CAREER DEVELOPMENT

Career Development

Career Development

Abstract

The purpose of this report is to analyse critically interrelated international people management and development problems faced by LVMH conglomerate and to define alternative policy which should be suitable for the company's business goals. I would like to start this paper with describing the way how LVMH operate globally concentrating on functions of company's human resource department. This report is presented by the Corporate HQ HR Director as a Principal Consultant with Mc Strategy Consulting.Introduction

LVMH is the leading luxury brand conglomerate in the world. Based in Paris, it employed over 56,000 people in 2000, 63 per cent of whom are outside France. It has more than 1,400 stores worldwide and sales of ??12 billion (84 per cent outside France).

Since its creation in 1987, LVMH has sought to create a pool of global managers with a working knowledge of international markets. A global manager is defined as a person with the training or experience needed to manage a global business. He or she can perform from any place in the world thanks to a global vision and skills in managing multicultural and multilingual teams. To have such abilities, an individual must have worked in several countries so that his or her potential can be realised and noticed.

LVMH's performance appraisal system is not only based on results but also on the ability to propose and implement new ideas. LVMH has a career management process called organisational and management review (OMR). This annual process aims at reviewing HR objectives and results. The OMR is an essential tool for the organisation's HR planning, taking into consideration organisational needs for the next three years. It defines succession planning and high-potential and 'ready to move' lists. Employees identified on these lists are given development experiences, including international assignments, in order to prepare them for top management positions. The OMR particularly looks back on the previous year's objectives for high-potentials and those 'ready to move' and assesses their current development. LVMH manages to staff internally two in every three executive positions.

Designing International Management Development

A major component of an international management development approach is sending high-potentials on formal development programmes. The positioning and nature of these are, however, very different from the days when lucky high-potentials were sent to public courses at prestigious teaching institutions with little or no thought given to the applicability or transferability of the learning experience.

Bill Shedden, Director of Cranfield's School of Management's Centre for Customised Executive Development, summarises some of the trends and current challenges facing institutions providing executive development for international managers:

Trends in Executive Development

Executive development is now seen as an intrinsic part of developing an organisation's strategy as well as a potential source of competitive advantage. It results in both knowledge and capability gain for employees and people developed for the future health of the organisation.

No longer are companies willing to passively accept the design and delivery methods of the business school. They expect partnership in delivery, modular and multi-site programmes, with inter-modular projects and designated facilitators to integrate ...