CDK Global reorganizes operations
HOFFMAN ESTATES - CDK Global announced a comprehensive streamlining of its organization that will enable it to improve customers' experience, create significant efficiencies, and better align the company to implement its transformation plan.
The new structure, effective July 1, will reorganize the company into two main operating groups: CDK North America and CDK International. The organizational changes also include integrating product management, combining digital marketing and automotive retail North America operations into a single organization, creating a single North America Sales organization, and forming a single global R&D organization. Concurrent with the reorganization, the Company also announced a number of leadership changes.
"These fundamental changes to our global structure and leadership team will create a flatter, faster, and more efficient organization that puts the customer first and increases our ability to offer interconnected products and solutions," said Brian MacDonald, chief executive officer at CDK Global. "CDK has essentially operated as three separate entities with an overly complex array of products, duplicate product development organizations, overlapping capabilities and inefficiencies. This hindered our ability to effectively develop and deliver solutions that take advantage of our broad capabilities.
"As we look to a future where customers want more integrated and innovative offerings like Connected Store, we need to change our structure to meet these needs," he added. "Our new simplified structure will help the organization move faster for customers and will bring product groups together for increased collaboration across our offerings to enable better product integration."
The savings that will be realized from the reorganization are included in the company's previously announced transformation plan targets of realizing a total of $250-275 million additional adjusted EBITDA dollars and achieving adjusted EBITDA margins of 35 percent in fiscal 2018. MacDonald added,