Page 5: Measuring growth
Organisations can measure growth in a variety of ways. For example, growth can be measured against revenue, profit, market share or the number of geographical markets in which a company operates. Comparisons can then be made between this data and data from previous years to determine if its aims and objectives have been achieved. IMI measures growth against its key growth strategies and its goal to be the global leader in each of its niche markets. IMI monitors its global competitors to determine whether it is the market leader.
IMI sets growth objectives at a Group level as well as for each of its divisions. The annual results enable IMI to measure the percentage of growth in each division, both organic and inorganic growth, to ensure objectives have been achieved. For example, in 2012, IMI’s organic and reported revenues rose 3% to £2.19 billion. IMI’s Severe Service revenues, boosted by the Remosa and InterAtiva acquisitions, were up 20%. The results also demonstrated that IMI achieved strong growth in emerging markets with a 24% increase in revenue in 2012 and organic growth up 14%. This information is used by IMI senior managers to determine growth trends and to set future growth strategies and objectives.
Alignment of these objectives is key for IMI to meet its target to invest the percentage of revenue from new product development, and to achieve a corresponding increase in investment in research and development.