Recovery and stabilisation

The key strategic objectives in the recovery and stabilisation phase include:

The eight work streams that will be the primary focus areas and enablers for management in the short term recovery and stabilisation phase are set out and explained below:
Work stream   Objectives   Key activities  
Cash management  
Strengthen Aveng’s financial and cash position  
  • Short term measures: active management of supplier and customer accounts, including claims recovery
  • Medium term: address operating group’s specific cash issues, ensure that each operating group targets positive operating free cash flow and prepare operating group plans for the recovery of claims
  • Long term: address underlying reasons for underperformance so as to improve profitability and cash generation
Risk management  
Instil and improve risk management as a business imperative across the Group  
  • Ensure risk guidelines are easily understood
  • Define risk tolerances at operating group level
  • Streamline current tender risk process
  • Improve risk management culture and awareness across the Group
  • Enhance the ‘three lines of defence’
Cost management  
Achieve annual sustainable cost reduction particularly from fixed overhead costs  
  • Set operating group baseline and targets
  • Classify savings initiatives into short, medium and long term
  • Execute rightsizing exercise
  • Execute medium and long term plans
Strategy execution  
Complete the reorganisation of Aveng  
  • Confirm the Aveng vision and strategy
  • Articulate business model and clear roles and responsibilities at all levels of the Group
  • Confirm Aveng portfolio mix including focus sectors and geographies
  • Execute reorganisation of the Group and operating groups to fit new portfolio
  • Set metrics / tools to assess progress
Skills development  
  • Improve skills throughout the Aveng Group within the next 12 months
  • Improve management stability
  • Evaluate skill levels per operating group
  • Develop and implement action plan per operating group to close skills gaps
  • Adapt the reward system, where required, to close skills pipeline gap
  • Combine skills / transformation plan per operating group / business unit
Culture management  
Instil a revitalised Aveng DNA culture across the Group  
  • Communicate the vision and strategy of Aveng
  • Analyse the latest culture survey to set a baseline
  • Develop and implement plans to embed the DNA
  • Operating group / business unit managing directors to personally communicate the vision to all employees
Ensure clear communication across all internal and external stakeholders  
  • Translate group vision; communicate to business units
  • Conduct staff culture surveys
  • Quarterly operating group sessions to encourage information sharing
  • Implement client relationship management on projects  
Performance management  
Ensure that there are no underperforming business units or projects  
  • Implement performance contracts at all levels of the Group
  • Drive a culture of performance / consequence management
  • Implement performance management systems to conduct reviews of underperforming BUs and contracts
  • Put in place realistic recovery plans.

The execution of the eight work streams will be driven at a corporate and operating group level and will lay the foundation leading into the second and third phases of the strategy, namely, optimisation and growth.