Black & Decker 2015 Annual Report Download - page 7

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05
SFS 2.0 — BEST-IN-CLASS OPERATING SYSTEM GETTING BETTER
enhance our already strong performance. Core SFS now also incorporates
digitization of the supply chain and ‘smart factory’ into its tool kit
• Functional Transformation takes a clean-sheet approach to redesigning
our key support functions such as Finance, HR, IT and others, which
although highly eective, after almost a hundred acquisitions are not as
ecient as they could be, based on external benchmarks. This presents
an opportunity to reduce SG&A as a percent of sales and becomes our
funding mechanism for the growth-related elements of SFS ., which
in turn enables outsized organic growth and margin expansion
• Digital Excellence is a comprehensive initiative designed to leverage the
power of digital technology and advanced analytics to challenge existing
paradigms and improve our products, processes, business models
and how our people operate. We are infusing new talent and capabilities
into our organization and promoting the concepts of digital speed and
leadership agility to keep our culture and enterprise fresh and relevant
in this era of constantly accelerating change. Digital, including social,
mobile, Internet of Things and big data, touches all aspects of our business
and feeds into and supports the other elements of SFS . and ultimately
contributes to growth, margin expansion and asset eciency
SFS . was launched in  and we are already seeing its impact in our  results — driving organic
growth, margin improvement and new levels of innovation and digitization across our enterprise.
The momentum continues to build.
Visit yearinreview.stanleyblackanddecker.com/how-we-operate to learn more.
OUR LONG-TERM
FINANCIAL GOALS
Revenue Growth
~10%–12% Total
4%–6% Organic
Financial Performance
10%–12% EPS Growth*
FCF ≥ Net Income
CFROI in 14%–15% Range
Dividend
Continued Growth
Credit Rating
Strong Investment Grade
* Including acquisitions
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Operational
Lean
Complexity
Reduction
Order-to-Cash
Excellence
Sales &
Operations
Planning
Global
Supply
Management
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Breakthrough
Customer Value
Digital
Excellence
Commercial
Excellence
Breakthrough
Innovation
Core SFS
Functional
Transformation
SFS
2.0