Philips 2007 Annual Report Download - page 10

Philips Annual Report 2007 13
We are also stimulating a culture where people are
encouraged to be ambitious and take calculated risks,
and where failure is understood to be part of learning.
We measure the progress of our people initiatives through
our annual Employee Engagement Survey. In 2007, the
response was 92%, up from 85% in 2006, and the results
show denite improvement. The Employee Engagement
Index gure rose to 64%, from 61% in 2006. Our goal is
to reach the high-performance benchmark of 70% by 2009.
We also use the Engagement Survey to gauge how our
people judge their leaders. Our People Leadership Index
– measuring 12 aspects relating to one’s direct manager –
rose to 64% from 59% in 2006, equally moving towards
the high-performance benchmark of 70%.
Vision 2010 − creating a simpler, stronger
and better company
In September 2007 we launched Vision 2010, organizing
Philips in three market-oriented sectors – Healthcare,
Lighting and Consumer Lifestyle – effective January 2008,
with the ambition to build a company with a signicantly
higher shareholder value by delivering on our target
to double EBITA per share by 2010 from our 2007
starting point.
Vision 2010 represents a step up of ambition in our drive
to become a truly market-driven, people-centric company
with a well-balanced portfolio of professional and consumer
businesses with attractive EBITA margins and effective
business models – one that has already demonstrated
resilience in a challenging economic environment.
Our sectors address specic yet interlinked markets,
with a strong focus on people and their health and
well-being, and they share a common brand that stands
for innovation delivered with “sense and simplicity”.
this combination of accretive acquisitions and share
buy-backs is the best way to create shareholder value.
I am also pleased to announce that, consistent with our
policy to pay out 40-50% of continuing net income as an
annual dividend, we are proposing to the upcoming General
Meeting of Shareholders to declare a dividend of EUR 0.70
per common share, an increase for the fourth year in a
row and a statement of our condence for the future.
Drive a culture of superior customer experience
by delivering on the brand promise and implementing
the Net Promoter Score measure in the company
In 2007, Philips was one of the ten fastest-growing brands
in terms of total brand value in the annual ranking of the
top-100 global brands compiled by Interbrand – a clear
sign that the brand’s core messages resonate with customers.
Our brand value rose 15% to an estimated USD 7.7 billion,
making Philips the 42nd most valuable brand in the world.
We drove the further deployment of the Net Promoter
Score (NPS) as our single key metric of customer experience.
NPS measures the answer to just one question: “How
likely is it that you would recommend this company/
product to a friend or colleague?” Brands with high NPS
scores tend to grow faster and more protably than their
competitors. At present, close to 50% of our key businesses
have industry-leading scores, and we aim to increase this
gure to 70% by 2010 – a signicant but vital challenge.
Be an exciting place to work and bring employee
engagement to a high-performance benchmark level
within 2 to 3 years
Philips is a fantastically exciting place to work. We offer
our employees excellent working conditions, energizing
career challenges and international development
opportunities. And we are unstinting in our efforts to
create a diverse and inclusive working environment, in
which all employees feel valued for their talents
and contribution.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements
“ Our sectors share a common brand that stands
for innovation delivered with ‘sense and simplicity’.”