{ "docId": "019dd923-622c-750b-8b9b-d9b3dd5a51e8", "docSlug": "1c9c0f306991", "documentTitle": "Automatic Data Processing (ADP) (ADP)", "authorId": "01_Pershing_Square", "authorName": "William Ackman", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2017-08-17 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 125, "pageCount": 168, "prevPage": 124, "nextPage": 126, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses testimonial evidence to critique organizational design.", "elementsJson": [ "headline_text", "callout_box", "bullet_list", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9b-d9b3dd5a51e8/125", "deckHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8", "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8#slide-125", "components": [ { "bbox": null, "kind": "callout", "text": "ADP’s functional matrix reporting structure hampers execution, precludes transformational change, and promotes waste", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-ee39-730e-b023-0ae1adb3407c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.6, "w": 0.92, "x": 0.04, "y": 0.26 }, "kind": "list", "text": "The current structure: Prevents transformational change; Drives sub-optimal outcomes for the broader business", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cb5f7297-e7fb-4f5e-84db-c22142db5cdf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.88, "x": 0.08, "y": 0.68 }, "kind": "quote", "text": "Only three people [beyond Carlos] really looked across the entire business: head of IT, head of sales and the CFO. If doing your thing was bad for the overall business, but good for your business, that's what you'd do...", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "71ac2b49-3f9b-407a-b35a-ab8c97dbf30a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.88, "x": 0.08, "y": 0.37 }, "kind": "quote", "text": "There’s a structural problem that the people who are leading the company [the Business Unit President's] are designed to lead service and implementation as the primary focus with a matrix for other [functions].", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "df18c14a-dd11-43e0-8bef-ab82dcce9444", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“There’s a structural problem that the people who are leading the company [the Business Unit President’s] are designed to lead service and implementation as the primary focus with a matrix for other [functions]. The other leading SaaS companies, service and implementation are utilities. They can matrix in. It’s the exact opposite at ADP… If you only control service and support, you’ll try and improve margin with that. Show 100-200-300 bps and do it on the backs of people, throw some efficiency service tools. They are incapable of fundamentally transforming the customer experience from a service business to a SaaS experience, they don’t control the tools.” — Former DVP, Business Transformation; “Only three people [beyond Carlos] really looked across the entire business: head of IT, head of sales and the CFO. If doing your thing was bad for the overall business, but good for your business, that’s what you’d do because that’s what the incentives drove… I would integrate the service and implementations teams. [There is] an opportunity to restructure, get product complexity down. Look at the segmentation, figure out if this is right. Each BU has its own CFO, Finance, HR, etc. [It] creates a lot of internal waste. [ADP] should un-segment this business… There is so much replication.” — Former Senior Executive", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-ee39-730e-b023-0c1021e3fbb2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.04, "y": 0.97 }, "kind": "source-note", "text": "Source: Interviews with prior ADP executives.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9f99d8eb-0204-4a22-83b3-4e116d6b3e38", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.92, "x": 0.04, "y": 0.15 }, "kind": "title", "text": "ADP's functional matrix reporting structure hampers execution, precludes transformational change, and promotes waste", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b1dadeda-fa13-40c2-942f-69d59ee13f99", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.92, "x": 0.04, "y": 0.08 }, "kind": "title", "text": "ADP's Functional Matrix Structure is Sub-Optimal", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "acfc6e48-9d74-4c19-af4d-3af235110274", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "27f4396d-fe8c-40d4-93cf-8f26c395c8d5", "evidence": "Uses executive quotes to highlight structural flaws and contradictions in business strategy.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }