SGH 4C Drivers
The SGH Way is underpinned by four enablers that shape our operating model and drive performance – the 4Cs.
Cadence – a disciplined operating rhythm and accountability model, anchored in our balanced scorecard and governance processes, to drive results.
Capital – a structured Capital Allocation Model that guides how we reinvest in our businesses and pursue new opportunities, with a focus on target sectors and industries.
Culture – shaped by our Purpose, Objectives and Values (POV), which provide clarity on why we exist and how we operate.
Capability – delivery and performance across our People, Operations, Assets and Financial pillars, ensuring the strength and scalability of our businesses
Cadence: The performance culture and execution at SGH is underpinned by our operating cadence. The SGH cadence is the structured consistency that supports the delivery of our objectives. Through a robust framework and operating rhythm, the operating cadence drives accountability and execution, focusing on the tools and analysis required to review and deliver performance from front line staff through to the SGH Board.
Capital: As a diversified operating company, the aspect of portfolio is an active consideration determining where SGH operates. The business will continue to evolve, and how it allocates capital is a key aspect for driving performance and returns.
SGH's Capital Allocation Framework sets out the decisions process, and has been articulated to the market. There is a strong focus on free cash flow generation and how it is invested to support business objectives. One of the key strengths of SGH is the cash flow generation of its operating businesses, and the ability to allocate that cash to existing businesses or new opportunities, where there is the greatest potential for risk-adjusted returns.
Capital allocation for inorganic opportunities is governed by a clearly defined set of criteria. The criteria looks at both the company specific aspects to determine the appeal of the company within our area of focus, and also the specific situation that can support our ability to create a return above our risk weighted cost of capital.
Culture: is central to how we live our Purpose, Objective, and Values (POV). Our POV have remained consistent for many years, providing a clear framework for why we exist, what we aim to achieve, and the principles that guide our actions.
The ROCA values, Respect, Owner’s Mindset, Courage and Agility, represent the core attributes of SGH. While each of our businesses may have their own set of values, they ultimately align with the ROCA values at SGH. These values underpin our culture of performance and results, with the Owner’s Mindset in particular emphasising disciplined execution and delivery today while also maintaining a focus on long-term value creation.
Capability: We recognise and serve our exceptional businesses by driving strong performance through capability across four pillars: People, Operations, Assets and Financials (POAF). These pillars support our POV and provide the structure and focus for how we measure and deliver execution.
The pillars guide how we assess and improve performance. Each pillar is supported by key drivers that strengthen execution, promote continuous improvement and help us unlock the full potential of our businesses.
