Daily Archives: 04/11/2014

Robert Hannigan begins director’s role at GCHQ

Robert Hannigan has now succeeded Sir Iain Lobban as director of GCHQ, his appointment made with the agreement of Prime Minister David Cameron and in consultation with Nick Clegg, the Deputy Prime Minister.

Robert Hannigan has been the Director General (Defence and Intelligence) at the Foreign and Commonwealth Office (FCO) since 2010. Hannigan’s appointment (first announced back in April) at GCHQ was made following a recruitment process chaired by Sir Kim Darroch, National Security Adviser, that was open to crown and civil servants.

Foreign Secretary William Hague commented: “I’m delighted that Robert Hannigan has been appointed as the next Director of GCHQ. GCHQ’s world class work is vital to the safety and security of the United Kingdom. As well as his impressive personal qualities, Robert brings to the job a wealth of relevant experience in the fields of national security, counter-terrorism and international relations. I’d also like to thank Sir Iain Lobban for his consistently strong and professional leadership as Director of GCHQ since 2008.”

Commenting on his appointment, Robert Hannigan said: “It’s a privilege to be asked to lead GCHQ, an organisation which is so central to keeping the people of this country safe. I have great respect for the integrity and professionalism of the staff at GCHQ and for what they have achieved under the outstanding leadership of Sir Iain Lobban. I’m excited about meeting the challenges of the coming years alongside them.”

Robert Hannigan: the new Director of GCHQ

Robert Hannigan: the new Director of GCHQ

Sir Kim Darroch stated: “I’m delighted Robert Hannigan has been appointed Director of GCHQ. He will bring energy, flair, deep knowledge and extensive experience to the role, and I look forward to working closely with him. I would also like to take this opportunity to thank Sir Iain Lobban. Iain has been a close friend and colleague over my time as National Security Adviser, and has done an absolutely outstanding job at an exceptionally testing time for the organisation.”

Robert Hannigan: the Curriculum Vitae

Robert Hannigan joined the FCO as Director General (Defence and Intelligence) on 29 March 2010. For a number of years he has advised the Prime Minister on counter-terrorism, intelligence and security policy.

Hannigan joined the Civil Service from the private sector, becoming Director of Communications for the Northern Ireland Office. He was then appointed to be principal adviser to (then) Prime Minister Tony Blair and various Secretaries of State for Northern Ireland on the peace process, assuming responsibility for negotiations with the political parties and other groups in addition to liaison with the Irish Government and US Administration.

Hannigan was also the Prime Minister’s Security Adviser and Head of Intelligence, Security and Resilience in the Cabinet Office from 2007 with responsibility for the UK’s National Security Strategy.

Hannigan has been a member of the Joint Intelligence Committee for many years and was responsible (in the Cabinet Office) for the funding of the three UK intelligence agencies. He has regularly chaired ‘COBR’ meetings on terrorist incidents.

He was also responsible for the UK’s first Cyber Security Strategy and oversaw the first National Security Strategy.

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Securitas AB publishes Interim Report for January-September 2014

Global security solutions provider Securitas AB has published its Interim Report for the period January–September 2014. Organic sales growth has continued to show a positive trend.

July-September 2014
Total sales: MSEK 18 003 (16 605)
Organic sales growth: 4%(1)
Operating income before amortisation: MSEK 962 (892)
Operating margin: 5.3% (5.4)
Earnings per share: SEK 1.57 (1.42)

January-September 2014
Total sales: MSEK 51 234 (48 975)
Organic sales growth: 3%(1)
Operating income before amortisation: MSEK 2 488 (2 450)
Operating margin: 4.9% (5.0)
Earnings per share: SEK 3.93 (3.72)
Free cash flow/net debt: 0.16 (0.26)

Comments from the President and CEO

“Organic sales growth continued to show a positive trend driven by successful sales efforts, our security solutions strategy and technology offerings developed for our customers,” explained Alf Göransson, president and CEO. “All business segments improved compared to last year, with the organic sales growth reaching 4% in the third quarter.”

Alf Göransson: President and CEO at Securitas

Alf Göransson: President and CEO at Securitas

Göransson continued: “In real terms, earnings per share improved with 4% in the first nine months. The operating income improved in the quarter and during the first nine months compared to last year, even though burdened by difficult market conditions in Spain. A re-organisation will be implemented in Spain during the fourth quarter, re-allocating resources from traditional guarding operations to security solutions and technology sales efforts and also adapting the structure to the reduced volumes. These actions will likely require a one-off restructuring cost not exceeding MEUR 2 which will be recognised in the fourth quarter.”

Sales of security solutions and technology gradually increasing

“In 2012, sales of security solutions and technology represented approximately 6% of Group sales. We’ve set a target to triple this share of sales by the end of 2015. We continue to invest in resources within security solutions and technology. The share of sales run rate in the third quarter 2014 was 9.5%.”

Affordable Care Act 2015

Göransson added: “The Affordable Care Act will come into full force as of 1 January 2015. By mid-October, for approximately 80% of the total US portfolio, either agreements have been made effective as of 1 January 2015 or the contracts are already compliant with the US’ healthcare reform programme. For the remaining portfolio, the final months of the year will be crucial in determining to what extent our customers will accept the price increase or decide for a security solution and technology alternative.”

In conclusion, Securitas’ president and CEO explained: “We estimate that the previously expected cost increase of 8%-10% for the non-compliant contracts will be more in the range of 4%-5% because of lower wage compensation, which will result in lower security officer participation rates than anticipated. Consequently, by mid-October more customers than expected have opted for the price increase rather than security solutions and technology alternatives. We estimate the net organic sales growth effect in Security Services North America coming from the Affordable Care Act implementation to be approximately 1% in 2015.”

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BSI launches PAS 7000 global risk management standard for supply chains

BSI, the business standards company, has launched PAS 7000, a universally applicable supply chain information standard for suppliers and buyers operational at organisations of all sizes around the globe.

PAS 7000 Supply Chain Risk Management: Supplier Pre-Qualification helps answer three key questions relating to any organisation’s supply chain partners: ‘Who are they?’, ‘Where are they?’ and ‘Can they be relied upon?’

The standard exhibits the collective expertise of 240 professionals drawn from global industry associations and organisations* and addresses product, process and behavioural criteria for supplier pre-qualification.

PAS 7000 has been created in response to industry demand, with three quarters of executives considering supply chain risk management important or very important1. As supply chains increasingly span continents, and brands become ever more exposed due to the demand for increased transparency, so the challenge for procurement teams to assess the suitability of suppliers increases. 63% of EMEA companies have experienced disruption to their value chain due to unpredictable events beyond their control in the last 12 months at an average cost of £449,525 per incident per company2.

PAS 7000 brings transparency and cost savings to the procurement of supply chains

PAS 7000 brings transparency and cost savings to the procurement of supply chains

PAS 7000 provides companies with a uniform set of common information requirements that reduces duplication of effort in completing tender forms and aids procurement in bringing consistency to the supplier base. It establishes a model of governance, risk and compliance information for buyers to pre-qualify suppliers and confirm their intention and ability to adhere to key compliance requirements. In turn, this helps organisations make an informed decision about whether or not to engage with a potential supply chain partner.

Howard Kerr, CEO at BSI, said: “Today’s consumers and employees demand integrity from the organisations with which they’re dealing. Acting with integrity requires confidence in all those involved in delivering a service. Anything else risks brand reputation. The benefit of this new standard is that it helps brands to align their supply chain with their corporate values by adopting an internationally defined framework of good practice for supplier pre-qualification.”

Major benefits of PAS 7000

• Structured and presented to be equally accessible for both suppliers and buyers
• Based on international consensus developed by procurement and supply chain professionals drawn from across the EU, the US and the APAC region
• Includes a wide range of potentially relevant topic modules such as capacity and capabilities, environmental management, employment policies, business continuity, traceability and data protection to name but a few
• The modular approach to information required permits the building of respective modules into a customised matrix supported by a common set of application principles or rules
• Provides a degree of flexibility for tailoring the information to particular organisational needs while at the same time retaining a robust and repeatable approach
• Helps mitigate risks and reputational damage

Kerr added: “This new information model approach involves a concept shift away from that of ‘providing questions that are to be asked by buyers in order to solicit answers from suppliers’ to one where there is ‘a generally accepted information model that’s provided by suppliers and that’s acquired and used by buyers as required’. It’s a fundamental change that will hopefully increase transparency and trust in the supply chain, as well as saving time and effort for both suppliers and buyers in the future.”

For further information (and to download the PAS 7000 standard free of charge) visit: http://www.bsigroup.com/PAS7000

References

1‘Don’t play it safe when it comes to Supply Chain Risk Management’ (Accenture Global Operations Megatrends Study 2015)
2Dynamic Markets: Managing the Value Chain in Turbulent Times (Oracle, March 2013)

*Organisations involved in the development of PAS 7000 include: Achilles Group Limited, Altius Vendor Assessment Limited, Astra Zeneca, Brother Industries Ltd, Builder’s Profile (UK) Ltd, Capita plc, Celgene Corporation, Chartered Institute of Purchasing and Supply, Dainippon Screen MFG Co Ltd, Defence Science and Technology Laboratory, East Riding of Yorkshire Council, Japan Audit and Certification Organisation for Environment and Quality, Japan Quality Assurance Organisation, London Underground Limited, Metcash Limited, Onward Kashiyama Co Ltd, Osaka Izumi Co-operative Society, PICS Auditing, Sanitarium Health and Well-Being, Sompo Japan Nipponkoa Risk Management Inc, Supply Chain Council – Hong Kong, Toyota Tsusho Corporation and the Vendigital Group

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