strategy

Our strategic agenda has a number of primary goals, which are visualized in the diagram below. The overall financial goal is an average EBITA margin of 5-6% through the cycle. This bracket can be exceeded in very good years, while the EBITA margin should not be below 4% during downturns. We believe the average 5 -6% range ensures the Group’s financial position and enables us to keep investing in growth. The 4% minimum should reduce volatility but still allow us to invest. Continuous focus on market growth and market share gains are intertwined. Taking and maintaining leadership in markets enables us to develop them further still. Increased geographic diversification of revenue both provides additional growth and spreads risks and opportunities more evenly. A sound financial position, commensurate with an investment grade rating, is important for continuity.

Strategy through economic cycles
Underlying our EBITA targets is full awareness of the challenges and opportunities presented by economic cycles. Downturns are challenging but, if well managed, also offer opportunities as, for instance, market share can be gained. Randstad’s performance base has improved significantly in recent years. We now have a strong focus on execution throughout the organization. We have implemented the successful unit steering model consistently throughout our mass-customized network and we have implemented standardized selected key work processes based on best practice. Furthermore, our cost awareness is greater and our planning, reporting and review processes are stronger.