D E S C R I B I N G T H E O B T O O L S O F A S U C C E S S F U L C O M P A N Y

L’Oreal Case :Managing the diversity

Presented by Romain Corraze

I / P R E S E N T A T I O N O F L ’ O R E A L

I I / M A N A G I N G T H E I N D I V I D U A L

I I I / M A N A G I N G T H E G R O U P

I V / F O C U S O N D I V E R S I T Y

V / S O M E C R I T I C S

V I / R E C O M M A N D A T I O N S

Summary

Presentation of L’Oreal

World leader of the cosmetic industry

Founded in 1909 by Eugène Schueller

Fist success on the Hair pigmentation market

3 researchers in 1920, More than 2900 in 2006

More than 51 000 employees all around the world

Turnover : 15,79 Billions euros in 2006, with a growth of 8,7% compared to 2005

Professionnal products Consumer products

Luxury products Active cosmetics

Key figures

P R O F E S S I O N N A L A N D P E R S O N N A L D E V E L O P M E N T

Managing the Individual

Career development and rewards

Employees stimulation

Employee training and education

Employee appraisal

Career development and rewards

« Focus on talents, and on the way they can be improved »

Employees helped in their career developments .

Encouraging mobility through transfer position promotions .

Rewards through pay rises, internal promotions or transfer positions .

Employees stimulation

Notion of Embracing Management and Integrative Management .

Geographical mobility is an opportunity for everyone .

High working cadency.

Fringes benefits .

Employee training and education

« 70 % on an employee global formation is going on everiday at work»

Training

People and talents

development

CorporateCulture

understanding

Supporting the implementation

of jobs and organizations

change

Employee training and education

Training sessions in rooms .

Bi-Annual development interview .

Management Development Centers

Employee appraisal

Annual appraisal through interviews .

Personal interview focused on evaluation, needs and professionnal aspirations .

«Defining expansion plan of individuals within the company»

Manage with

generosity

Ability to develop job sensibility

Ability to undertake

Ability to innovate

Ability to get results

To deal with

complexity

Interactwith

efficiency

Management competencies (L’Oreal competency scale)

Managing the Group

Internal communication

External communication & Brand image

Managing customers with care

Resolving internal conflicts

Managing the diversity

Internal communication

IC is well organized and used in an hierarchically way .

Daily information emails (News, Benchmark, Market analysis,…) .

Email used as a critical way of communication between teams, top

management and direction .

External communication & Brand image

External communication is taking place through promotions, Public relation,

Press and Interactive communication .

Activities : Events, Sponsoring, Proposals for international

marketing campaigns, Buzz,…(ex : Biotherm’s Self tanning lotion)

Importance of a luxury brand image .

Activities : Sponsoring, Events

Managing customers with care

A strong customer-responsive culture .

Creation of special clubs (VIP Club, Privilege Club) .

Resolving internal conflicts

HumanRessources

Director

EmployeeY

EmployeeX

Human Ressources

Director

EmployeeY

EmployeeX

Conflict Resolving Conflict

F O C U S I N G O N E T H I C A N D C U L T U R E A T L ’ O R E A L

Managing diversity

A strong culture

Ethical principles

Reflecting diversity

Diversity is a priority (extract from L’Oreal website)

A strong culture

Embracing Culture and Short Hierarchy procedures .

Presence of a voluntary confusing structure to promote autonomy and

collaboration .

A supple company : a oral communication rather than « written procedures » .

Diversity is a core value of l’Oreal .

Ethical principles

Law respect

Individual respect

Consumer respect

Environement respect

Partnerships with customers & suppliers

Loyalty & integrity

«Show to employees partners that l’Oreal is honoured and honourable»

Reflecting diversity

Reflect in its team and at every level, the diversity of its clients .

Promote the access of women to high responsability position and a better equity

Promote work for disabled people .

« Diversity and Performance » Chair at ESSEC Business School .

« Diversify profiles will bring new perspectives »

« Focus on a managerial culture which fosters the inclusion of all

employees and capitalise team diversity »

« We are dedicated to understanding and serving that diversify

effectively with products attuned to each culture, each need »

Reflecting diversity

Reflecting diversity

2004 : The Diversity Best Practices Leadership Award .

2005 : The Anti-Defamation League’s International Leadership Award .

2004 : The World Diversity Leadership Council’s Diversity Innovation Award .

2007 : Ethnisphere Magazine ranked l’Oreal as one of the « World’s most ethical

companies » .

But finally…Diversity ? A recent integration in l’Oreal’s strategic management ?

Some critics

Contrast with the value of autonomy argued by l’Oreal

Work in emergency : a real strategy or a lack of performance ?

Pressure on employees

Recommandations

Releasing stress BUT with care

Simplifying validation process

Listening employees

Thank you for your attention