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NEW XEROX STRUCTURE AIMED AT FASTER CUSTOMER RESPONSE & IMPROVEMENT IN PRODUCTIVITY; DOCUMENT PROCESSING OPERATIONS REALIGNED

 NEW XEROX STRUCTURE AIMED AT FASTER CUSTOMER RESPONSE & IMPROVEMENT
 IN PRODUCTIVITY; DOCUMENT PROCESSING OPERATIONS REALIGNED
 STAMFORD, Conn., Feb. 4 /PRNewswire/ -- Significant changes in the way Xerox Corporation (NYSE: XRX) will manage its document processing business and structure its organization were announced today by the company.
 The moves are being made to enable Xerox to provide faster response to customers and markets, to push responsibility and accountability further down in the organization and to permit employees to exercise greater individual entrepreneurial skills, said Paul A. Allaire, Xerox chairman and chief executive officer.
 The actions are the next phase in the Xerox on-going objective "to be even more responsive to customer needs while becoming the most productive company in our industry," Allaire said.
 "The changes will be more in how we do things than in what we do," he said. "Our strategic intent remains to be The Document Company providing products and services which enhance business productivity. Our commitment to quality and customer satisfaction remains paramount."
 In the new Xerox structure, three geographically designated customer operations units will focus on the delivery of products and services and ensuring customer satisfaction.
 Nine document processing business divisions have been established, each with worldwide, end-to-end responsibilities for a set of Xerox offerings targeted at a particular set of market needs. Each unit will have its own president and profit accountability.
 "To preserve the advantages of the company's size and scope, a set of corporate strategic services has been created to support the business divisions, particularly in manufacturing, logistics and technology," Allaire said.
 He said that "shifting from a functional, staff-oriented organization to a more streamlined, flatter, line-oriented organization will enable us to operate more efficiently with more people dealing directly with customers and fewer in indirect, or supporting roles.
 "I fully expect that over time our indirect head count will decrease as we become more focused and productive, even as we grow the business and add direct employees."
 The three customer operations units and nine business divisions will report to a newly formed corporate office, which will be responsible for the leadership of the corporation. It will consist of the chairman, three operations executives and the heads of corporate research and technology and corporate strategic services.
 The corporate office will be supported by a small corporate staff. In general, operating decisions will not come to the corporate office.
 "It would be a mistake to think about this new approach merely in terms of organizational structure," Allaire said. "As much or more important is how we will operate and work together.
 "How we manage will be shaped by three factors," said Allaire. "One is the organizational hardware, the structures, systems, processes and rewards we will put in place. A second critical element is people, the types of individuals put in key roles who will have major impact on our ability to succeed.
 "A third element, and perhaps the most important in the long term, is how we actually work together and behave on a day-by-day basis."
 Allaire said that the foundation for the success of the new Xerox organization and management approach "will be a deep commitment to creating a new value for and with our customers and leveraging all our resources -- capital, technology and especially people -- so that the total Xerox is always more than the sum of its parts.
 "We are working to put together an enterprise that continues to build on our values and our basic business principles -- one that provides us a platform for competitive success and growth in the 1990s and, therefore, improved shareholder value," he said.
 -0- 2/4/92
 /CONTACT: Thomas C. Abbott of Xerox, 203-968-3378/
 (XRX) CO: Xerox Corporation ST: Connecticut IN: CPR SU:


JT -- NY003 -- 6569 02/04/92 10:02 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Feb 4, 1992
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