APC 2011 Annual Report Download - page 33

312011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
DESCRIPTION OFTHEGROUP, ANDITSSTRATEGY, MARKETS ANDBUSINESSES
1
ORGANISATIONAL SIMPLICITY ANDEFFICIENCY
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4. Organisational simplicity
andefficiency
The reorganisation of the Group has naturally led Schneider Electric to adapt its organisation so as to have a focus in
line with its strategic importance at any time, in any country and in any business.
The implementation of the new organisation was fi ne-tuned in early 2011, and was accompanied by a wide-ranging
corporate culture initiative.
Designed for introduction alongside the reorganisation, the One company programme has, in particular, facilitated
the rapid integration of acquisitions, notably that of Areva’s distribution arm, which led to the creation of the Group’s
Energy business (renamed Infrastructure end of 2011). It is also contributing to the establishment of a common
corporate culture within the Group.
4.1 An organisation focused on end markets
The year 2011 was dedicated to optimising the operation of the
organisational model rolled-out the previous year, the objective
being to pursue the advances of the three major changes from the
Company’s One programme:
•within the scope of the 1 Solution Provider change, the fi ve
business lines continued to adapt their organisation to reinforce
the closeness of their relationship with the strategic customer
segments related to the lines, whether on the level of different
countries where the Group is present or at a central level. In the
same way, they pursued the development of specifi c offers for
these various end customer segments with priority attention
given to the development of “integrated solutions, systems and
services” offer types;
•within the scope of the 1 Leader in New Economies change, the
efforts for rollout of functions and resources, with a key role in the
design of specifi c offers for the new economies, were pursued and
emphasised. The role and the scope of responsibility for Global
Functions continued to be strengthen, conforming to the road
map defi ned within the framework of the Companyprogramme;
•streamlining back offi ce functions and standardisation of
information system platforms were pursued within the scope of
the 1 Company change.
Dual responsibility – products and customers
Schneider Electric is structured into fi ve businesses. Each of the
businesses has a dual responsibility in terms of its product lines and
end-customer segments.
This dual responsibility for each business responds to the need
to be able to excel simultaneously in two areas: selling products,
which requires clear technological leadership, and selling solutions,
which means building close customer relationships and acquiring a
detailed understanding of end users’ needs.
This shift towards solutions is a major focus of the One company
program.
Each of the fi ve businesses manages its R&D, Marketing and Sales
teams and has responsibility for its global results.
A number of back-offi ce functions such as fi nance, human
resources, IT systems and marketing are handled by the Global
Functions, which have a governance role and provide services
internally.
These fi ve activities cover the following business areas:
•Power, which includes the activities of Low Voltage (electrical
distribution), LifeSpace (wiring devices and associated interface
devices) and Renewables (conversion and connection to the grid)
further to the transfer of Medium Voltage to the Energy business in
2011 (see below); the business is in charge of the end-customer
segments Residential and Marine when it relates to solutions
integrating the offers of several activities from the Group;
•Infrastructure, created in 2011 and previously named Energy,
combines all Medium Voltage activities including those from
Areva Distribution, as well as Telvent; the business is in charge
of the end-customer segments Oil and Gaz and Utilities when it
relates to solutions integrating the offers of several activities from
the Group;
•Industry, which includes Automation & Control and three end-
customer segments: OEMs, Water Treatment and Mining,
Minerals & Metals when it relates to solutions integrating the offers
of several activities from the Group, as well as Custom Sensors &
Technologies business (Sensors & Automatives), grouped under
Industry from 2011;