APC 1998 Annual Report Download - page 15

13
ways of working
Schneider 2000+
Creating value
for our shareholders
All the progress plans we have implemented aim for
competitive growth. This means growth that combines
development and profitability to secure Schneider’s
future and generate attractive long-term returns for our
shareholders. Since 1995, our operating income
has risen 56%.
To meet our goals, we will take measures to accelerate
both organic and acquisitions-led growth. We have also
increased our efforts to cut costs so as to free up the
necessary resources for growth and continue improving
profitability.
Creating value for our people
We foster personal initiative, empowerment,
and greater responsiveness at all levels
of our organization. Individual and collective
improvement plans are encouraged within
each unit and throughout the Company.
Each year, the Schneider Dynamic Quality Awards
recognize teams who have initiated projects
that create value for customers, employees
and shareholders.
Our Prosat job satisfaction survey allows us to keep
a close eye on employee needs and expectations.
Managers and their teams devise corrective measures
when necessary. In addition, the Leadership project
helps managers improve their own skills so that they
can lead and manage change.
An incentive plan that is consistent with shareholder
interests has been developed. We have enhanced
our stock option program, based on return on capital
employed; set up an annual bonus for our top executives,
based on growth in earnings per share; and launched
a new corporate savings plan that represents 1 %
of our issued capital. By linking remuneration to clearly
identified targets, we will also create wealth
for our employees.
In the past four years, the Merlin Gerin
Multi 9 circuit breaker plant in Tianjin,
China has doubled productivity,
cut inventory in half and achieved
a negligible reject rate. The project team
received a Schneider Quality Award for its
remarkable results in December, 1998.
Improvement teams foster meaningful discussion and help
nurture cross-cultural understanding and communication.
From Schneider 2000
to Schneider 2000+
To achieve our objective of competitive growth,
we have to move into a higher gear and become
even more responsive. The Schneider 2000+ program
will take our initiatives to increase growth
and competitiveness and reduce costs beyond
the year 2000. The program encourages all managers
in all units and all Country Organizations to instill
an approach of continuous improvement within their
teams. This approach will drive the changes that
need to be made to enhance our performance so we
can create value for everyone.