Marks and Spencer 2010 Annual Report Download - page 61

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Operating & Financial review p16
Governance
Financial statements p78
To find out more, visit marksandspencer.com/annualreport2010 57
Risk and Impact Mitigating activities
People and change
As we increase the pace of change in the business and continue to invest for the future, it is important to keep strengthening our people
and processes at every level.
People Failure to attract, develop
and retain key employees (head office
and stores) limits our ability to deliver
our plans
Formalised objective setting in place for all employees, including behaviours aligned to the –
M&S brand values
Lead to Succeed leadership programme underway to develop and fast track current and –
potential leaders
Learning and development opportunities available and promoted across all business areas –
Bonus scheme in place for all employees based on business and individual objectives –
Change projects Failure to
effectively deliver our major change
projects and minimise disruption to
day-to-day operations impacts our
business
Governance structures and delivery teams in place with robust project management discipline –
across all major change programmes
2020 Cross Workstream Dependency Management Forum in place to oversee major –
change projects
New Group Investment Committee and expenditure policy established for all investment –
and commitment between £1m-£15m
Regular updates to the Group Board on progress against key project milestones –
Day-to-day operation
We are the UK’s leading retailer of quality clothing, food and home products, with more than 21 million UK customers and over 2,000 suppliers.
Stock management Ineffective
stock management impacts
availability in stores and online
(GM, Food and International)
Significant investment in IT and aligned business processes across the Group to improve –
forecasting, availability and stock control
New and improved commercial tools to enable business areas to manage stock better –
IT security Major breach in IT
security results in severe service
disruption or disclosure of personal
customer information
Business crisis management team and processes in place to deal with significant IT security –
incidents that impact our ability to trade
Clear policies and agreements in place where data is shared or processed by third parties –
Extensive controls in place in accordance with international standards for establishing and –
maintaining information security management
Suppliers/third parties Failure of
a key supplier or third party provider
impacts the service provided to our
customers
Financial monitoring of all suppliers and flexible payment terms for major suppliers during –
difficult economic conditions
Dialogue with suppliers and third party providers to identify any issues early on and ensure –
good working relationships
Review of our supply base to reduce reliance on key suppliers where appropriate –
Supply chain Major disruption to the
supply chain impacts the delivery of
the Group’s objectives
Central IT and back up available to provide support in the event of a system failure at a key site –
Business continuity and disaster recovery plans in place and tested at least annually –
Selling channels
We have ambitious plans for our M&S Direct and International businesses as part of our commitment to broadening our multi-channel offer.
M&S Direct Failure to keep pace
with customer expectations in a fast-
developing sector inhibits our ability
to compete and grow our Direct
business
Clear growth strategy for Direct –
Ongoing focus on performance of website platform, order fulfilment and customer service –
Continual review against the market and our competitors –
International Failure to leverage our
systems and processes limits growth
of our International business through
franchises, partnerships and wholly-
owned businesses
New leadership, operating structure and people in place to support the International business –
Regular executive business reviews and updates to the Group Board to ensure progress –
against key milestones and identification of emerging business opportunities
Plans underway to improve systems and processes supporting our International business –