2568.11 kb - Compass Group

12 Compass Group PLC Annual Report 2007Chief Executive’s statementcontinuedWe are improving overheadefficiency by simplifying theway we run the businessand tighter control ofdiscretionary spend.HR shared servicesTo reduce overlap and duplication in its HR supportfunctions our US business has created a centralHuman Resources Service Centre, as a singlepoint of contact on HR related issues for over 85,000employees. This has reduced HR overhead costsby 5% and led to speedier and more effective issueresolution, reduced management intervention andimproved employee satisfaction.MAP 5 – Above unit overheadsAs a Group we have £800million of above unit costsassociated with managingthe business. MAP 5 focuseson how we create a simplerorganisational model withfewer layers of managementand less bureaucracy.Simplifying management structuresWe have made significant inroads in reducingduplicate layers of management and puttingin place simpler, affordable structuresthat give greater transparency throughthe business and improve the speed ofdecision making.To achieve this we have dismantled theprevious divisional structure creating a clearline of sight between the businesses andthe Group. This is supported by our newGroup financial and non-financial reportingframework which, combined with regularbusiness reviews of country MAP plans,gives us greater visibility and understandingof the underlying performance of eachbusiness and makes us better placed torespond to opportunities and risks.The management teams in our countriesare empowered to run and develop theirbusinesses within a ‘light’, non-bureaucraticGroup framework. This relies on a cultureof openness, honesty and transparency,supported by good communication and thedisciplines and good governance expectedof a major international group.We have taken a similar approach withinthe countries themselves, focusing firston businesses like France, Japan and theNetherlands, and reorganised how wemanage the business to create much leaner,more effective structures.In developing countries or those wherewe don’t have density we have developedsuccessful zone management structures,with a single management team overseeinga cluster of countries within a specific region,for example, Central and Eastern Europe,our Central Asia, Middle East and Africa(CAMEA) remote site businesses and theNordic region.Consolidated back office functionsAs part of reducing overlap and duplicationwe have consolidated common back officefunctions, retaining separate functions onlywhere they are genuinely sector specific.The UK and the USA are good examples ofwhere we have created a more streamlined,shared services model for HR, reducing costand improving service to our front-line teams.