Philips 2011 Annual Report Download - page 12

2 Our strategic focus 2 - 2
12 Annual Report 2011
2Our strategic focus
In a fast-changing world, we are committed to returning
superior value to our stakeholders. We will achieve this
through leadership in innovation, an absolute focus on the
customer, local market relevance, and operational
excellence, while costs need to be at least in line with our
competitors.
We aim to create value through a deep understanding of
our businesses and markets and by building sustainable
competitive advantage in each business. In doing so, we
will leverage the strengths of the Philips Group – e.g.
talented people, outstanding innovation capabilities, a
strong brand, a global footprint, leading market positions
and a solid balance sheet – to deliver global leadership and
benchmark performance.
Accelerate!
In 2011 we launched Accelerate! – our comprehensive
change and performance improvement program. The aim
of Accelerate! is to create an agile and entrepreneurial
Philips. A company with satisfied customers and
employees with fulfilling roles. A company that grows and
delivers consistent shareholder value. During the year we
managed to put many of our Accelerate! enablers in place:
• We are becoming increasingly customer-centric,
focused on meeting local market needs.
• We apply granular performance planning and
management to realize operating plans that are
resourced to win.
• We are transforming Philips from a predominantly
functionally orientated organization to one whereby we
seamlessly operate along integrated, lean end-to-end
customer value chain processes between global
businesses and local market teams, so that we deliver
with speed and excellence.
• We are reshaping our operating model for simplicity
and speed. The Philips Business System provides us with
a blueprint for the company’s way of working.
• We are establishing a growth and performance culture
in which people are eager to win, take ownership, and
team up to excel; our incentive and reward systems
recognize sustained performance and the right
behavior.
Seizing market opportunities
With a deep understanding of many of the longer-term
challenges our world faces – from aging populations to the
need for efficient energy usage and the desire for personal
well-being – and the innovative capability to address these
challenges, we strongly believe we can continue to make
a meaningful contribution to people’s lives.
Our strong position in many promising markets, coupled
with our innovation pipeline, powerful brand and engaged
workforce, puts us in an excellent position for the future.
Our sectors
We strive for a balanced portfolio of businesses that have
– or can attain – global leadership positions and deliver
performance at benchmark levels.
Healthcare: The future of healthcare is one of the most
pressing issues of our time. Philips Healthcare is
committed to providing meaningful innovations that
improve the quality of care, enhance patients’ lives and
enable the delivery of better outcomes at lower cost. Our
growth strategy is grounded in a fundamental belief that
clinical excellence and continuous innovation around the
patient experience can fundamentally change healthcare
as we know it. Our competitive advantage lies in our
clinical perspective, the broad clinical subject-matter
expertise within the company, as well as the deep clinical
relationships we have with our customer base. This allows
us to deliver solutions expertly tuned to the needs of the
clinician as well as the financial and operational needs of
healthcare administrators, payers, regulators and
purchasing organizations by enabling a connected and
holistic view of care delivery that tangibly and
transparently improves clinical outcomes.
Consumer Lifestyle: Across the world, consumers
want to maintain and improve their health and well-
being and that of their families. To achieve this, they look
for propositions that will improve their lives from brands
that they trust. Philips Consumer Lifestyle is on a journey
to become a leading player in health and well-being. We
have a global footprint, with an established presence in
both mature and growth geographies. We have a leading
global brand, which is highly trusted across the world.
Consumer Lifestyle makes a difference to people’s lives
by making it easier for them to achieve a healthier and
better lifestyle.
Lighting: Human life revolves around light. Light affects
our mood, improves our well-being, and enables us to
experience and achieve more. It is a vital part of making
our lives fuller, more productive and safer. Our Lighting