CONTENTS - Capgemini

56 ANNUAL
REPORT OF THE CHAIRMAN OF THE BOARD OF DIRECTORS
Capgemini
dinating policies in this sphere throughout the Group and
monitoring the performance of managers with high potential.
- Capgemini University, which provides Group and staff managers
with the additional training they require (in new technologies,
assuming commercial functions, enhancing ability to
handle large-scale projects, personal leadership development,
etc.) and also forms a natural and convivial “meeting point”.
The Strategy Department which is also in charge of the Group’s
Transformation Program, and whose main role is to provide
input and documentation for the deliberations on strategic
issues by Group Management and by the Board’s Strategy Committee.
The Communications Department, which is responsible for
defining the guiding principles of the Group’s communications
strategy and ensuring they are applied by the operating
subsidiaries.
The Sales and Alliances Department, which is in charge of
coordinating the Groups’ sales policy, monitoring the management
of major accounts and facilitating contacts with the
Group’s partners.
The Production and Quality Department, which is tasked with
designing and disseminating proprietary production methodologies
for internal use, providing certification for certain categories
of staff (project leaders, architects, etc.), overseeing the
smooth functioning and development of the Group’s delocalized
production centers and performing audits of risk-sensitive projects,
conducted by specialized teams known as “flying squads”
(93 audits of this type were carried out in 2006).
These bodies are supplemented by two ad hoc committees composed
of the Chief Executive Officer, the Chief Financial Officer
and the General Secretary. Their task is to review – within the
scope of the restrictions placed on the powers of the Chief Executive
Officer:
with the Director of Risk Management and the Director of International
Legal Affairs: major business proposals to be prepared
or discussed, offers of strategic alliances and master contracts
with clients or suppliers that meet a certain number of specific
criteria (Group Review Board).
with the Strategy Director and the M&A Director: plans for
acquisitions or divestments up for discussion, selection or
negotiation (M&A Committee).
3.2.2 Clear lines of organization at operational level
The Group’s operations are based on a decentralized model,
consisting of five Strategic Business Units (SBUs), with substantial
autonomy in their management. Two of these units are each
responsible for the worldwide management of one of the Group’s
four disciplines: one for Outsourcing Services and the other for
Local Professional Services (*). The Group’s other two disciplines
(Consulting Services and Technology Services) are organized into
REPORT 2006 Capgemini
three major geographic zones: North America, Western Europe
(the UK, France, Spain and Portugal) and Continental Europe
(the Nordic countries, Benelux, Germany, Switzerland, Austria,
Italy and the other central and eastern European countries) within
which Asia-Pacific has been provisionally classified.
Within each of these SBUs, the basic operating entity is the Business
Unit (BU). These units are deliberately kept small enough to
allow their managers to form strong relationships with their staff,
and each one operates in a manner similar to a small business,
complete with management and performance measurement tools
that allow the manager to remain in close contact with staff and
clients and to participate fully in the Group’s results and development.
BU managers are fully responsible for meeting quantifiable
targets relating to financial performance (growth, profitability,
etc.), business development, the quality of management and the
level of satisfaction among their clients.
(*) A sixth SBU is in the process of being set up, and will have worldwide responsibility
for Financial Services.
3.2.3 Clearly defined processes and methods
The proper functioning of the Group’s executive management
structure and its Business Units is rooted in compliance with
processes and methods that ensure efficient and traceable decision-making.
3.2.3.1 Formal process for delegating powers and authorizing
decisions
The decision-making process applied within the Group is based
on rules for the delegation of powers. These rules are regularly
updated, comply with the principle of subsidiarity and define
three levels of decision-making depending on the issues involved,
corresponding to the three levels of Capgemini’s organization:
the BU, for everything within its area of responsibility;
the SBU, for everything that concerns the BUs under its authority;
finally, the Group (Group Management, Executive Committee,
etc.), for everything outside the scope of responsibility of a single
SBU, for decisions which, by their nature, must be taken at Group
level (acquisitions, disposals, etc.) or for other major operations
whose impacts exceed well-defined materiality thresholds.
This process has been formalized in an “authorization matrix”
which requires both prior consultation and the provision of
sufficient information to the parties involved. Recommendations
submitted to the final decision-maker must include the views
of all interested parties as well as a balanced assessment of the
advantages and drawbacks of each of the possible solutions.
3.2.3.2 A framework of general policies and procedures
The Blue Book sets out the main principles and basic guidelines
underpinning the Group’s internal control procedures, and covers