Changes in strategy and organisational structure

28 oktober 2011 - As of 1 January 2012 we will make some major changes to our strategy and organisational structure. One of these changes will be to reduce our brand portfolio from almost 20 brands to five international brands, grouped into three product / market combinations. These changes were announced this morning, along with the publication of the 2011 third-quarter results. The Executive Board is taking this step in the further development of our organisation with the aim of introducing more focus.

Strategy and Organisational structure

USG People is redesigning its strategy in response to the trends and latest developments in the market for employment services. The markets are requiring an ever-increasing degree of specialisation. Thanks to its strategy centred on an extensive portfolio of specialised brands USG People has over the years already built up know-how in terms of providing specialist services in a number of selected markets. These activities are now being structured in such a way that expertise and best practices can be used more effectively to provide the best possible service to clients and candidates, each of whom has their own specific needs and wishes.

The structure of the organisation will be split into the product/market combinations General Staffing, Specialist Staffing and Professional Solutions, with the international brand portfolio being concentrated into five brands. Each unit will have its own business model which best fits the specific needs of the market segment in which that unit is specialised. From 2012 the current governance by country will be switched to international governance by brand. The Central Works Council of USG People has issued a positive advice on the change in governance and organisation. Obligations with regard to employee representation will also be met in the other countries where USG People is active. This method of governance will strengthen each unit’s focus on providing its specific services. This tighter focus and the associated international governance by brand will increase commercial strength and result in a more efficient organisation. This will translate into improved growth potential and profitability for the group.

The five brands will be shared as follows:
General Staffing: Start People
Specialist Staffing: Unique, Secretary Plus and Technicum
Professional Solutions: USG Professional Solutions

USG People has prepared separate strategic plans for the three segments which respond effectively to the trends and developments in the various markets.

General Staffing – Start People

Start People, which is active in eight countries, will aim for organic growth through the existing network. Outside the Benelux Start People focuses mainly on dominant positions in attractive regions. Start People mainly specialises in mainly specialises in catering to high-volume clients, whereby it pursues a focused cost leadership strategy. Central to this is the ability to deliver large numbers of temporary staff at short notice and at competitive prices. Start People has an established market position and a long track record. It delivers a wide range of services both through its extensive branch network and in-house with clients. Many innovative services which are currently proving successful in certain regions will be made more widely available, aided in part by the new governance model. This more uniform provision of services will create extra organic growth potential within the existing organisation. Core to the General Staffing division is delivering flexibility to allow clients’ staffing levels to expand and contract effectively with fluctuations in demand.

Specialist Staffing – Unique, Secretary Plus and Technicum

Unique will aim to grow organically through the existing network as well as to increase in size in Germany and Italy. In doing so Unique will increasingly make use of satellite branches and mobile offices combined with innovative internet applications. Unique provides its services mainly to small and medium-sized businesses and has a long tradition of specialising in maintaining relations with local companies. The Unique formula has already proven its strength over many years in the Netherlands and Belgium. International governance will enable the concept in other countries to be brought into line with the proposition in the home countries, with the objective being to achieve a coherent and leading position in the SME market. The existing Unique portfolio contains very strong concepts for the provision of specialist services with attractive growth potential. These specialist concepts will be rolled out internationally on a wider scale through the existing network, thus broadening the client base and strengthening partnerships.

Secretary Plus is market leader and specialist in placing, assisting and training top-level secretaries, management assistants and office managers. Secretary Plus has a leading market position in the Netherlands and Belgium and has also built an established reputation in Germany over the past few years. Secretary Plus has a strong growth ambition and in the past few years the activities of Secretary Plus have been rolled out across almost all the countries in which USG People operates. Offices which have opened recently in new countries and regions have shown the Secretary Plus formula to be successful in all countries. The strategic plan for the coming years includes a further expansion of the network.

Technicum, which specialises in technical staff, is strongly positioned in the Netherlands and Germany. In the Netherlands Technicum has held a leading position in its market segment for many years, whilst in Germany a substantial position has been created following a merging of brands in 2010. A further expansion of activities in Germany is targeted, whilst Technicum is also set to launch its activities in Belgium in the next few years.

Professional Solutions – USG Professional Solutions

Professional Solutions is aimed at the market for highly skilled professionals in the fields of engineering, IT, finance, legal, energy, HR, and marketing & communication. A large proportion of the professionals deployed to clients have permanent contracts with one of the USG People operating companies, in addition to which freelancers and self-employed people without staff are also deployed on a project basis. The existing brands of Professional Solutions (USG Innotiv, USG Financial Forces, Legal Forces, USG Juristen, USG Energy, USG Capacity, USG HR Forces, ikki) have been attractive partners for both the professionals and the clients for many years. This guarantees a high level of service which delivers immediate added value for the clients and exciting assignments with top companies for the professionals. Professional Solutions has already established positions in various segments in the Netherlands, Belgium, France and Spain.

The strategic plan for USG Professional Solutions gives priority to a substantial expansion and internationalisation of the activities in the selected areas of expertise. In an increasingly tight market, demand for services by highly skilled professionals is expected to rise sharply in the coming years. In anticipation of this, the plan is to expand this high-quality service provision both by rolling out proven successful formulas and through acquisitions.

This text is from the press release announcing our third-quarter results which was published on 28 October 2011.