Electrolux 2006 Annual Report Download - page 124

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Management and Company structure
Electrolux operations are organized in fi ve business sectors that
include a total of 25 product lines. There are four Group staff units.
The Group has a decentralized corporate structure in which over-
all management of operative activities is largely performed by sec-
tor boards.
Overall Group policies and guidelines
Electrolux aims at implementing strict norms and effi cient pro-
cesses to ensure that all operations create long-term value for
shareholders and other stakeholders. This involves maintaining an
effi cient organizational structure, systems for internal control and
risk management, and transparent internal and external report-
ing.
In order to ensure a systematic approach to improving opera-
tional effi ciency and the internal control, and to ensure uniform
implementation of operational procedures, the Group has defi ned
six core processes within strategically important areas. These pro-
cesses are common to the entire Group and comprise purchasing,
brand, product development, demand fl ow, business support and
people.
Electrolux has determined that the performance of operations
shall be environmentally compatible as well as socially and ethically
responsible. A proactive approach in this regard reduces risks,
strengthens the brand, increases the motivation of personnel and
ensures good relations with the societies in which the Group oper-
ates. Key policies in this context include the Electrolux Code of
Ethics, the Electrolux Workplace Code of Conduct, and the
Electrolux Policy on Countering Corruption and Bribery.
The Group has established the Electrolux People Process, which
provides support at Group level for managers with regard to recruit-
ment and development of employees. The process also aims at
ensuring that individuals are treated fairly by the company. For more
information on the Electrolux People Process, see page 67.
Group Management
In addition to the President and CEO, Group Management includes
the fi v e sector heads and the four Group staff heads. The President
and CEO is responsible for ongoing management of the Group in
accordance with the Board’s guidelines and instructions.
Group Management holds monthly meetings to review the previ-
ous month’s results, update forecasts and plans, and discuss stra-
tegic issues.
Changes in Group Management in 2006
• Bengt Andersson left the Group and Group Management in June
2006. He was appointed President and CEO of Husqvarna AB
when the Outdoor Products operations of Electrolux were dis-
tributed to the shareholders and listed on the Stockholm Stock
Exchange as a separate company.
• Johan Bygge resigned as sector head for Major Appliances in
Europe in October 2006.
• Magnus Yngen, previously head of Floor Care and Small Appli-
ances, succeeded Johan Bygge as sector head for Major Appli-
ances in Europe in October 2006.
• Morten Falkenberg was appointed sector head of Floor Care and
Small Appliances in December 2006.
Business sectors
The sector heads have responsibility for results and balance sheets
in their respective sectors. The overall management of the sectors
is the responsibility of sector boards, which meet quarterly. The
President and CEO is the chairman of all sector boards. The sector
board meetings are attended by the President and CEO, the man-
agement of the respective sectors and the Chief Financial Offi cer
(CFO). The sector boards are responsible for monitoring on-going
operations, establishing strategies, determining sector budgets
and making decisions on major investments. The product-line
President and CEO
Hans Stråberg
* Peter Birch is CEO for Major Appliances Asia/Pacifi c and reports to Hans Stråberg. Peter Birch is not a member of Group Management.
Major Appliances
Europe
Magnus Yngen
Legal Affairs
Cecilia Vieweg
Chief Financial Offi cer
Fredrik Rystedt
Human Resources and Organizational Development
Harry de Vos
Communications and Branding
Lars Göran Johansson
Major Appliances North
and Latin America
Keith R. McLoughlin
Major Appliances
Asia/Pacifi c
Hans Stråberg*
Floor Care
and Small Appliances
Morten Falkenberg
Professional
Products
Detlef Münchow
corporate governance
120