RISORSE UMANEORGANIZZAZIONE RETE

2

NORTH AMERICA & CANADA 59%

(+5%)

EUROPE15,5%(+9%)

CENTRAL & LATIN AMERICA

7%(+64,5%)

AFRICA & MIDDLE EAST

1%(+10%)

PACIFIC7%

(-19%)

ASIA10,5%(+35%)

- Group Headcount *-

61.903 60.975 60.767 61.979 64.050

69.216

Complexity at Luxottica: the Global Scope

3

Governing the complexity: 3 Drivers, 3 Layers of accountability, 200+ key positions……1 Leadership mindset

The Way W

e Lead

The Way W

e LeadThe Way We Lead

Global

Regional

Local

Global

Local

Regional

X # Luxottica 8+ Positions

Business76

Geography6

Function126

1

5

57

44

25

14

32

30

4

Governing the complexity: the crucial Role of Functions

F

B G

F

B G

B G

F

Business and

Geography

Function

Leadership

• Continue sustaining the global expansion of our retail business with local, regional and company-wide dedicated organizations

• Keep on setting up local and regional systems of integration to reach Luxottica full potential as ‘One Company’, multi-business and boundary-less organization

• Create a formal network of leaders, accountable for leading the functional community

• Develop common language, tools and KPIs (key processes)• Set up global, regional & local Shared Services• Manage a ‘One Function’ portfolio of key projects

• Architects of our G-local organization• Ambassadors of Luxottica characteristics• Sensitive to cultural differences• With enormous energy and ability to energize others

5

Managing a cross-border function at Luxottica

Model Description Sample Mechanisms

Central decision making and execution

• Single central unit or function, which sets Policy, makes decisions and executes them

CENTRALIZED STRUCTURE

• Specialized management roles• Common improvement process

CENTRALIZED DECISION MAKING, LOCAL EXECUTION

Decision made or policies defined centrally but executed locally(e.g., within country organizations)

ALIGNED EXECUTION Decision making primarily in local region / country organizations, but some centrally driven coordination to ensure alignment and optimization; local execution

• Formal network of functional leaders and talents

• Talent managed globally• Global processing centres or

centres of excellence• Regional shared services• Best-practice sharing• Common tools, calendar &

reporting formats for vital few key processes / projects

• Metrics & Reporting integrated globally

• Strong local accountability and general management

DECENTRALIZED Decision and execution fully local in each country

6

EUROPE93NORTH AMERICA

174

CENTRAL & LATIN AMERICA

22

AFRICA & MIDDLE EAST

5

- Group Headcount -

PACIFIC44

ASIA67

Headcount to HRRatio

1:184 1:153 1:167 1:151 1:172

HUMAN RESOURCES ACROSS THE GLOBE = 405

Human Resources

7

Knowledge Based Organization

– Formal Organization – – Networked Organization –

Marketing

Sales – Region 3

Sales – Region 2

Sales – Region 4

Sales – Region 5

Sales – Region 1

HR

General Manager

ITPlanning & Control

Sales

8

Knowledge Based HR Organization

Communities of practice:• Talent Acquisition• Performance Management• Compensation and Int’l Mobility• Talent Development• Recognition & Communication

POTENTIALLoose network of

peoplewho see value in

sharing and learning together

COALESCELoose network

launchesa community

COOPERATIONCommunity has

established common mindset, goals, strategies

and start brokering capabilities and

resources across the organization

2012

2013+

2011

KNOWLEDGE COMMUNITY

Members leverage one another’s proprietary knowledge to deliver

superior results

Functions / Processes

GeographyBusiness

Global

Regional

Local

RESULTS RESULTS

FUNCTIONALATTRIBUTES

2011 2012 2013RESULTS

By 2013 we will act as a knowledge community

9

All

Rel

atio

ns*

– O

rgan

izat

ion

– K

ey P

eopl

e

9

Organization Internal Density

G-Corporate 7.73

G-GMO 9.43

G-Oakley & Oliver Peoples 8.08

G-Operations China 7.91

G-Operations Italy 9.45

G-Retail Optical Australia & SEA 8.34

G-Retail Optical Greater China 7.79

G-Retail Optical North America 8.90

G-Retail Sun & Luxury 6.76

G-Wholesale 3.12

G-Wholesale & Retail 1.56

Corporate

GMO

Oakley & Oliver Peoples

Operations China

Operations Italy

Retail Optical Australia & SEA

Retail Optical Greater China

Retail Optical North America

Retail Sun & Luxury

Wholesale

Wholesale & Retail

MGR

• On this overall map, the sub-organizations appear as defined networks (see colors) and are positioned around the Corporate Group.

• There some relevant nodes well positioned within their sub-organization with a clear role of broker. These are fundamental for the existence of the network (blue arrows)

* The map presents the entire network by nodes(Problem Solving + Energy + Know-how + Bridge)

10

HR: Dimension 1 / Problem Solving

11

HR: Dimension 2 / Problem Know-how

12

HR: Dimension 3 / Energy

13

HR: Dimension 4 / Bridge

14

HR – Portfolio of competency and aspirations

My contribution is on

I’m skilled on

• In the first part of the survey were asked three questions to detect garrison(CONTRIBUTION) competence (SKILLS) and preference (LIKE) against practices / processes within the HR group Luxottica.

• The questions asked to put in order of importance the first three practices as in the example aside

EXAMPLE

Cluster HR Practices

Comp & International Mobility

Compensation & Benefits

Performance Management

International Mobility

Governance & Board Relations

Payroll and Personnel Administration

Payroll and Personnel Administration

Diversity & Culture Management Diversity & Culture Management

HR Business Partnership HR Business Partnership (Generalist)

Internal Communication Internal Communication

M&A, Organization & Change

Change Management

Organizational Design

Merger & Acquisitions

Planning, Reporting & HRIS

Payroll and Personnel Administration

Reporting & Analysis

Manpower Planning, Budgeting & Forecasting

HRIS

Talent Acquisition & Development

Learning & Development

Talent Acquisition (Recruiting)

Coaching & Feedback Management

Talent Management

Employer Branding

Vendor Management Vendor Management

Welfare, Employee & Union Relations

Employment & Labor Law

Industrial Relations

Welfare Management

Contribution_01 HR Business Partnership (Generalist)Contribution_02 Coaching & Feedback ManagementContribution_03 Manpower Planning, Budgeting & Forecasting

Skilled_01 HR Business Partnership (Generalist)Skilled_02 Coaching & Feedback ManagementSkilled_03 Change Management

Like_01 HR Business Partnership (Generalist)Like_02 Employer BrandingLike_03 Organizational Design

15

Practices preferences

1.The sum of all the answers to three questions about the practices emphasized the significance of Talent Acquisition & Development cluster.

2. M & A, Organization & Change has collected a large number of preferences (like) compare to the contribution and the skills

PREFERENCE BY VOTE

1

2

HR Community Level 1 - Nomination in

• The graph shows the nomination distribution received by HR Leaders within their peers group

Mr. Green

Mr. Red

Mr. Blue

Mr. Yellow

Mr. White

Mr. Pink

Mr. Orange

What it’s used for?

AREA PURPOSE

Organizational redesign (inclusive of M&A)

Ability to identify key brokers, ‘movers’ and ‘shakers’ who can drive change

Process Improvement Practice-based processes’ analysis focusing on knowledge flows integral to core process areas

Partnership/Alliances Effectiveness of partnership / alliance in terms of knowledge and information flow, knowledge transfer and decision making

Succession planning Reveal “true experts” and identify among them who everyone has in his personal network and where there might be gaps in case of retirement or transfer

Formative Needs Analysis Ensuring that the right people / capability mix is utilized to execute strategic intent

Stakeholder Analysis Ability to identify key brokers, promoters and potential gatekeepers and see the way they related to each other

Decision Making Process Connectivity of Executive Team and reveal how information enters and leaves the team

Communication Visualize people real connection and interacting way

Innovation chain Reveal how collaboration is currently happening and show potential gaps or suspected gatekeepers.