Lafarge reorganizes management structure by country rather than product line

Source: Lafarge Group, Paris

With a new focus meant to make the company more agile and responsive, Lafarge Group leadership has decided to focus on its markets and its clients, hopefully resulting in accelerating the group’s development and profitability. The product line-based organization will be replaced with a country-based organization—thus removing a layer of management—and the reorganization of the company’s Executive Committee.

The project involves three main measures: Implementing a country-based organization, 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 will be comprised of an Executive Vice President (EVP) Innovation (Gérard Kuperfarb); an EVP Performance (Guillaume Roux); three EVPs Operations (Jean-Carlos Angulo, Thomas Farrell, Christian Herrault) responsible for supervising countrie; an EVP Strategy, Development and Public Affairs (Jean Desazars de Montgailhard); an EVP Finance (Jean-Jacques Gauthier); an EVP Organization & Human Resources (Eric Olsen); and one Senior Vice President Group Communications (Alexandra Rocca).

This 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.

“This new organization project will reinforce our efficiency, drive us to greater focus on our markets and customers’ needs, and accelerate the Group’s development through organic growth and innovation,” said Bruno Lafont, Chairman and Chief Executive Officer of Lafarge. “This transformation is a milestone for the group. It should strengthen Lafarge’s position as a key player in sustainable construction.”

The Lafarge organization project will be implemented from January 2012, once the necessary information and consultation procedures have taken place.

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