Simplification initiative with opportunities to reduce organizational complexity across four areas: revenue complexity reduction, optimized organizational structure and processes, division consolidations, and reduced bureaucracy.
“Using the new Win Strategy as a guide to our actions and a yardstick for our progress, we are striving to achieve new financial and operational performance targets designed to reward Parker shareholders,” Williams concluded.