9l

) mobilize people,
share the vision

GOOD PRACTICES AT LAFARGE
Good practice 1 l p. 11
Make the reasons for change clear, credible
and compelling.
People will have a positive mindset if the need for change makes sense to them
Improving performance entails changing what we do and how we do it. It requires the efforts
of the entire organization. People will have a positive mindset towards performance if the
corresponding need to change makes sense to them, if they feel they can contribute positively
to performance improvement and if their personal interests are also served in this way.
Coherence and alignment within the organization are prerequisites for each person to contribute
to improving performance.

Get commitment by sharing an engaging vision of the future

• Develop a credible and compelling vision of the future, in line with the Division. Start
with an accurate diagnosis of the current situation of the business: this is a prerequisite for
building a coherent and credible vision.

• Share this vision to build coherence between team members, peers and hierarchy and gain
commitment from the organization.

mobilize people
mobilize people
• Inspire people towards performance improvement and demonstrate a strong commitment
through personal implication.
l 10

Take advantage of Lafarge’s experience to… Good practice 1 |

mobilize people, share the vision
Make the reasons for change clear, credible and compelling
“COMMITMENT TO EXCELLENCE” PROGRAM I
Lafarge Plasterboard (Australia)

For example
• Discover how Lafarge Plasterboard Australia succeeded in instilling a spirit of innovation
and continuous improvement
“Our database captures the performance improvement ideas generated by all employees, developing
a shared sense of contribution and ownership.”
“So far, we have logged 550 ideas in all areas – 140 have already been implemented.”
• See how Lafarge Ciments France rallies employees to meet customer, environment
and competitive challenges
By the end of 2001, the organization was at a stage where the momentum of the
Pioneer/Lafarge integration was complete. From 1999 to 2001, becoming part of a
large international business had been a key driver for change in the way the
organization worked.
Once the new processes and systems had been implemented, management
believed that the way to achieve the vision of becoming “an effective leader in
the internal lining industry” was to create a culture of innovation and continuous
improvement throughout the organization.
“We aim to further develop a culture of continuous improvement and innovation

Inform and enlighten Elicit proposals and Give each employee

through the capture of performance improvement ideas generated by all employees
all employees through- listen to what people a role that makes sense and the development of a shared sense of contribution and ownership. The key to
out the organization. have to offer. to him in the process. excellence is motivation. No idea is too small.” declared Ian McHugh, the company’s
managing director. “We decided to design and develop a process that allows
“We will have succeeded when each employee can explain what ‘DEFIS 2005’ is and tell how
everyone to contribute to the growth of the business through his or her ideas and
he is contributing to its success.”
to follow the progress of these ideas.”

mobilize people
mobilize people
• Bouskoura cement plant (Morocco) describes how it turned its performance around A Commitment to Excellence (CTE) database was developed by a wide range of
Three key elements were behind the success:
employees from all departments. Although the implementation only took one
Build a shared Reorganize, month, the whole process took about one year. Ian McHugh explains: “One of the
diagnosis, involving Make clear priori- train and capitalize reasons for this was that it required mobilizing cross-functional teams. These were
company management, ties, and build on early successes a key part of the process since communication had been identified as a weakness
staff and plant shared action plans. to build momentum
in the business unit.”
management. and trust.

“In two years, the kiln reliability increased from 88% to 95%.”
• Benefit from the experience of the Rahmstorf roofing plant (Germany), which
successfully involved the shop floor in performance improvement
Among the identified key factors of success:
> Top management commitment.
> Make progress perceptible and everyone share in the success.
> Invest appropriately in up-front training in the 5S method.
“At first, manufacturing did not support the decision as it meant changing their
existing database. We had to work together at the cross-functional team and senior
management level to ensure that the new database incorporated the specific
needs of manufacturing but also the needs of the whole organization.”
A simple but effective database that could be understood and used to motivate
everyone in the organization was developed:
• Employee logs ideas/suggestions into a Lotus Notes Database/Commitment to
Excellence Program (a paperless system).

Discover more in the cases that follow…


UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> All employees have the opportunity
to make suggestions and contribute to
improving performance within the work-
place.
> Management have developed a culture
of cooperation and responsibility in the
organization.
PROCESS |
> Through CTE, the organization is aligned
with the Division and the need to continually
improve performance and its commitment
to excellence.
> The process encourages active communi-
cation and cooperation between manage-
ment and employees about progress and
leads to an increased focus on the compe-
tition and customer needs.
TOOLS |
> Simple but effective tool which meets
the needs of the whole organization.
> The CTE database is continually being
improved - it is a simple but dynamic and
definitely not a static process.
GYPSUM CASE PRESENTED BY:
Margaret O’Neill, senior product &
merchandising manager
Ian McHugh, managing director
Good practice 1 | ...
• Supervisor/manager discusses idea with employee and takes the decision to move forward
and recommend further action or to stop there.
• Manager/steering committee reviews the recommended action. Decision to progress or
close idea is made. If progressed, action is assigned to person for completion. If an idea
is declined the manager or steering committee justifies the decision taken.
• The person having proposed the idea signs off once the idea is implemented/closed.
• The database automatically generates reports; e.g. number of ideas implemented per site.
“Commitment to Excellence” was launched in February 2002. The ease of access
to the database via Lotus Notes and the fact that the idea proposer can view the
progress of the idea on-line encouraged early adoption by the majority of employees.
Also to encourage use of the database the company provides regular updates on
the project in its monthly newsletter, BoardTalk. At the end of the year an awards
ceremony was held at the ‘Meet the Division’ event to celebrate the best ideas.
“So far we have logged 550 ideas in all areas: Customer satisfaction, Quality,
Environment, Safety, Product innovation, and Sharing experience. Of these 400
were accepted and 140 already implemented” said Margaret O’Neill, Senior
Product & Merchandising Manager and CTE project coordinator. CTE now covers
all areas of the business and there is more information sharing where previously
people may not have realized that the information they have could assist another
department. CTE has created a culture of ownership, contribution and responsibility.
Employees accept that it is not enough to just to talk about a good idea but they
can now bring it to management’s attention through CTE and follow up on the
implementation. They appreciate management‘s recognition.
Ian McHugh concludes: “While it is difficult at this time to measure the economic
impact it is believed that the ideas regarding workplace efficiency and of course
safety will have a long-term economic impact. One of the most visible areas of the
effect of this innovation is that each person is conscious of and takes responsibility
for their own safety and the safety of others. This is shown by the number of safety
CTE ideas which can be identified and categorized and then be promptly acted upon.”
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Leading Change Driving for Results
13 l
PERFORMANCE IMPROVEMENT I Lafarge Aggregates Ltd (UK)
“There had been a consolidation in the UK industry leaving five major players with
Lafarge Aggregates being a distant fifth. We needed not just to improve earnings
but to differentiate ourselves and to change dramatically and in a professional
way to ensure sustainability” said Dyfrig James, deputy managing director of
Lafarge Aggregates Ltd.
In 2001 Lafarge Aggregates Ltd recognized that, even though the systems were in
place, it was not converting the performance programs Top, Rock and Pave
from being a series of processes on the side of the business into “the way of doing
business around here”. We set about a plan to reach this objective:
> Change the organization structure to have dedicated performance managers for
each product at every level in the business and align structure with Divisional
Performance Team.
The new organizational structure was communicated with a clear vision of short, medium
and long term goals. Lines of responsibility and accountability were defined for geographical
mobilize people
mobilize people
business managers, product line performance managers and functional experts. This
required management changes. All senior managers heading up these positions formed an
“Operating Committee” for the Company with a shared vision and a shared responsibility.
They all then helped to galvanize the organization to meet its goals.
> Improve the performance of each product line by setting stretch targets.
The stretched targets for each product line were initially set top down using identified Key
Performance Indicators where improvement could be quantified to the bottom line.
Detailed action plans were produced bottom up in the organization to give credibility to tar-
gets. Managers then believed that the stretch targets could be achieved. Ultimately these
targets were set into “a performance plan for the business” which became aligned with
the budget. In addition, “Increasing the number of salespeople was seen as clear signal
that Lafarge was serious” quoted Dyfrig James.
l 12
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> All employees have the opportunity
to make suggestions and contribute to
improving performance within the work-
place.
> Management have developed a culture
of cooperation and responsibility in the
organization.
PROCESS |
> Through CTE, the organization is aligned
with the Division and the need to continually
improve performance and its commitment
to excellence.
> The process encourages active communi-
cation and cooperation between manage-
ment and employees about progress and
leads to an increased focus on the compe-
tition and customer needs.
TOOLS |
> Simple but effective tool which meets
the needs of the whole organization.
> The CTE database is continually being
improved - it is a simple but dynamic and
definitely not a static process.
GYPSUM CASE PRESENTED BY:
Margaret O’Neill, senior product &
merchandising manager
Ian McHugh, managing director
Good practice 1 | ...
• Supervisor/manager discusses idea with employee and takes the decision to move forward
and recommend further action or to stop there.
• Manager/steering committee reviews the recommended action. Decision to progress or
close idea is made. If progressed, action is assigned to person for completion. If an idea
is declined the manager or steering committee justifies the decision taken.
• The person having proposed the idea signs off once the idea is implemented/closed.
• The database automatically generates reports; e.g. number of ideas implemented per site.
“Commitment to Excellence” was launched in February 2002. The ease of access
to the database via Lotus Notes and the fact that the idea proposer can view the
progress of the idea on-line encouraged early adoption by the majority of employees.
Also to encourage use of the database the company provides regular updates on
the project in its monthly newsletter, BoardTalk. At the end of the year an awards
ceremony was held at the ‘Meet the Division’ event to celebrate the best ideas.
“So far we have logged 550 ideas in all areas: Customer satisfaction, Quality,
Environment, Safety, Product innovation, and Sharing experience. Of these 400
were accepted and 140 already implemented” said Margaret O’Neill, Senior
Product & Merchandising Manager and CTE project coordinator. CTE now covers
all areas of the business and there is more information sharing where previously
people may not have realized that the information they have could assist another
department. CTE has created a culture of ownership, contribution and responsibility.
Employees accept that it is not enough to just to talk about a good idea but they
can now bring it to management’s attention through CTE and follow up on the
implementation. They appreciate management‘s recognition.
Ian McHugh concludes: “While it is difficult at this time to measure the economic
impact it is believed that the ideas regarding workplace efficiency and of course
safety will have a long-term economic impact. One of the most visible areas of the
effect of this innovation is that each person is conscious of and takes responsibility
for their own safety and the safety of others. This is shown by the number of safety
CTE ideas which can be identified and categorized and then be promptly acted upon.”
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Leading Change Driving for Results
PERFORMANCE IMPROVEMENT I Lafarge Aggregates Ltd (UK)
“There had been a consolidation in the UK industry leaving five major players with
Lafarge Aggregates being a distant fifth. We needed not just to improve earnings
but to differentiate ourselves and to change dramatically and in a professional
way to ensure sustainability” said Dyfrig James, deputy managing director of
Lafarge Aggregates Ltd.
In 2001 Lafarge Aggregates Ltd recognized that, even though the systems were in
place, it was not converting the performance programs Top, Rock and Pave
from being a series of processes on the side of the business into “the way of doing
business around here”. We set about a plan to reach this objective:
> Change the organization structure to have dedicated performance managers for
each product at every level in the business and align structure with Divisional
Performance Team.
The new organizational structure was communicated with a clear vision of short, medium
and long term goals. Lines of responsibility and accountability were defined for geographical
mobilize people
mobilize people
business managers, product line performance managers and functional experts. This
required management changes. All senior managers heading up these positions formed an
“Operating Committee” for the Company with a shared vision and a shared responsibility.
They all then helped to galvanize the organization to meet its goals.
> Improve the performance of each product line by setting stretch targets.
The stretched targets for each product line were initially set top down using identified Key
Performance Indicators where improvement could be quantified to the bottom line.
Detailed action plans were produced bottom up in the organization to give credibility to tar-
gets. Managers then believed that the stretch targets could be achieved. Ultimately these
targets were set into “a performance plan for the business” which became aligned with
the budget. In addition, “Increasing the number of salespeople was seen as clear signal
that Lafarge was serious” quoted Dyfrig James.

UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> Decisions and accountability can be
delegated down the line once people are
given the right tools and training.
> It is important to show that management
is united and serious about the new way
of doing businesses.
> Doing or implementing what is promised
and making it known increases motivation
for change.
PROCESS |
> Time was taken to align management
before making the changes so that a
common message was sent out.
> Instilling a performance culture takes time
and requires commitment from managers.
TOOLS |
> Common measures and reliable numbers
enable benchmarking, create an effective
common language and give confidence.
> Tools better adapted to the job and way
of doing business are helpful to the person
in charge.
AGGREGATES & CONCRETE CASE
PRESENTED BY:
Dyfrig James, managing director
> Ensure that individuals had the right tools for the programs which were being used
as “the way of doing business” with a mindset of accountability and execution.
Certain parts of the business grabbed the execution mindset early and these were used as
best practice examples. These managers then became advocates of the cultural change
required. “League tables of results” were distributed around the business for benchmarking
and managers were constantly asked about KPI improvements in their units as well as
financial results. These KPI “league tables” were pushed down as far as site level to give
everybody a role to play and to encourage competition between sites to improve. “Once
the company provided reliable numbers and guidelines, I felt that real change was under-
way,” said one of the quarry managers. In addition an active participation in the Division
Performance Week by both Performance Managers and Geographic Managers helped to
understand the worldwide position and network on like-minded issues.
> Alignment of objectives and priorities between A&C Division and the BU.
A constructive, open but challenging relationship was established between the BU and
DPBG of A&C Division by agreeing ‘a contract’ in establishing the objectives for the year
ahead and prioritizing the work based on value creation. Both teams were then aligned and
owned the same objectives and worked in unison whereas this had not always historically
been the case. This has led to a value creating and trusting relationship.
Dyfrig James concludes: “The full cultural change is not yet achieved as this will
take time to infiltrate around the organization. However a considerable step
change has been achieved and a momentum has been created which is driving
improved performance in all products in spite of flat market conditions. We
achieved a +16% improvement in current Reaff and +14% EVA improvement
between 2001 and 2002. Stretch targets (+ 16% on 2002) have been agreed for 2003
and further step-change programs are planned.”
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Vision and Purpose Leading Change
Good practice 1 | ...
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> Explain the need for change, coming from
customers and competition.
> Keep a feeling of proximity with the proj-
ect among the employees by continuously
highlighting to them their contribution to
the national projects and to the company’s
vision. Remember that overall success is
only guaranteed by the multiplication of
local actions and successes.
> Keep communicating in order to give
people feedback on where we are in terms
of both successes and failures.
> Remember that no change can be made
without taking into consideration peoples’
feelings and emotions.
> Get the managers to support people in
order to reduce the risk associated with
change.
…
15 l
“DÉFIS 2005” I Lafarge Ciments (France)
“Our context is changing and the rate of change is accelerating. Our customers
are more and more demanding and their requirements are getting more precise,
opinion leaders surrounding our business are more and more concerned about the
environment, our competitors get better every day , our products are in competition
with other materials (steel, glass…),” declared Alain Crouÿ, the general manager of
Lafarge Ciments. “To meet these challenges and drive the changes, Lafarge
Ciments has no other way than to liberate even more of each person’s energy.”
The “Défis 2005” project was launched, to rally all employees toward a shared
vision and let them contribute more to the success of the company. Défis 2005 is
structured along three strategic axes: differentiation of our products and services
(to build customer loyalty and consolidate our premium price), competitiveness
(industrial excellence) and reactivity (culture change: management culture, cus-
tomer culture, economic culture).
From a strategic analysis of the external context and the situation of the company,
the Executive Committee has built a vision for Lafarge Ciments with the
Operational Committee (direct reports to Executive Committee) for the coming five
years. It was called “Défis 2005”.
mobilize people
mobilize people
On that basis, each member of the Operational Committee created with his direct
reports their own “local” vision. They build their own project for their plant, com-
mercial region or staff department. “This first stage has allowed local appropriation
of the national vision and built consistency between the company’s needs and
objectives of each unit,” said the commercial manager.
During a short period of time (two months), one day general meetings were organized
in the units by members of the Operational Committee and their teams, with repre-
sentatives of the Executive Committee, to present and explain to all employees the
vision of the company and the local project for their unit. “Our working group on
customer service and its contribution to customer satisfaction, with our colleagues
from the Southwest region and the Toulouse commercial agency is about to propose
a service charter to our customers. Thanks to this meeting with the company
bosses, we know that our ideas and actions are in line with concerns of the com-
pany, and the way people are thinking. We feel that we are really going to achieve
something,” said the person responsible for shipping at Port-la-Nouvelle plant.
A “Défis 2005” quarterly newsletter was created, to be sent to all employees, to
l 14
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> Decisions and accountability can be
delegated down the line once people are
given the right tools and training.
> It is important to show that management
is united and serious about the new way
of doing businesses.
> Doing or implementing what is promised
and making it known increases motivation
for change.
PROCESS |
> Time was taken to align management
before making the changes so that a
common message was sent out.
> Instilling a performance culture takes time
and requires commitment from managers.
TOOLS |
> Common measures and reliable numbers
enable benchmarking, create an effective
common language and give confidence.
> Tools better adapted to the job and way
of doing business are helpful to the person
in charge.
AGGREGATES & CONCRETE CASE
PRESENTED BY:
Dyfrig James, managing director
> Ensure that individuals had the right tools for the programs which were being used
as “the way of doing business” with a mindset of accountability and execution.
Certain parts of the business grabbed the execution mindset early and these were used as
best practice examples. These managers then became advocates of the cultural change
required. “League tables of results” were distributed around the business for benchmarking
and managers were constantly asked about KPI improvements in their units as well as
financial results. These KPI “league tables” were pushed down as far as site level to give
everybody a role to play and to encourage competition between sites to improve. “Once
the company provided reliable numbers and guidelines, I felt that real change was under-
way,” said one of the quarry managers. In addition an active participation in the Division
Performance Week by both Performance Managers and Geographic Managers helped to
understand the worldwide position and network on like-minded issues.
> Alignment of objectives and priorities between A&C Division and the BU.
A constructive, open but challenging relationship was established between the BU and
DPBG of A&C Division by agreeing ‘a contract’ in establishing the objectives for the year
ahead and prioritizing the work based on value creation. Both teams were then aligned and
owned the same objectives and worked in unison whereas this had not always historically
been the case. This has led to a value creating and trusting relationship.
Dyfrig James concludes: “The full cultural change is not yet achieved as this will
take time to infiltrate around the organization. However a considerable step
change has been achieved and a momentum has been created which is driving
improved performance in all products in spite of flat market conditions. We
achieved a +16% improvement in current Reaff and +14% EVA improvement
between 2001 and 2002. Stretch targets (+ 16% on 2002) have been agreed for 2003
and further step-change programs are planned.”
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Vision and Purpose Leading Change
Good practice 1 | ...
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> Explain the need for change, coming from
customers and competition.
> Keep a feeling of proximity with the proj-
ect among the employees by continuously
highlighting to them their contribution to
the national projects and to the company’s
vision. Remember that overall success is
only guaranteed by the multiplication of
local actions and successes.
> Keep communicating in order to give
people feedback on where we are in terms
of both successes and failures.
> Remember that no change can be made
without taking into consideration peoples’
feelings and emotions.
> Get the managers to support people in
order to reduce the risk associated with
change.
…
“DÉFIS 2005” I Lafarge Ciments (France)
“Our context is changing and the rate of change is accelerating. Our customers
are more and more demanding and their requirements are getting more precise,
opinion leaders surrounding our business are more and more concerned about the
environment, our competitors get better every day , our products are in competition
with other materials (steel, glass…),” declared Alain Crouÿ, the general manager of
Lafarge Ciments. “To meet these challenges and drive the changes, Lafarge
Ciments has no other way than to liberate even more of each person’s energy.”
The “Défis 2005” project was launched, to rally all employees toward a shared
vision and let them contribute more to the success of the company. Défis 2005 is
structured along three strategic axes: differentiation of our products and services
(to build customer loyalty and consolidate our premium price), competitiveness
(industrial excellence) and reactivity (culture change: management culture, cus-
tomer culture, economic culture).
From a strategic analysis of the external context and the situation of the company,
the Executive Committee has built a vision for Lafarge Ciments with the
Operational Committee (direct reports to Executive Committee) for the coming five
years. It was called “Défis 2005”.
mobilize people
mobilize people
On that basis, each member of the Operational Committee created with his direct
reports their own “local” vision. They build their own project for their plant, com-
mercial region or staff department. “This first stage has allowed local appropriation
of the national vision and built consistency between the company’s needs and
objectives of each unit,” said the commercial manager.
During a short period of time (two months), one day general meetings were organized
in the units by members of the Operational Committee and their teams, with repre-
sentatives of the Executive Committee, to present and explain to all employees the
vision of the company and the local project for their unit. “Our working group on
customer service and its contribution to customer satisfaction, with our colleagues
from the Southwest region and the Toulouse commercial agency is about to propose
a service charter to our customers. Thanks to this meeting with the company
bosses, we know that our ideas and actions are in line with concerns of the com-
pany, and the way people are thinking. We feel that we are really going to achieve
something,” said the person responsible for shipping at Port-la-Nouvelle plant.
A “Défis 2005” quarterly newsletter was created, to be sent to all employees, to

UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
… of the local contributions to the project.
PROCESS |
> Respect the three stages of a project
appropriation by all employees:
1. Sharing the vision: communicate and
explain it everywhere in the company,
build enthusiasm and open the company
to the external world.
2. Getting the conviction on the vision at
each management level: engage in a
dialogue on each site with managers
first, then employees, to challenge the
vision, enrich it with local elements and
translate it into local projects and objec-
tives. Then, follow up.
3. Building up the involvement of each
employee in the action: develop a man-
agement culture which gives every
employee a real autonomy and encourage
him/her to become an actor in his/her
own local projects and see his/her con-
tribution to the company vision.
CEMENT CASE PRESENTED BY:
Alain Crouÿ, general manager
communicate on the evolution of the economic and environmental context, cus-
tomer developments, competition and our internal developments, and the evolution
of the ten indicators chosen to follow the results of the project and the promotion
“In June 2002, we organised a national meeting with 20% of the employees, from
all sites, functions and levels, to communicate on Défis 2005, reiterate its main
messages, exemplify the results of national projects and of numerous ongoing
local projects. More than 80 people appeared on stage, managers, supervisors,
workers, secretaries, to testify about the projects they were part of and present
their successes and difficulties. This reinforced the credibility of the whole
process and of the management culture of transversal cooperation, teamwork
and employee involvement,” quoted one member of the executive committee.
“We all worked hard as a team with the different departments in the plant to find
a solution for the palletizer that had dropped in productivity after the 35 kg bags
were introduced. We are proud of having been able to adapt it using our own
resources, without having to invest,” said the head of maintenance of the Contes-
les-Pins plant.
Specific training programs bring additional competencies and strengths as
required, either to the specific projects or to the cultural changes, particularly the
management culture for which training programs are conducted for managers
and supervisors.
All this is structured along the three axes of Défis 2005, differentiation, competi-
tiveness and reactivity to keep consistency at all levels. Communication and
sharing of experiences on common projects as well as on the management of
the whole process is encouraged. “All this is not easy, we are always coming up
against blocks, either hierarchical or cultural. Contributing is never easy and we have
to encourage it. We will have succeeded when each employee can explain what is
‘Défis 2005’ and say how he is contributing to its success,” concluded Alain Crouÿ.
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Vision and Purpose Customer Focus
Good practice 1 | ...
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> Strong undertaking and clear commitment
from management including a long-term
view.
> Diagnosis done by plant management,
with the help and assistance of experts,
creating trust between people in the plant.
> Solutions dealt with the fundamentals of
the business and the mastery of the equip-
ment and processes thereby creating pride
in the work and aligning the interest of the
employees with that of the company.
> Training of individuals and teams and
support in case of difficulties.
> Competencies developed within the
plant so that progress could become self-
sustaining. Adapted training for engineers
and supervisors, and line operators.
…
17 l
BOUSKOURA CEMENT PLANT I Lafarge Ciments Maroc (Morocco)
“In 2000, despite the existing action plans the performance at Bouskoura was
stagnating. The plant personnel were spending their time fixing ‘incidents’ and
quality problems rather than adopting a methodical approach to improve the fun-
damentally low performance of the plant (e.g. reliability of 88%). Bouskoura is the
key plant in our industrial organization in Morocco and increased production was
required to meet the market needs and our sales plans. We wanted to achieve this
without large investments which would compromise our competitiveness and at
the same time meet the expectations of our partners (Lafarge Ciments Maroc is
50% owned by Lafarge),” said Jean-Marie Schmitz the general manager. “We
decided that an in-depth and shock approach was necessary.”
The first step was to focus and mobilize all of the company’s management around
the plant and prepare a new analysis of the problems. After this, we focused our
priorities on solutions that would bring the highest return. This also meant concen-
trating exclusively on the essential work (the plant did not prepare a Plant
Improvement Plan (PIP) in 2001, the Purchasing Performance Plan (PPP) was
delayed etc.), taking a step by step approach and adapting the organization at the
plant. We also accepted a temporary reduction in performance and earnings in
mobilize people
mobilize people
order to have higher results two years down the road.
Saad Sebbar, who was the plant manager in 2000, explains: “Our initial problem was
to convince the plant management and supervisors of the seriousness of the situa-
tion and that progress was possible by concentrating on the fundamentals with help
and training from the technical resources of the company (local and division).”
CTI (Centre Technique Interunités) used the CKHC (Cement Know-How Center)
database to show the performance gap with other plants. Saad Sebbar worked
closely with his team to build confidence and to ensure that this diagnosis was
shared. Secondly the plant management and supervisors had to become more
responsible and more able to make decisions. This involved some important reor-
ganizations, personnel changes and training. In addition, a temporary organization
was instituted so that each of the two kilns had its own production engineer and
teams. It was evident that Lafarge was serious about these changes and that
there was no going back to the old ways. The plant manager put a high priority on
communication about the changes and with the help of the Human Resources
department introduced social changes, at the same time as more responsibility
was expected of the teams. A new way of working was introduced with the help of
l 16
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
… of the local contributions to the project.
PROCESS |
> Respect the three stages of a project
appropriation by all employees:
1. Sharing the vision: communicate and
explain it everywhere in the company,
build enthusiasm and open the company
to the external world.
2. Getting the conviction on the vision at
each management level: engage in a
dialogue on each site with managers
first, then employees, to challenge the
vision, enrich it with local elements and
translate it into local projects and objec-
tives. Then, follow up.
3. Building up the involvement of each
employee in the action: develop a man-
agement culture which gives every
employee a real autonomy and encourage
him/her to become an actor in his/her
own local projects and see his/her con-
tribution to the company vision.
CEMENT CASE PRESENTED BY:
Alain Crouÿ, general manager
communicate on the evolution of the economic and environmental context, cus-
tomer developments, competition and our internal developments, and the evolution
of the ten indicators chosen to follow the results of the project and the promotion
“In June 2002, we organised a national meeting with 20% of the employees, from
all sites, functions and levels, to communicate on Défis 2005, reiterate its main
messages, exemplify the results of national projects and of numerous ongoing
local projects. More than 80 people appeared on stage, managers, supervisors,
workers, secretaries, to testify about the projects they were part of and present
their successes and difficulties. This reinforced the credibility of the whole
process and of the management culture of transversal cooperation, teamwork
and employee involvement,” quoted one member of the executive committee.
“We all worked hard as a team with the different departments in the plant to find
a solution for the palletizer that had dropped in productivity after the 35 kg bags
were introduced. We are proud of having been able to adapt it using our own
resources, without having to invest,” said the head of maintenance of the Contes-
les-Pins plant.
Specific training programs bring additional competencies and strengths as
required, either to the specific projects or to the cultural changes, particularly the
management culture for which training programs are conducted for managers
and supervisors.
All this is structured along the three axes of Défis 2005, differentiation, competi-
tiveness and reactivity to keep consistency at all levels. Communication and
sharing of experiences on common projects as well as on the management of
the whole process is encouraged. “All this is not easy, we are always coming up
against blocks, either hierarchical or cultural. Contributing is never easy and we have
to encourage it. We will have succeeded when each employee can explain what is
‘Défis 2005’ and say how he is contributing to its success,” concluded Alain Crouÿ.
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Vision and Purpose Customer Focus
Good practice 1 | ...
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
BEHAVIOR |
> Strong undertaking and clear commitment
from management including a long-term
view.
> Diagnosis done by plant management,
with the help and assistance of experts,
creating trust between people in the plant.
> Solutions dealt with the fundamentals of
the business and the mastery of the equip-
ment and processes thereby creating pride
in the work and aligning the interest of the
employees with that of the company.
> Training of individuals and teams and
support in case of difficulties.
> Competencies developed within the
plant so that progress could become self-
sustaining. Adapted training for engineers
and supervisors, and line operators.
…
BOUSKOURA CEMENT PLANT I Lafarge Ciments Maroc (Morocco)
“In 2000, despite the existing action plans the performance at Bouskoura was
stagnating. The plant personnel were spending their time fixing ‘incidents’ and
quality problems rather than adopting a methodical approach to improve the fun-
damentally low performance of the plant (e.g. reliability of 88%). Bouskoura is the
key plant in our industrial organization in Morocco and increased production was
required to meet the market needs and our sales plans. We wanted to achieve this
without large investments which would compromise our competitiveness and at
the same time meet the expectations of our partners (Lafarge Ciments Maroc is
50% owned by Lafarge),” said Jean-Marie Schmitz the general manager. “We
decided that an in-depth and shock approach was necessary.”
The first step was to focus and mobilize all of the company’s management around
the plant and prepare a new analysis of the problems. After this, we focused our
priorities on solutions that would bring the highest return. This also meant concen-
trating exclusively on the essential work (the plant did not prepare a Plant
Improvement Plan (PIP) in 2001, the Purchasing Performance Plan (PPP) was
delayed etc.), taking a step by step approach and adapting the organization at the
plant. We also accepted a temporary reduction in performance and earnings in
mobilize people
mobilize people
order to have higher results two years down the road.
Saad Sebbar, who was the plant manager in 2000, explains: “Our initial problem was
to convince the plant management and supervisors of the seriousness of the situa-
tion and that progress was possible by concentrating on the fundamentals with help
and training from the technical resources of the company (local and division).”
CTI (Centre Technique Interunités) used the CKHC (Cement Know-How Center)
database to show the performance gap with other plants. Saad Sebbar worked
closely with his team to build confidence and to ensure that this diagnosis was
shared. Secondly the plant management and supervisors had to become more
responsible and more able to make decisions. This involved some important reor-
ganizations, personnel changes and training. In addition, a temporary organization
was instituted so that each of the two kilns had its own production engineer and
teams. It was evident that Lafarge was serious about these changes and that
there was no going back to the old ways. The plant manager put a high priority on
communication about the changes and with the help of the Human Resources
department introduced social changes, at the same time as more responsibility
was expected of the teams. A new way of working was introduced with the help of

UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
… departments involved thereby creating a team spirit for the plant as a whole.
PROCESS |
> Mobilization of top management and
staff around the same objectives, aligned
with the plant team.
> Strong support from technical local staff
and CTI.
> Prioritization of objectives and protection
of Bouskoura from outside demands.
> Heavy communication by factory manager.
> Frequent feedback and meetings adapted
to degree of management maturity in the
plant.
> Role and responsibility changes accom-
panied by social changes. Close involve-
ment of HR. Emphasis on the social and
human responsibilities of management.
TOOLS |
> Reliable data and common language from
CKHC database and from the company’s
management accounting team.
> Systematic reporting of results at all levels
in the organization showing where we are
and the progress achieved.
CEMENT CASE PRESENTED BY:
Jean-Paul Barrière, VP manufacturing
Saad Sebbar, ex plant manager, Bouskoura
Good practice 1 | ...
a consultant. Short meetings were planned at the beginning of each day to decide
what was to be achieved and at the end of each day to see if it had been
achieved. Any problems encountered were documented and discussed with all
“After the teams had seen the results on the fundamentals (kiln efficiency, raw mix
regularity, cement quality etc.) a form of ‘virtuous circle’ developed in the way
people worked and we got results in areas which were outside the initial scope
(Fly ash, kWH per tonne in grinding …),” concluded Saad Sebbar.
In parallel to the organizational aspects an investment program was implemented
to obtain a better control of the plant process (raw-mix, combustion, …).
In two years the kiln reliability increased from 88% to 95%, grinding capacity increase
by 20% without any major investments and thereby eliminating a bottleneck.
In 2002, the plant wanted to consolidate these gains and go further. A PIP has been
prepared, the plant is running again with one production engineer for the two lines,
and the plant is ready to introduce new destabilizing factors such as the use of
alternative fuels.
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Leading People Leading Change Driving for Results
19 l
“5S” PROGRAM AT RAHMSTORF PLANT I Lafarge Dachsysteme (Germany).
“Our results in Germany have to improve. To achieve this, it is vital to release the
energy of our employees, encourage everyone to be involved and get people to
work as a team, and this around a project which would make our jobs better,” said
the manager of the Rahmstorf plant. “For tile production, reducing variations,
increasing the regularity of the process and the reliability of the equipment is key.
For that, people needed to work in a clear and organized environment. By seeing
these results they are interested in going further. Therefore we launched the ‘5S’
method, which was promoted by the Division.”
“5S” is a system of steps and procedures that can be used by individuals and
teams to arrange work areas in the best manner to optimize performance, and pro-
mote safe working conditions. This is achieved by concentrating on organization,
neatness, cleaning, standardization and self-discipline in the working areas.
Employees are made fully responsible for making this happen and keeping it going.
It also encourages people to identify and put into place, either individually or as a
team, new progress actions.
Management had a decisive role in this process by showing how important this
mobilize people
mobilize people
method was to them and putting in place permanent resources for its application.
The workforce was led through the “5S” method by an external trainer, at the ini-
tiative of the plant manager who wanted to make the change successful. This
trainer was an expert in the method and spoke the same language as the factory
workers. He had the credibility of someone from outside the organization who tend
to be more believable when introducing new management systems.
At the same time, the supervisors were trained for team management in order to
ensure that the method was perpetuated and to ensure that ideas emerging from
the shop floor were heard and implemented. “It was incredible to see how we
could improve our environment. Before, I was the only one who would find a spare
part in the store. Now it is organized and everyone can use it. Our team’s attitude
is much more positive,” said a foreman.
l 18
UNDERLYING DRIVERS OF
THE PERFORMANCE PROCESS
… departments involved thereby creating a team spirit for the plant as a whole.
PROCESS |
> Mobilization of top management and
staff around the same objectives, aligned
with the plant team.
> Strong support from technical local staff
and CTI.
> Prioritization of objectives and protection
of Bouskoura from outside demands.
> Heavy communication by factory manager.
> Frequent feedback and meetings adapted
to degree of management maturity in the
plant.
> Role and responsibility changes accom-
panied by social changes. Close involve-
ment of HR. Emphasis on the social and
human responsibilities of management.
TOOLS |
> Reliable data and common language from
CKHC database and from the company’s
management accounting team.
> Systematic reporting of results at all levels
in the organization showing where we are
and the progress achieved.
CEMENT CASE PRESENTED BY:
Jean-Paul Barrière, VP manufacturing
Saad Sebbar, ex plant manager, Bouskoura
Good practice 1 | ...
a consultant. Short meetings were planned at the beginning of each day to decide
what was to be achieved and at the end of each day to see if it had been
achieved. Any problems encountered were documented and discussed with all
“After the teams had seen the results on the fundamentals (kiln efficiency, raw mix
regularity, cement quality etc.) a form of ‘virtuous circle’ developed in the way
people worked and we got results in areas which were outside the initial scope
(Fly ash, kWH per tonne in grinding …),” concluded Saad Sebbar.
In parallel to the organizational aspects an investment program was implemented
to obtain a better control of the plant process (raw-mix, combustion, …).
In two years the kiln reliability increased from 88% to 95%, grinding capacity increase
by 20% without any major investments and thereby eliminating a bottleneck.
In 2002, the plant wanted to consolidate these gains and go further. A PIP has been
prepared, the plant is running again with one production engineer for the two lines,
and the plant is ready to introduce new destabilizing factors such as the use of
alternative fuels.
KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Leading People Leading Change Driving for Results
“5S” PROGRAM AT RAHMSTORF PLANT I Lafarge Dachsysteme (Germany).
“Our results in Germany have to improve. To achieve this, it is vital to release the
energy of our employees, encourage everyone to be involved and get people to
work as a team, and this around a project which would make our jobs better,” said
the manager of the Rahmstorf plant. “For tile production, reducing variations,
increasing the regularity of the process and the reliability of the equipment is key.
For that, people needed to work in a clear and organized environment. By seeing
these results they are interested in going further. Therefore we launched the ‘5S’
method, which was promoted by the Division.”
“5S” is a system of steps and procedures that can be used by individuals and
teams to arrange work areas in the best manner to optimize performance, and pro-
mote safe working conditions. This is achieved by concentrating on organization,
neatness, cleaning, standardization and self-discipline in the working areas.
Employees are made fully responsible for making this happen and keeping it going.
It also encourages people to identify and put into place, either individually or as a
team, new progress actions.
Management had a decisive role in this process by showing how important this
mobilize people
mobilize people
method was to them and putting in place permanent resources for its application.
The workforce was led through the “5S” method by an external trainer, at the ini-
tiative of the plant manager who wanted to make the change successful. This
trainer was an expert in the method and spoke the same language as the factory
workers. He had the credibility of someone from outside the organization who tend
to be more believable when introducing new management systems.
At the same time, the supervisors were trained for team management in order to
ensure that the method was perpetuated and to ensure that ideas emerging from
the shop floor were heard and implemented. “It was incredible to see how we
could improve our environment. Before, I was the only one who would find a spare
part in the store. Now it is organized and everyone can use it. Our team’s attitude
is much more positive,” said a foreman.
 “The process is ongoing and one important step just completed is the creation of a
UNDERLYING DRIVERS OF SPiD center (note: SPiD is the industrial performance program of the Roofing
THE PERFORMANCE PROCESS Division). This is a place where the employees can inform each other and discuss
the performance results of the plant with the help of the supervisor. However the
BEHAVIOR |
spontaneous exchange of information has yet to be achieved and is probably the
> Ensuring the durability of the method put most difficult step,” said the plant manager.
in place is difficult and requires a constant
follow-up by management.

> Management’s full commitment to the

project reduces the risk for the individuals
associated with change.

> Behaviour changes, such as asking shop-

floor workers for their input, taking initiatives,
speaking up if there is a problem, or ques-
tioning a colleague who does not play by
the rules need to be triggered and supported
for several months before the new behaviors
become entrenched.

> The role of supervisors is key to the

success and the greatest need for behavior
change is usually there, not on the shop
floor.

PROCESS |

> Mobilization requires a clear implication

of management and putting in place
adequate resources so that the message
is understood right down to the shop floor.

> Progress has to be perceptible and

everyone has to share in the success.

TOOLS |

> Finding a clear method of showing the

importance that management attaches
to excellence and the investment that
management is prepared to make in order
to achieve it is key.

> An investment in training, to introduce the

new method of working.

ROOFING CASE PRESENTED BY:

Gil Mercier, director of performance and

technology (Roofing Division)

Eckhard Wywiol, production manager

Northern Germany KEY DIMENSIONS IN THE LEADERSHIP PROFILE
Driving for Results Leading Change