Transformation for sustainable performance
RUAG makes a significant contribution to the sovereign security of Switzerland. This promise of performance characterizes the strategic orientation of the company and the day-to-day actions of employees. The objective is to sustainably strengthen the role as technology partner of the Swiss Armed Forces and proactively align with future requirements. To ensure a consistent customer focus and the quality of the services provided for the Armed Forces, the entire organization was further developed in a targeted manner.
Political framework conditions
An essential requirement for this development are the political framework conditions, in particular with regard to strengthening capacities of security-relevant products in Switzerland. With the decision of the DDPS to support the “RIGI” project, RUAG is taking on a key role in a forward-looking initiative of the Swiss Air Force. By completing final assembly and testing of four F-35A fighter jets, the company can acquire security-relevant know-how in the areas of operations and maintenance. Another important element is the planned capacity expansion of the Nitrochemie Group through a capital increase. This strategically strengthens the industrial foundation for equipping the Armed Forces. In addition, the Federal Council has initiated the consultation process for converting RUAG MRO Holding Ltd into a specialstatute joint-stock company. This establishes the necessary framework conditions to align the core business even more consistently with the needs of the Swiss Armed Forces and harness synergies for the Armed Forces and develop skills further through targeted activities on the third market.
Continuous strategy development
As part of its strategic development, RUAG has implemented multiple initiatives in the reporting year. The aim is not to fundamentally realign the company, but to concentrate on existing strengths and expand partnerships and cooperations in a focused manner. The cornerstones of this strategy were communicated to employees in workshops and are reviewed systematically in a strategy cockpit based on relevant key performance indicators (KPIs). To strengthen strategic management, all RUAG organizational units are now represented in the company portfolio. This also ensures that the strategic directions of the subsidiaries consistently align with the overarching objectives. In this context, the strategy of the US site in Herndon, Virginia, was revised. The transformation process was successfully completed and included in particular a clear concentration of the activities as well as the discontinuation of the spare parts business.
Strengthening of the governance structures
In the reporting year, RUAG further strengthened its governance structures. Management and control processes were standardized at Group level, making it easier to ensure compliance with statutory and regulatory requirements. At the same time, internal codes of conduct and guidelines on collaboration were further developed and the Compliance area was anchored within the organization.
Structural and cultural development
In the reporting year, RUAG specifically adapted its organizational structure to the company strategy. In addition to the reintegration of RUAG Real Estate, this included the reorganization of the business areas as well as the clear separation of cost and performance responsibility between operational and supporting organizational units.
The new structure strengthens customer focus, efficiency and transparency. It enables an effective operational implementation of the strategy while also fostering trust-based, respectful collaboration as well as diversity in the company. The target company culture is based on open communication, a culture of constructive criticism and steadfast loyalty. The mission statement with its three pillars “Customer focus”, “Simple structures and processes” and “Leadership”, the binding Code of Conduct and the RUAG competency model serve as the foundation.