CASE SYNOPSIS
“Effective Strategies For Long-Term Growth”
NATS
Introduction To NATS
NATS manages world’s busiest airspace safely and efficiently .Over 2 million flights per year. NATS was established in 1962; transferred to Public/Private Partnership in 2001, £123m invested since then. NATS offers full range of services in 28 countries includes air traffic control, engineering and software consultancy, defence services, training.
Aims And Vision
Aims - what the business intends to do in the long term. NATS key aims are: * Reach £1bn turnover by 2015 * Reducing safety risks across the business * Engaging with and focusing on customers’ needs * Increasing efficiency and effectiveness, e.g. establishing cost savings/ best practice * Reducing carbon emissions.
Vision - aspirational and inspirational:
NATS’ vision: ‘to be acknowledged as a global leader in innovative air traffic solutions and airport performance’.
NATS Key challenges are: * Economic pressure * Globalisation of the market * Higher efficiency and environmental targets * Increasing competition.
SMART Objectives * Help to achieve aims – by function or for organisation * Ensure that progress can be measured.
SMART objectives by NATS: * To reduce the level of safety risk across the business by 40% over a period of four years * To reduce CO2 emissions related to air traffic management by an average of 10% per flight by 2020, from a 2006 baseline. * To achieve interim target reduction of an average of 4% per flight by 2015.
Strategy
NATS strategy centres on three key areas:
1. Innovation – developing new and creative products/services
E.g. Heathrow Dashboard gives real-time data to aid decision making
2. Partnerships – creating alliances to strengthen position/open up new markets
E.g. joint ventures enable NATS to bid for international contracts
3. People – enhancing skills and competencies to meet market challenges E.g. * Global job opportunities * Highly focused training and development offered at all levels * Industrial placements to attract brightest talent * Secondments to enhance employees’ learning.
Tactics
Tactics are activities to achieve objectives - customer-focused or operationally based. NATS solutions stem from strategy of innovation: * 3Di – developing optimum flight paths * ‘Perfect flight’ test – saving carbon emissions * Single European Sky initiative – efficient use of airspace to save fuel * Managing data – use of ‘cloud’ infrastructure for efficiency and cost-effectiveness * Developing people – purpose-built training and development facility with flight simulation technology.
Conclusion
NATS has grown from a UK-only to international air traffic management provider. Its strategies for continued growth rely on its innovation, partnerships and people. At a time of global economic recession, NATS has delivered ways to help its customers add value, reduce emissions and save fuel. NATS saved 60,000 tones of CO2 emissions.