Ahold is differentiated by its workforce and the way its people work together. The Company is structured to effectively execute strategy, balancing local, continental and global decision-making. The structure is also designed to enable a strong management focus on, and accountability for, the execution of its plans.
1. Two continentally based organizations
To improve customer-focus and drive company-wide initiatives across all of its banners, Ahold has reorganized its former arena structure into two continental platforms, based in the United States and Europe. Each continental platform is overseen by a Chief Operating Officer. They are responsible for the direct oversight of local banners and also for identifying and implementing synergies among its businesses. In addition, the European COO has company-wide oversight of retail marketing strategies. Continental teams are responsible for the oversight of local operating companies, as well as for the implementation of company-wide growth initiatives.
2. Reduction of Corporate Center costs by 50%
Ahold has streamlined its Corporate Center, and is ahead of its target to reduce core costs by 50 percent by the end of 2008. The savings to date have been achieved by staff reductions and substantial cuts in discretionary spend. The core costs in 2007 were €106 million, compared to €189 million in 2005. The core responsibilities of the Corporate Center include Corporate Finance, Corporate Strategy, Internal Audit, Legal, Human Resources, Information Technology, and Communications.