Economic Responsibility
CLIENT SATISFACTION
Long-term, sustainable success is our goal. This is why the demands and expectations of our clients are at the heart of each and every project.
Objectives and Indicators
The overarching objective defined by the Management Board is to increase client satisfaction in order to win and maintain the highest possible share of regular customers.
The measurement of client satisfaction via a client survey has been carried out for construction projects using a uniform group standard since 2005. This standard was amended in 2021 and again rolled out across the group. An online questionnaire is sent to clients in all group countries, asking for their project-specific or contract-related evaluation of the following aspects:
The operating units can implement additional procedures for measuring client satisfaction. Reporting at the corporate level is performed by the central division TPA. The assessment of the results and the extrapolation of objectives and measures is the responsibility of the operating units during their annual planning and assessment process.
The new online survey with 18 questions on the three aforementioned aspects also takes into account issues of occupational safety, the environment and energy, and the clients’ perception of STRABAG’s core values. The results of the customer survey for the reporting year 2022 can be seen in the table below:
More information on client satisfaction is available here.
DIGITALISATION AND INNOVATION
STRABAG wants to be the leading technology partner for the construction of tomorrow. Digitalisation is changing our world to an unprecedented extent, and STRABAG wants to move things along instead of being moved along by them. This can be achieved by pursuing concrete digitalization goals and includes the removal of information silos, standardising and promoting digital business processes, and systematically automating and ensuring suitable digital equipment for all group employees. At the same time, the sorts of societal challenges that the EU is addressing with the Green Deal require innovative responses from companies as well. STRABAG plays a major role in the digital transformation of the construction industry. This enables us to create comfortable living space at low cost, manage infrastructure intelligently, use resources effectively and reduce emissions.
Projects and Initiatives
The central division SID has already helped realise more than 400 development projects throughout the STRABAG Group covering the entire value chain of the construction industry. In general, the trend towards data-based design, construction and operation is increasing.
On our innovation website or in our current annual report, you will find more detailed information on our group strategies and projects in the context of digitalisation and innovation.
Objectives and Indicators
STRABAG is actively driving forward the digital transformation of construction site processes and is also working on the resulting new (digital) business models. The company is convinced that the focus here must be on the expectations of the customers and the more efficient design of existing processes. Digital transformation not only influences the construction project and everyone involved, it also changes the processes within the group organisation:
More information on digitalisation and innovation is available here.
RISK AND OPPORTUNITY MANAGEMENT – PROJECT RISK MANAGEMENT
The STRABAG Group encounters many different risks and opportunities in the course of its business activities. These risks are systematically identified and assessed using a proactive risk management system and managed consistently and in a goal-oriented manner through an appropriate risk management policy.
Projects and Initiatives
The STRABAG Group’s risk management system was improved through the following changes and enhancements in the 2022 financial year:
Objectives and Indicators
A primary objective is the long-term existence of our company, which we strive to ensure by maintaining our focus on cost efficiency and the disciplined use of capital.
The EBIT margin is our most important financial indicator. The margin is especially crucial for our investors.
¹ 2018 adjusted for a non-operating step-up profit in the amount of € 55.31 million
Positive earnings contributions in all segments led to an extraordinarily high EBIT margin (EBIT/revenue) of 5.9% in 2021. As expected, a normalisation began in 2022. The EBIT margin amounted 4.2%, bringing it in line with the goal of achieving at least 4% on a sustainable basis.
More information on risks and opportunity management is available here.
Published on website: 27.07.2015 – Last Update: 14.06.2023 11:17:07
Long-term, sustainable success is our goal. This is why the demands and expectations of our clients are at the heart of each and every project.
Projects and Initiatives
In addition to managing the client survey process, the Group’s in-house STRAthek application has offered not only comprehensive information on client feedback at the project level since the second half of 2022, but also has a dashboard that paints a meaningful picture of current client satisfaction at any organisational level while identifying potential for improvement in the process. At the same time, it is important to organise the partnering relationship with clients already during project preparation and implementation in such a way that corresponding positive assessments can be expected after project completion. Two important levers here are partnering models in the design of the working relationship as well as LEAN.Construction methods in the implementation:
- Our TEAMCONCEPT partnering model has the clear goal of significantly increasing the efficiency and cost-effectiveness of construction projects through constructive, open and mutually trusting cooperation between all project participants. The model is especially suited for private clients who want to realise challenging or highly stressed road surfaces without sacrificing cost, schedule or quality assurance. Under the TEAMCONCEPT scheme, client and contractor form a team already during the design and planning phase – much earlier than in a classic construction project. Together, they incorporate the interests of all project participants right from the start, creating a clear framework, establishing a binding set of rules and defining common goals. This creates security and ensures that costs are kept under control.
- LEAN.Construction methods make construction processes more effective and more efficient, ultimately contributing to client satisfaction. Our highly qualified experts support the construction site teams from design and planning through to execution. Several different methods are used to optimise the processes: Takt time planning and control, together with a last-planner system and shopfloor management, enable the team to coordinate all design and construction activities up to the completion date in the best possible way.
Objectives and Indicators
The overarching objective defined by the Management Board is to increase client satisfaction in order to win and maintain the highest possible share of regular customers.
The measurement of client satisfaction via a client survey has been carried out for construction projects using a uniform group standard since 2005. This standard was amended in 2021 and again rolled out across the group. An online questionnaire is sent to clients in all group countries, asking for their project-specific or contract-related evaluation of the following aspects:
- organizational efficiency and technical realisation
- responsible and sustainable handling of people and resources
- professional competence as well as communication and cooperation in and with our team
The operating units can implement additional procedures for measuring client satisfaction. Reporting at the corporate level is performed by the central division TPA. The assessment of the results and the extrapolation of objectives and measures is the responsibility of the operating units during their annual planning and assessment process.
The new online survey with 18 questions on the three aforementioned aspects also takes into account issues of occupational safety, the environment and energy, and the clients’ perception of STRABAG’s core values. The results of the customer survey for the reporting year 2022 can be seen in the table below:
More information on client satisfaction is available here.
DIGITALISATION AND INNOVATION
STRABAG wants to be the leading technology partner for the construction of tomorrow. Digitalisation is changing our world to an unprecedented extent, and STRABAG wants to move things along instead of being moved along by them. This can be achieved by pursuing concrete digitalization goals and includes the removal of information silos, standardising and promoting digital business processes, and systematically automating and ensuring suitable digital equipment for all group employees. At the same time, the sorts of societal challenges that the EU is addressing with the Green Deal require innovative responses from companies as well. STRABAG plays a major role in the digital transformation of the construction industry. This enables us to create comfortable living space at low cost, manage infrastructure intelligently, use resources effectively and reduce emissions.
Projects and Initiatives
The central division SID has already helped realise more than 400 development projects throughout the STRABAG Group covering the entire value chain of the construction industry. In general, the trend towards data-based design, construction and operation is increasing.
On our innovation website or in our current annual report, you will find more detailed information on our group strategies and projects in the context of digitalisation and innovation.
Objectives and Indicators
STRABAG is actively driving forward the digital transformation of construction site processes and is also working on the resulting new (digital) business models. The company is convinced that the focus here must be on the expectations of the customers and the more efficient design of existing processes. Digital transformation not only influences the construction project and everyone involved, it also changes the processes within the group organisation:
- Collection and analysis of machine data starting with 2019: Increasingly higher expectations are being placed on quality and performance documentation and on a more sustainable use of environmental resources. For this reason, we increased our use of telematics systems with key equipment in 2019 to record and analyse their movement and operation. In 2022, we already achieved a rate of 45 % (2021: 44 %). In addition, telematics systems were installed in 1,157 commercial vehicles and approximately 25,000 other devices were equipped with position recognition.
- BIM 5D® workstations: STRABAG is gradually upgrading its CAD workstations for use with BIM 5D® technology in building construction and civil engineering, transportation and infrastructure projects. The number of BIM-capable workstations has been growing continually and in 2022 reached 2,435 across the entire group. That corresponds to a year-on-year increase of 12 %.
- Mobile end devices for a more flexible work design: Digitalisation is changing the work routine – for example, with a shift towards mobile working. Provided with end devices such as tablets, employees can benefit from the more flexible work design that digitalisation makes possible. The percentage of employees using tablets for work purposes in 2022 stood at 28% (2021: 25%).
- Expenditure on research, development and innovation activities in the group: approx. € 16 million (2021: approx. € 16 million)
More information on digitalisation and innovation is available here.
RISK AND OPPORTUNITY MANAGEMENT – PROJECT RISK MANAGEMENT
The STRABAG Group encounters many different risks and opportunities in the course of its business activities. These risks are systematically identified and assessed using a proactive risk management system and managed consistently and in a goal-oriented manner through an appropriate risk management policy.
Projects and Initiatives
The STRABAG Group’s risk management system was improved through the following changes and enhancements in the 2022 financial year:
- Improvement of the decision-making foundations in the project procurement phase through standardised project presentations for pre-qualification, selection interview and price commission with mandatory application for large-scale and mega projects
- Implementation and further development of a tablet-optimised app for management with easy access to transparent and aggregated decision-making foundations for selection and price commission as well as an integrated task module for approval requirements
- Continued implementation of workshops and project-related plausibilisation talks for the application of the corporate-wide standardized catalogue of causes for the allocation of significant positive and negative earnings causes with an analysis of cause-and-effect relationships
- Ongoing implementation and tracking of activities to measure penetration, acceptance and compliance with the common project standards (CPS)
Objectives and Indicators
A primary objective is the long-term existence of our company, which we strive to ensure by maintaining our focus on cost efficiency and the disciplined use of capital.
The EBIT margin is our most important financial indicator. The margin is especially crucial for our investors.
¹ 2018 adjusted for a non-operating step-up profit in the amount of € 55.31 million
Positive earnings contributions in all segments led to an extraordinarily high EBIT margin (EBIT/revenue) of 5.9% in 2021. As expected, a normalisation began in 2022. The EBIT margin amounted 4.2%, bringing it in line with the goal of achieving at least 4% on a sustainable basis.
More information on risks and opportunity management is available here.