ADP's objectives are sustained growth in shareholder value
through ever-improving financial results, World Class Service,
and being an employer of choice. We will achieve these objectives by having a total commitment
to the highest ethical standards, by treating everyone
with honesty, fairness and respect, and by conducting our
business with the highest level of integrity. We believe
in open, informal communications, hard work, and prudent
financial management. These are ADP's core values, the
foundation on which our business culture is based.
But a statement of values is not enough. Unless our values
are consistently practiced, they become just platitudes.
Consistent implementation occurs only when each of us respects
the rights of others, when our actions are free from discrimination,
and when each associate is accorded full equal opportunity.
As we continue to grow and as our businesses become increasingly
complex, a shared, well-communicated Corporate Philosophy
is more important than ever. We are not perfect. Our actions
will occasionally fall short of our aspirations. Such shortcomings
should be viewed as an opportunity to learn and to refocus
our efforts to live up to our values and Corporate Philosophy.
Arthur F. Weinbach
Chief Executive Officer
Our Mission is to add value to our
clients by making available a broad range of mission-critical,
cost-effective computerized transaction processing and
information services to selected markets on a global basis.
1. ADP's business is based on the belief that: Each client and prospect counts; each person counts;
each deed counts; and each contact between a client or
a prospect and an associate counts. Each client and prospect
is either prospective future business or a prospective
loss. . . depending upon the quality of our products, services
2. Outstanding Associates are the key to our success.
We are committed to attracting, motivating, empowering
and retaining a team of exceptionally dedicated, talented
associates who have a strong work ethic and results-orientation,
who believe in and support our core values, and who reflect
the diverse business environments in which we operate.
We will offer our associates challenges, opportunities,
advancement, competitive compensation and benefits, and
personal training and development in an informal, fast-paced,
non-bureaucratic environment that is sensitive to work-family
and flexible schedule issues. We will provide technologies
that enable our associates to continually meet our clients'
ever-changing product needs and preferences. We want each
associate to feel like an integral part of a team that
is making a discernible positive contribution to ADP's
success. Our goal is to become the clear employer of choice for our current and future associates.
3. We are committed to achieving World Class Service levels that exceed our clients' requirements and expectations by
providing solutions that enable them to succeed in their
businesses. We define service broadly, from initial contact
with a prospect, to product quality, to anticipating client needs and preferences, to overall client satisfaction. It
requires associates to treat every interaction with a client
as an opportunity to enhance that client's perception of
ADP. We are committed to investing in state-of-the-art
technologies to develop, deliver and support our products
and services, and advance our World Class Service vision.
We see World Class Service as a journey where, whenever
we approach an identified destination, we increase our
objectives and raise our goals in order to become even
4. ADP seeks to achieve
and maintain market-share leadership, primarily through
internal growth of its core businesses. Internal growth
will come from further penetration of our existing markets,
extending our market opportunities through broader product
offerings, increasing our client retention rates, and
continuing our international expansion. Acquisitions
and alliances will supplement our internal growth. We
will continue to look for entry into new markets that
capitalize on and leverage "Our Special Strengths."
5. Success is measured by increasing numbers of extremely
satisfied clients, higher client retention rates, broader
client relationships, increased market share, higher associate
retention rates, and consistent implementation of our values
and Corporate Philosophy, resulting in ever-increasing revenues,
earnings and shareholder value.
6. The Marketplace (clients, prospects and competition)
is the ultimate judge of performance. We want to be the
market leader (in terms of quality, service, size and earnings)
in each market we serve.
7. Our Shareholders expect and deserve growing profits
and returns from their investments in ADP. We are proud
of our record of consistent earnings growth. We seek to
maintain this consistent growth without sacrificing our
other important principles.
Our Special Strengths
We have a number of strengths which we capitalize on and leverage to aid our growth, including:
- being in computerized transaction processing and information services businesses, which are growth industries;
- a leading market-share position in each of our core businesses;
- a powerful financial position from which to compete;
- solid, time-tested "Operating Principles";
- a strong client service orientation;
- a superb direct sales capability;
- robust, powerful and well-controlled operations, production and communications capabilities;
- a strong desire and commitment to be a World Class Service company and an employer of choice; and
- a clearly articulated set of core values and Corporate Philosophy.
Our most critical special strength,
the key element in our success, is our worldwide team of
associates. They share "Our Vision" and help us succeed in
An Important Challenge
business team needs to respond to constantly changing client
needs, and changes dictated by the marketplace. Past successes
do not ensure a successful future. Nothing can be taken
for granted. Complacency is a powerful enemy. We must continuously
anticipate, and adapt to, changing conditions. We must
seize and exploit new market opportunities, and aggressively
and consistently seek to implement "Our Vision" 100%
of the time.
Our core values are the foundation for
all our activities. Our ever-evolving culture is guided
by our core values, by motivated, results-oriented associates,
and by our desire to be a World Class Service company and
an employer of choice.
We must nurture a culture of ideas,
questions, challenges, feedback and prudent risk-taking
without the fear of occasional failure.
Learning must become a continuing process.
We want on-the-job development of each associate supplemented
with suitable training. We recognize the benefits of cross-training
to provide additional perspectives and skills. It is important
for each associate to participate in self-development and
aid in the development of others.
We must maintain an environment for
top performers to progress as rapidly as they effectively
can. We are a meritocracy where advancement is based on
ability. We try to fill most new career opportunities by
internal promotion, while also supplementing our environment
with external hires.
knowledgeable, "hands-in" management
is a desirable style. Each manager should regularly spend
time talking to and visiting clients, prospects and other
associates to get first-hand insights from them.
To encourage an open, informal flow
of communications, we support an apolitical, candid environment
that quickly responds to constructive input. We encourage
lateral and vertical communications, both inside and outside
of formal reporting relationships. We support an environment
where constructive differences of opinion are encouraged
and welcome. And in the end, after differing viewpoints
have been clearly registered in interactive discussion,
we also recognize the need for final decisions with effective
communication and implementation.
We ask each associate for more than a
usual amount of conscientiousness and flexibility, because
World Class Service to our clients requires us to accommodate
client needs and schedules. We must always do what it takes
to suit client convenience because ADP is a critical information
lifeline to most of our clients. While doing so, we should
also try to minimize avoidable inconveniences to our associates
and their families.
Associates are expected to respect the
rights of fellow associates and others. Our actions must
be free from all forms of discrimination, libel, slander
or harassment. We are committed to offering each person
equal opportunity regardless of age, race, sex, sexual
orientation, color, creed, religion, national origin, marital
or veteran's status, handicap or disability.
We treat business ethics no differently
than personal ethics. The same high standard applies to
both. Our commitment to the highest ethical standards is
supported by effective enforcement mechanisms, including
a company-wide ethics program and an ethics hotline. These
ethical standards are more fully articulated in our Code
of Corporate Responsibility.
Associates - ADP's Success Is Due To You
We thank each of you for your talent, dedication and efforts,
and for the superior results that you have helped ADP
achieve. Your efforts and contributions make ADP what it
is today and what it will become in the future. It is your
continued dedication that will ensure our success.
We have come a long way since ADP was founded in 1949.
Each step has been exciting, rewarding, challenging, and
a learning experience that we have collectively inherited.
It is our goal to continue this exceptional journey to
becoming a World Class Service company and an employer
of choice, taking pride in our excellent products and services
and in the exemplary character of our associates.
As a supplement to our Corporate
Philosophy, we have evolved a number of operating principles.
While they are not cast in stone, we feel that the following
principles are critical to our ongoing success:
1. PLANNING GROWTH
Strategic Directions: We are singularly
interested in products and marketplaces of substantial
potential, where we can be an ever-growing leader and
industry standard by offering superior solutions and
providing World Class Service. We prefer markets where
our solutions have significant value-added uses to
clients (not mere commodity-like offerings), or where
we are well-equipped to outshine competitors so that
our success cannot be easily emulated. We most favor
directions where we have the greatest chance of becoming
the market leader, because a casual or small participant
can seldom maintain an adequate return on managerial
and financial resources.
Innovation — Selectivity and Focus: New ideas and products
are exciting. We need a continuing array of new ideas, and must recognize
and reward the associates who produce them. At the same time, it takes focus
and self-restraint to maintain the discipline of thinking and researching
very broadly, while implementing more narrowly. Many organizations tend to
pursue more projects than they can effectively handle. We must balance reward
and distraction. Nonetheless, we will try more new directions than we need
in order to leave room for the inevitable disappointments. And since major
new projects or directions are especially difficult and uncertain, we must
focus our best associates on these newer opportunities, as full-time champions.
Unless regularly challenged, many organizations tend to allocate resources
by inertia and tradition rather than by priorities and results. Resource optimization
requires sunsetting lower priority projects to make room for more promising
Business Plans: Good plans help maintain consistent
growth with fewer surprises. The specific objectives, priorities, strategies
and processes in a plan should be initially guided by senior management,
and then be directly created in more detail by each manager who must ultimately
own responsibility for the results. The planning processes should be interactive
and responsive to differing views.
2. PRODUCT MARKETING AND DEVELOPMENT
Continual, high quality, rapid development of new products, internal systems
and new technologies is central to maintaining and enhancing our competitiveness.
We must create marketing and development environments that induce greater effectiveness
and faster time-to-market. We must focus our energies on staying in tune with
unmet client needs and proactively addressing them. We must explore the latest
innovations so that we continue to be the market leader in all of our businesses.
We seek acquisitions and alliances to supplement our internal growth whenever
we can effectively telescope time and/or reduce risk in the pursuit of new
markets, products, clients and technologies.
3. ORGANIZATION STRUCTURE
In our business environment, the best people, best decisions, best attitudes
and best efficiencies are usually attained through substantial delegation,
empowerment and self-sufficiency. We encourage operational decentralization
to the fullest practical degree consistent with World Class Service, efficiency,
and highly automated, standardized systems. While each business unit has the
obligation to inform Corporate headquarters of important issues, decisions
and problems, each business unit is responsible for making all day-to-day operational
and client decisions, consistent with corporate guidelines. Corporate headquarters
has the responsibility to be aware of all significant events.
We recognize that certain policies and functions should clearly remain centralized
to varying degrees, depending upon the need for uniformity or specialized knowledge.
Regardless of location, all functions must cooperate and work together to achieve
our common goals. Excess layers of management increase costs and retard communication
and responsiveness. We aim to keep working units lean, small and cohesive enough
to empower associates and to give them a clear sense of their mission, their
accomplishments and their accountability.
4. RISK MANAGEMENT
Risk vs. Reward: We want to pursue substantial, continuing,
long-term revenue growth while preserving, to the fullest degree reasonable,
ADP's record of consistent earnings growth. This earnings consistency is
worth protecting because it enhances our financial standing and predictability,
and is an important component of shareholder value.
Evolution vs. Revolution: In ADP's businesses, most
improvement is best attained in manageable increments by evolutionary changes,
to ensure continued World Class Service to clients as change is implemented.
Conversely, big successes in new directions, or urgent quantum gains with
existing clients, will occasionally necessitate revolutionary strategic leaps.
We favor the incremental approach where large numbers of decentralized activities
and clients are involved, but only to a degree that does not unduly sacrifice
our competitive position. We must continually challenge our activities and
methods so that we aggressively upgrade our technologies, products, services
and processes, and minimize the need for a catch-up revolution.
Role Before We Roll: Since many new ventures will fail,
we will generally try to minimize the cost of failure to a manageable level
by not acting on an unnecessarily large scale too soon. Changes that involve
many clients and associates are particularly difficult and error-prone. As
we change processes and automate labor, we must minimize the risk of a poor
transition. We should role-model new products and approaches before we roll
them to many locations, clients or associates, without forfeiting windows
of opportunity that require fast time-to-market.
Accounting Principles/Financial Controls: ADP accounting
should always be conservative. Financial statements are much more management
tools than accounting documents. They require considerable effort to be accurate,
timely and concise, with clear displays of trends and comparisons that help
managers understand, control and manage the risks and opportunities surrounding
5. SPECIAL OUTSIDE RELATIONSHIPS
Business Friends: Many prospects and clients are introduced
to ADP by third-party recommendations from accountants, trade associations,
franchisers and bankers. We must maintain effective and proactive communications
and relations with these business friends.
Suppliers: Suppliers who are good business partners
are critical to our success. We expect suppliers to earn our continuing relationship,
as we must with our clients. We expect the best service and prices that a
supplier is offering to any equivalent customer. We, in turn, will fulfill
our obligations promptly and deal in a forthright, open manner. We should
always have back-up sources.
Community: We appreciate the good fortune that our society
has made possible, and acknowledge our appreciation by supporting worthy
sectors of our society with both effort and money. Our pro bono activities
encompass financial support (through the ADP Foundation), contributions in
kind and governance. Our primary areas of philanthropy and leadership are
education, health, the arts and social welfare.