A multi-local organization is created through:
Building on local and global strengths: Each of the Group's businesses is primarily a local business: Lafarge's products cannot economically be transported over significant distances, construction markets have strong local characteristics, proximity is important to customers, relationships with local communities are key, and much of Lafarge's know-how originates from local experience. For the Group, the challenge is to leverage its global strengths without undermining its local entrepreneurial spirit.
Making Lafarge's business units successful by leveraging the resources of a decentralized organization: Managing the tension between "local" and "global" is one of the Group's key challenges and it defines the way Lafarge is organized.
The Group relies on the initiative of its business units. To respond effectively and rapidly to local challenges and serve customers more efficiently, business units are empowered to make most of the decisions that impact them. Their autonomy is not, however, that of a single independent business. Increasingly, their actions have an impact beyond their immediate environment. Therefore, they use the Group's global experience to build their local successes, but also actively contribute to Group and division policies, tools and know-how.
Sharing clear processes and a limited number of respected and known rules: In a group of Lafarge's size, effective decision making requires clear and well-defined processes that allow everyone to understand how a decision is made and who is ultimately responsible. The main process involving all levels of the organization is Lafarge's Management Cycle. It organizes the dialog between staff and line, provides a framework for effective delegation and enables the resolution of conflicting priorities. It ensures that consistency exists between business unit commitments, Group and division objectives and the expectations of Lafarge's shareholders.
A limited number of rules is a prerequisite to efficiency and fairness. These rules should be known by everyone in the organization and implemented consistently throughout the Group, the divisions and the business units. To build a performance culture.