1. Develop the customer proposition and
experience
We are passionate about developing the best
proposition for our customers, by building on our history of
innovation and resolute customer focus. This includes expanding our
product range, developing our advice capability which is a
fundamental part of the value we provide to our customers and
endeavour to treat customers fairly everywhere.
Progress 2010
- Conducted strategic reviews to identify core competencies and
best market opportunities for growth
- Board agreed a set of customer metrics across the business
- Started to close product gaps and developed a clear path for
more product sharing
- Begun to close distribution gaps (launched iWYZE: a direct
short-term insurance offer between Mutual & Federal (M&F)
and Old Mutual (SA), and opened 117 Old Mutual Finance branches in
South Africa over the last 2 years)
2010 trend
2011 priorities
- Improve the customer experience across all markets
- Expand and improve the product proposition
- Expand and improve our distribution capability
- Develop and use meaningful customer information to better serve
our customers
- Continue to build and strengthen the Old Mutual brands
2. Deliver high performance in all business
units
To ensure that we provide value to shareholders
and customers, we need to drive high performance in our businesses
by delivering profitable growth, operational efficiency, and by
optimising risk and return.
Progress 2010
- All BUs achieved and exceeded their profitability targets (with
the exception of US Asset Management)
- On target to achieve cost reduction & RoE targets
- Business units continue to deliver their improvement programmes
(e.g. M&F step-change, Wealth Management transformation)
- Improved relationships with key stake holders (Financial
Service Authority (FSA), Reserve Bank, South African Government
& Reserve Bank and governing bodies in Sweden)
- Old Mutual (SA) achieved and Nedbank maintained Broad-Based
Black Economic Empowerment level 2 status; M&F achieved level 3
status and Nedbank recognised as the most sustainable bank in
Africa
2010 trend
2011 priorities
- Deliver 2011 business plan
- Secure plans to pay off £1.5bn of net debt
- Continue to drive strategic transformation in our business
units
- Continue to drive profitable growth
- Build an Investment Management business leveraging our existing
capabilities
3. Share skills and experience across the
Group
We will use our capabilities in South Africa and
around the world to drive revenue and cost improvements across the
Group, by leveraging policy administration capabilities in South
Africa, driving global IT and procurement synergies and sharing
product development ideas.
Progress 2010
- Key appointments made to drive sharing of skills (Heads of IT,
Product & Distribution in Long-Term Savings (LTS))
- Clear implementation plan developed for sharing product across
LTS
- LTS IT synergy plan ready for implementation
- Created IT and administration jobs in South Africa to support
the Retail Europe business unit
2010 trend
2011 priorities
- Deliver the Long-Term Savings IT plan and continue to improve
operational efficiency across the Group
- Build strong functional communities across the Group
- Deliver the Group Intranet
- Implement a framework to increase international mobility for
employees
4. Build a culture of excellence
A key to our success is that we demand and reward
excellence in leadership, teamwork and delivery of results - for
all our people. This includes defining and embedding a high
performance leadership model, against which we can assess, develop
and remunerate our leaders.
Progress 2010
- Launched the Group Vision and Strategy
- Implemented the Group Operating Model (GOM)
- Launched our ACT NOW! Leadership actions
- Agreed consistent performance management across the Group and
implemented consistent incentivisation across LTS
2010 trend
2011 priorities
- Continue to build strong executive teams in all our business
units and develop the next generation of young leadership
potential
- Align executive performance management and remuneration across
the Group
- Measure the shift towards our ACT NOW! Leadership actions by
implementing the Old Mutual Group Culture Survey
- Embed risk management as a value driver across the Group
5. Simplify our structure to unlock value
To deliver the full value of the Group to
shareholders we need to optimise our structure. This means that we
will exit non-core and sub-scale businesses, reduce exposure to
businesses that fall outside our Group risk appetite, run-off
non-disposable assets for value and optimise our structure for
strategic, regulatory, capital and governance purposes.
Progress 2010
- Substantially improved FGD (Financial Group Directive)
surplus
- US Life sale close to completion
- Stabilised the Bermuda business
- Commenced exploring an IPO (Initial Public Offering) for US
Asset Management
2010 trend
2011 priorities
- Complete the sale of US Life
- Explore the partial IPO for the US Asset Management business
unit
- Continue to manage the run-off of the Bermuda business to
reduce risk to the Group
- Hold business units accountable against operational targets and
risk appetite
