Barclays 2014 Annual Report Download - page 10

08 I Barclays PLC Annual Report 2014 barclays.com/annualreport
How we are doing
Strategy
Our Transform programme was launched in 2013 to deliver
our strategy of reshaping Barclays to generate sustainable
returns and to meet the needs of all our stakeholders.
Q We have completed the ‘Turnaround’ phase that stabilised the
business and maintained short-term momentum
Q We have put in place structured plans to de-risk, de-leverage and
make Barclays more sustainable for the long-term as part of the
‘Return Acceptable Numbers’ phase. We are halfway through this
journey, and already demonstrating strength in the fundamentals
of capital build and leverage
Q The final part of the plan, running alongside the other two
components, is FORward Momentum. On our journey to become
‘Go-To’ we must continue to adapt Barclays for the future, ensuring
that we do not return to short-term bias as we carry through our plans
We note that successful implementation of the Transform plan does
carry significant execution risks; not least because progress is subject
to unforeseen external developments and may therefore not be
uniform or linear.
Where we are now
2014 was a year of material change for Barclays. We still faced a
challenging operating environment, but with greater clarity and on a
stronger financial footing. As we continue to execute our Transform
plan to make Barclays the ‘Go-To’ bank for all our stakeholders,
we have optimised and adjusted our strategy and the shape of our
business. These steps are necessary to deliver the Transform objective
of a sustainable return on equity above the cost of equity in a changed
regulatory and economic environment.
Barclays has taken decisive action in order to reduce risk, strengthen
our balance sheet and increase the efficiency of our Core franchise
operations. We will seek to deliver significantly improved and
sustainable returns by focusing on areas of competitive advantage and
exiting businesses where appropriate returns are no longer achievable.
Underpinning these actions is a continuing focus on cost. In a
prolonged low-growth macroeconomic environment, cost will be the
strategic battleground for banks. We remain committed to a material
reduction in cost over time, enabled in part by technology, regardless
of the income environment.
We monitor success of the Transform
programme through the Balance
Scorecard. See page 11
Becoming ‘Go-To’
Our strategy remains on course
To build a stronger, fitter, better bank
2013 2014 2015 2016 2017 2018
Transform:
Where we are now
0-9 months – Turnaround
Stabilise the organisation,
provide context for the
change to come, maintain
short-term momentum
0-4 years – Return Acceptable Numbers
Improve business returns, define
and execute plan to deliver return
on equity above cost of equity
0-5 years – Sustain FORward Momentum
Become the ‘Go-To’ bank for our
stakeholders – customers and clients,
colleagues, investors, and wider society
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