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Key success factors

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20 Value-Driven Corporate Management<br />

Organization and management<br />

The Group’s management and system of line responsibility<br />

is structured by regions. The Executive Committee is<br />

supported by efficient corporate staff units and modern<br />

management systems.<br />

Corporate governance also means efficient management<br />

and control<br />

Holcim knows that its credibility and reputation<br />

depend on professional and transparent corporate<br />

governance. This promotes confidence on the part<br />

of investors, business partners, employees and the<br />

public at large.<br />

The overall system of corporate governance, which<br />

includes directing, monitoring and organizing the<br />

highest corporate management levels, formulating<br />

business policy principles and applying internal and<br />

external control mechanisms, forms the basis for responsible<br />

management and control of the company<br />

with focus on sustainable value creation. Although we<br />

believe we have made great progress, this is an area<br />

in which efforts never cease.<br />

The Code of Conduct defines Group-wide standards of<br />

behavior expected of all staff and it underscores our<br />

responsibility as entrepreneurs and employers. The<br />

text of the current Code of Conduct can be found on<br />

our website under www.holcim.com.<br />

vidual Executive Committee members assisted by<br />

Area Managers and Corporate Functional Managers.<br />

In addition, each Executive Committee member has<br />

functional responsibility for specific corporate areas<br />

such as Cement Manufacturing, Commercial Services<br />

or Human Resources. This dual management approach<br />

gives Holcim an ideal combination of standardized<br />

Group-wide know-how and local value creation.<br />

If our Group companies are to strengthen their cost<br />

and market leadership in their markets, they need<br />

both entrepreneurial room for maneuver and support<br />

from the Group in the form of specific know-how and<br />

predefined parameters. In our view, <strong>success</strong> depends<br />

on striking a balance between local power and autonomy<br />

on the one hand and the right degree of support<br />

and intervention from Group headquarters on the<br />

other. A coherent program of basic and continuing<br />

management training, as well as systematic <strong>success</strong>ion<br />

planning to develop candidates with executive<br />

potential at both national company and corporate<br />

level, are important <strong>factors</strong> in the drive to strengthen<br />

the Group.<br />

Dual line and functional management responsibility<br />

Holcim is globally active with around 90,000 employees<br />

on five continents. We manufacture and distribute<br />

our core products cement and aggregates in countless<br />

local markets, along with products and services based<br />

on these core products in the ready-mix concrete,<br />

asphalt and concrete products sectors. The key to the<br />

Group’s <strong>success</strong> lies in the competence of our local<br />

management teams. The operating units in over<br />

70 countries fall under the line responsibility of indi-<br />

Holcim’s efficient and lean organizational structure<br />

enables it to respond rapidly to new challenges.<br />

Holcim’s hierarchical structures are flat and its divisions<br />

of responsibility clearly defined – both at Group<br />

level and in the individual Group companies.

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