Transformation Programme

Our Plan for change

We have launched a transformation programme to enhance customer focus, improve competitiveness and drive investment in sustainable growth.

Operational excellence

Our future success will be built on operational excellence – doing what we say we are going to do, and underpinned by continued operational and financial discipline.

To respond to a changing market environment, we have reorganised the company, establishing new businesses responsible for our customer relationships, contract delivery and securing orders jointly with Business Development. Enabling functions provide support, in particular the dynamic resourcing of people and assets from across QinetiQ.

Our scientists, engineers and operations community will be transferred to the new structure during the year, supported by an effective sales and operational planning process, enabling us to resource as one company. By improving productivity there is potential to deliver efficiencies that will provide better value for money for customers and headroom for careful investment.

In addition to driving efficiency and productivity, we have established a technical excellence function to improve project delivery.

We are positioning QinetiQ for the future through an integrated business planning process, the output of which will be a robust plan. This is supported by a new approach to performance management which will ensure every employee across the company has clear objectives aligned to our strategy that support the effective delivery of our plan. We have also established a Leadership Community at QinetiQ for the first time, bringing together the top 100 leaders every month to ensure we are focused on our business performance.

Business winning

Customer requirements are not only changing, they are also getting more demanding. There is a need to improve our business winning skills in order to thrive in an increasingly challenging market, so we have instigated a programme to develop the skills of our sales teams, bringing in experienced hires where required. We also need to improve our knowledge of home and international markets; for example in August we appointed a new CEO for OptaSense who brings more than 20 years experience of working in the oil and gas sector.

We have launched a new process for bidding and winning strategically important corporate campaigns, making the best use of the skills that are available across the company.

As part of the reorganisation of the company, we have created an International business to deliver our products and services in international markets. It incorporates businesses with a significant international footprint and those with international growth potential.

Customers outside our UK, US and Australian home markets are unlikely to know QinetiQ, so we are also improving the visibility of our brand through targeted, cost effective marketing – particularly in European countries such as Belgium and Sweden where we already have a presence.

Investing in our future

We are driving savings through improved efficiencies and greater agility which will ensure we remain one step ahead of the competition and also create headroom so that we can invest in our future. This will allow us to invest carefully in research and development, improve skills and processes, take and manage risk more effectively on our customers’ behalf, and pursue campaigns to grow the company.

The key enabler to the themes across our markets is innovation, not just novel technologies but also innovation in products, services and business models. By working in partnership with our customers we can propose innovative solutions to meet their emerging needs. For example, the £153m contract renewal for aircraft engineering services represents a new way of doing business with the MOD under which we are measured and paid on results and outputs rather than inputs. Last summer, we launched a new Internal Research and Development (IRAD) programme for QinetiQ led by our Chief Technology Officer and guided by an Innovation Steering Board to ensure that projects are customer-driven and properly controlled. This programme will develop future services and products using investment funded through cost savings across the company.

Current projects include OptaSense applications in the rail industry, next generation robotics and test and evaluation services.

QinetiQ has considerable breadth and depth of technical expertise; we are working to integrate these core competences and connect them with customer needs to win market share. The strength of our balance sheet enables us to invest in our core competences such as test and evaluation, with capital expenditure likely to increase further as we continue to invest in the Long Term Partnering Agreement (LTPA) and other long-term contracts.

Operational excellence

Driving integrated business planning
Dynamic resource management
Streamlining processes

Business winning

Created an International business
Focusing on campaigns
Upskilling teams

Investing in our future

Increased Internal Research and Development
Delivering savings to reinvest
Focusing on organic and inorganic growth

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