Philips 2008 Annual Report Download - page 12

Bring employee engagement to
high-performance benchmark
I am very pleased to report that we have made
significant advances in Employee Engagement – our
measure of the progress of our people initiatives.
... strong progress in employee engagement ...
The results of our 2008 survey exceeded expectations.
Our overall Philips score leaped from 64% to 69%
favorable – two points above our target for the year,
and closing in on the high-performance benchmark.
Our People Leadership Index, which measures the
effectiveness of our leaders in engaging people, also
rose by five points to a score of 69%.
‛because health and well-being matters
to people’
People’s needs remain the starting point for everything
we do. By tracking trends in society and obtaining
deep insights into the issues confronting people in
their daily lives, we are able to identify opportunities
and develop innovative solutions that are easy to
access and relevant to people’s needs and aspirations.
Philips must continue to stand for “sense and
simplicity”. That is what our customers should
experience, each and every day, in dealing with us.
Now more than ever, we need to redouble efforts
to fully understand our customers and markets,
so that we can identify and compete boldly – and
successfully – for new opportunities as they arise.
... further grow Philips as the leading brand in
health and well-being ...
We aim to further grow Philips as the leading brand
in the health and well-being market space. Health and
well-being is a theme that is becoming increasingly
relevant for society around the world, and it will be a
major driver of growth when the financial and economic
turbulence has subsided. It is also the glue that bonds
our businesses within Healthcare, Consumer Lifestyle
and Lighting.
Our Healthcare sector is a great example of how we
are building growth-orientated businesses with strong
leadership positions in both clinical and home healthcare,
as well as a growing presence in emerging markets.
In Consumer Lifestyle, we are focusing the business
on innovative lifestyle solutions for personal well-
being. We will continue to build upon existing
market-leading positions based on differentiation
and profitability, rather than scale. In addition, we
will enter new, higher-margin value spaces with a
particular focus on platforms such as healthy living,
personal care and home life.
In Lighting, we have established leading positions in
fast-growing areas such as LEDs and energy-efficient
lighting with a segment-based marketing approach.
Our task now is to strengthen our global leadership
by driving the transition to application-based solutions
to fuel future growth. Our strong IP position across
the solid-state lighting value chain – and the licensing
opportunities it brings – will further reinforce
this leadership.
... continue to embed sustainability throughout
our operations ...
We will also continue to embed sustainability
throughout our operations. Moving to this integrated
financial, social and environmental annual report
clearly illustrates this unified approach.
Staying the course
We are convinced that the strategic choices we have
made are the right ones. Our goals are ambitious and
they have become more challenging with the deterioration
in the macro-economic climate. However, these difficult
times call at most for a change of tactic, not a change
of strategy.
Therefore, our Management Agenda 2009 is all
about staying the course through this downturn. Its
three themes – Drive performance, Accelerate change
and Implement strategy – reflect the current reality,
where the prime focus will be on managing cash flow
and cost, while continuing to capture opportunities to
strengthen our position in the market. Pursuing these
goals – with a heightened sense of urgency – will
ensure the long-term health, growth and profitability
of our company. We have the strategy, portfolio,
financial strength and talent to succeed.
Philips Annual Report 200812
18
We care about...
8
Message from
the President
6
Performance highlights
14
Who we are
42
Our group performance