The product line-based organisation will be replaced with a country-based organisation, and this will include the removal of a layer of management and the resulting reorganisation of the Executive Committee.
The project involves three main measures and these are implementing a country-based organisation, with country CEOs' responsibilities extended to cover all cement, aggregates and concrete activities, using common support functions; the removal of one hierarchical layer, with the aim of cutting out the regional level, and the resulting transformation of the structure and responsibilities of the Executive Committee, including the creation of a Performance function and an Innovation function.
The Executive Committee comprise an executive vice president (EVP) innovation; EVP performance; three EVPs operations responsible for supervising countries; an EVP strategy, development and public affairs; EVP finance, EVP organisation and human resources, and one senior vice president group communications.
The project is the natural next step following Lafarge's geographical expansion and its recent refocusing on cement, aggregates and concrete, particularly after the disposal of most of its gypsum activities. Its aim is to increase Lafarge's differentiation through the development of higher value-added products and solutions for construction.
Bruno Lafont, chairman and CEO of Lafarge, said: “This new organisation project will reinforce our efficiency. It will drive us to greater focus on our markets and customers' needs, and to accelerate the group's development through organic growth and innovation. This transformation is a milestone for the group. It should strengthen Lafarge's position as a key player in sustainable construction."
The group's organisation project will be implemented from January, 2012, once the necessary information and consultation procedures have taken place.