Ahold Retail Academy Albert Heijn Stop Shop caring company culture, empowerment (with clearly-defined responsibilities and accountability), selected levels of com pensation and benefits, and a healthy balance between work and a personal life. Ahold believes its ability to deliver attractive packages to associates forms the foundation of its employment brand image and ensures success in sourcing and retaining talented staff to manage its growing network. Management development Much progress was made in 1999 in making management development a more transparent process with local, regional and strong corporate involvement. Ahold has become a preferred employer in nearly all its markets. In 1999, Ahold's global management development program was well underway in the United States, Europe and Asia (and introduced in Latin America in 2000). It attracts the best, then develops and retains these key individuals. It is crucial to have the right person in the right place at all times. The global MD initiative assists corporate, regional and country management by keeping pools for key positions filled with talented people eager to grow and gain responsibility. It is interesting to note that newly-acquired companies and joint venture partners also appreciate the opportunities offered by Ahold's worldwide MD program, as it enhances job satisfaction and self-fulfillment. A key element of these programs, on and off the job, is supportive training. Ahold Networking Ahold has made considerable progress in developing an intranet knowledge network enabling thousands of key specialists around the company to discuss business issues to the benefit of both local operations and Ahold as a whole. The overriding objective of Ahold Networking is the sharing of knowledge and expertise to add value at all levels. Last year, the organizational instruments and technical applications were assem bled to assist these specialists to identify, capture and exchange these opportunities. The first 2,200 participating specialists have been trained and readied for the Ahold Networking initiative in the United States, Europe and Latin America (the Asian region will follow in 2001). Ahold Networking is carefully structured to connect operating companies and joint venture partners. It makes Ahold the first international food retailer to use state-of-the-art information technology to share best practices in key aspects of the business, online and for internal use only. Shared areas of expertise include: procurement, logistics and distribution; IT, business-to-business initiatives, e-commerce and the development of new sales channels; human resources and MD; marketing communications and publicity, loyalty and card-based marketing, private label, advertising, promotions, public relations, public affairs, consumer affairs and food safety issues; store format design and opera tions. This initiative is expected to add the equivalent of at least one per cent in sales to Ahold's operating earnings. The Ahold Retail Academy, started last year, has devel oped into an important vehicle to groom young, high- potential Ahold executives and give them a better insight into fundamental issues that determine the company's success. The Retail Academy runs a two- week course twice a year, structured by Ahold special ists in cooperation with Cornell University in the USA and Nyenrode University in The Netherlands. Participants have several years working experience at Ahold or its joint venture partners and are invited to follow the program as part of their individual career development plan. Senior executives, including Corporate Executive Board members, are among the lecturers. The course is designed to raise participants' knowledge levels, leadership and manageri al skills. Particular attention is paid to updating best practices in food retailing and developing strate gic thinking. Other objectives include fostering internal cohesion and encouraging the sharing of best practices in individual situations. Royal Ahold Annual Report 1999 35

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