LensCrafters 2010 Annual Report Download - page 55

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MANAGEMENT
REPORT
Retail
The Retail business saw two strategic organizational development projects in 2010:
strengthening of the global Sun and Luxury business unit to fully utilize the Sunglass Hut (SGH) worldwide network;•
reconfiguration of the North American organization to create shared services and strengthen commercial functions (product, •
marketing, operations) devoted to the individual brands (LensCrafters, Pearle Vision, Sears Optical, Target Optical).
OPERATIONS
The process of worldwide supply chain integration was completed in 2010. Production and logistics are concentrated in
three geographical hubs (Italy, China and India, North America), with the functions supporting and serving manufacturing
and distribution (Procurement, Planning, Engineering, Quality) being managed at a global level.
MILAN HEADQUARTERS
At our headquarters, the departments responsible for strategy and control (Strategic Commercial Planning, Business
Development, Risk Management and Compliance, Asset Protection, Internal Audit) were significantly reinforced during
2010. In addition, administrative and indirect procurement services were integrated worldwide. Lastly, the progressive
implementation of SAP continued in accordance with the general plan introduced in 2008.
HUMAN RESOURCES DEVELOPMENT
Once again in 2010 Luxottica gave priority to the design and application of state–of–the–art systems for managing and
developing its human resources. We have devoted significant energy across the entire organization to strengthening our
employees’ sense of identity and belonging through an emphasis on Luxottica’s uniqueness. In particular, the principal
tools of management were refocused on supporting communication and adoption of the Luxottica characteristics –
imagination, passion, spirit of enterprise, simplicity and speed – in order for these to distinguish the conduct of every
employee in their daily work. Drawing inspiration from its characteristics, Luxottica has summarized its philosophy for
managing and developing human resources and organization in the following 12 commitments on which, beginning in
2010, it assesses Management’s leadership on a 360° basis (joint assessment by superiors, staff and colleagues):
we seek to enhance job responsibilities beginning at the more operational levels and limit hierarchical layers to those •
providing clear contributions to the organization’s coordination and integration;
our priority is to advance the resources already present in the organization, limiting outside recruitment to cases of •
necessity or exceptional opportunity;
we select candidates whose profile not only reflects the required technical skills but also closely resonates with the •
Company’s values and its expected standards of conduct;
we foster a positive and effective integration of new recruits by establishing the foundations from the outset for •
lasting, mutually satisfying relationships;
we systematically assess training needs and create, to the extent possible, specific learning and career development •
programs;
we encourage action learning and stretch assignments as the preferred method for continuously developing individual •
skills;
when assessing performance we attach equal importance to both the achievement of targets (the what) and to the •
adoption of appropriate conduct (the how). We base performance assessment on facts and figures, aiming for the
utmost clarity and objectivity of judgment;
we look to achievements and learning agility as the most relevant factors in judging an individual’s ability to perform •
at a higher level in the organization;
we structure assessment of an individual’s performance and potential, as much as possible, as a shared, group process, •
especially for more senior positions within the organization;
we assure the development of talented resources, including beyond their existing roles in the organization, and reward •
managers who develop their staff by offering them opportunities, sometimes beyond their particular organizational unit;