A federal Group organised for growth
- CRH is organised as six regionally focussed business segments, three in the Americas and three in Europe, supported by a lean Group centre.
- Experienced operational management within these segments are given a high degree of individual responsibility
- Local autonomy, within Group guidelines and controls, helps accommodate national and cultural needs and capitalises on local market knowledge
- The Group’s size and structure is leveraged to drive margin improvement and earnings growth
- Product-based best-practice teams promote performance improvement through the sharing of experience, technologies and ideas
A tried and tested development strategy
- Stick to the core businesses in building materials and build regional market leadership positions
- Reinvest in existing assets and people to be the low cost market leader
- Gain exposure to new development opportunities creating platforms for future growth
- Negotiate deals that meet the sellers’ and CRH’s needs
- Devolved development teams reporting to regional and product group managers
- Rigorous approach to evaluation, approval and review
- Generally mid-sized deals augmented from time to time with some larger transactions
- Objective is to maintain and develop a balanced portfolio across regions, products and construction sectors
- Focus on performance and growth
A focus on measured performance and growth
CRH has twin imperatives – to perform and to grow. Throughout the Group, businesses are required to deliver performance by achieving a targeted return on capital employed thereby earning the right to grow.
- Key performance metrics are understood and consistently applied across the Group
- Financial control is exercised through a rigorous annual budgeting process and timely monthly reporting
- Monthly results are vetted by Divisional management and critically reviewed at Group headquarters
- Full year performance is regularly reforecast under prudent accounting policies
- Best-practice initiatives in production, distribution and administration are benchmarked against quantified targets
Growth is achieved:
- Through investing in new capacity
- From developing new products and markets
- By acquiring and growing mid-sized companies, augmented from time to time with larger deals
An experienced management team
CRH has a highly experienced management team and the development of talented successors is a priority of all managers. Regular formal reviews of management development strategy are carried out by each Division with guidance and support provided by the Group Human Resources function.
Managers come from three very different streams, comprising:
- Internally developed operating managers who have room to grow
- Highly qualified finance and development professionals, business builders with vision
- Owner-entrepreneurs who have joined with their companies and who question the status quo
This provides a healthy mix and depth of skills and a wealth of experience at senior level with many managers having managed through previous economic cycles.
A remuneration policy that rewards performance
CRH’s market-driven approach is central to attracting, retaining and motivating exceptional managers. Performance-related rewards are based on measured targets for the creation of shareholder value.
- There is potential for a high proportion of compensation to be variable
- Share options are granted to key managers to encourage identification with shareholders’ long-term interests
- Employee share participation and savings related share option schemes create a community of interest among different regions and nationalities
A responsible corporate citizen
CRH’s strategic vision is to “be an international leader in building materials delivering superior performance and growth”. Corporate responsibility is a core element of this vision.
CRH strives to:
- Ensure that our businesses operate in an environmentally responsible manner
- Be a responsible employer achieving best-practice and international standards of health and safety throughout all of the Group businesses
- Be a responsible neighbour and a responsible member of the local communities within which we operate
- Ensure that our business is conducted in an ethical and proper manner
- Ensure that the Group communicates effectively, coherently and in a timely manner with all of its key stakeholder groups
A balanced Business
CRH’s unique strategic balance and broad geographic and product footprint provide stability of performance through the cycle and provide multiple platforms for growth across Europe, North America and emerging markets.
CRH seeks to reduce the effects of varying demand patterns across building and construction end-use sectors by maintaining a balanced portfolio of products serving a broad customer base across infrastructure, residential and the commercial sectors in both new and repair maintenance and improvement related construction.