L'Oréal - 2018 Registration Document

3 L’Oréal’s corporate social, environmental and societal responsibility PERFOR MANCE INDICATORS AND RESULTS

Training at the service of the Group’s performance Training is central to the Company’s major transformations: the digital revolution and developments in managerial practices. For digital technology, the Digital Upskilling training programme is one of the pillars of the Group’s digital acceleration strategy. This programme, launched in 2015, began by communicating the Group’s digital ambition in the areas of e-commerce, marketing and love brands, in order to create a shared language. The programme is gradually evolving to support the development of new skills that are essential in order to develop new competitive advantages for the Group. The Digital Upskilling programme has been developing since the launch, with two major pillars:

consolidating the new skills necessary for the digital s transformation (e-commerce, advertising precision, analytics, etc.); integrating digital in all of the Group’s training plans. s It is systematically based on three teaching principles: contributing new knowledge in terms of vocabulary, best s practice, and academic content; connecting with the external world: immersion activities with s digital agencies, consumer interviews; practical application during work sessions: workshops that s allow action plans to be prepared in order to integrate digital technology into the different businesses lines.

Since 2015, the Digital Upskilling programme has involved more than 22,000 employees.

The Learning Operations team supports the digital transformation of Operations with a training offer known as Acculturation #Operations 4.0, which is aimed equally at: managers ( Digital Upskilling Learning Expedition in Paris, s New York and Shanghai, 200 managers “inspired” as of end-2018); project leaders with Fast Prototyping workshops; s employees with an #Operations 4.0 webseries on s MyLearning (nine episodes to date, 3,149 visits), a Digital Experience Toolbox for the everyday use of digital tools and a Digital Events Kit to help sites organise their local digital events, for all their employees. By the end of 2018, more than 2,700 people had been immersed in local digital events, notably at the Libramont, Saint Quentin, Rambouillet, Aulnay, Chimex, Burgos and Ville-Saint-Laurent plants in Canada, and at the headquarters of the Americas Operations zone in Clark. As regards change in managerial practices, the Group Simplicity project completed the second year of its rollout in 2018. It builds on deepening cooperation and trust, as well as agile and efficient teams. The ongoing will and implication of the Group for 2018 was both to extend this transformation and to engage all team managers via the program Team Leader as well as to support the leaders in the evolution of their practices. By the 31st of December 2018, 6,000 managers have joined the movement, created in 2017, by more than 3,300 leaders involved in this transformation.

To support change in managerial practices over the long term, the Group is active in several areas: a second wave of 360° feedback for the top 250 leaders is s underway, initiated by the members of the Executive Committee; a “Simplicity for All programme” to anchor these new s practices in the daily lives of all employees. Our Learning governance L’Oréal ensures the global consistency of its main programmes and their suitability for the needs of each geographic zone thanks to an international network of Learning managers. The local teams contribute to the preparation of new Learning offerings with a principle of co-development. These training programmes are essential to understanding the Group’s strategy and building a feeling of belonging by developing an internal international network. The training offer is developed by 18 “practice leaders”, whose role is to anticipate future skills requirements and build the appropriate training offer in the various areas of expertise (marketing, sales, research, operations, management, personal development, HR, finance, IT, etc.). Employees benefit from two annual individual interviews with their manager, one of them being dedicated to identifying development needs. Personal training paths are built on the basis of these discussions, with the help of the Learning managers. In addition, employees have access to a comprehensive set of development resources offering a mix of face-to-face training, training videos, and digital and social experiences, as well as coaching in the work situation. They can thus build their own training experience, while sharing their practices with colleagues all over the world. Finally, all the training actions include a system of assessment which makes it possible to measure the impact on performance and managerial skills.

REGISTRATION DOCUMENT / L'ORÉAL 2018

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