Highest Official: Tom Dolan, President
Public Affairs Contact: David Galante, Manager, Worldwide Marketing Communications, (716) 383-9985
E-mail:david_galante@mc.xerox.com

Xerox Business Services provides document outsourcing services and consulting including on-site management of mailrooms and print shops and creation, production and management of documents.

With headquarters in Rochester, N.Y., XBS is a 14,000-person, $2 billion division of Xerox Corporation. Eighty percent of its employees are located at customer sites throughout the world. XBS has five regional offices located in Des Plaines, Ill.; Rochester and New York, N.Y.; Irving, Texas; and Denver, Colo. The company also has 14 Document Technology Centers, 38 field operations offices, more than 2,300 customer locations in the United States, and more than 2,000 customer accounts in 35 countries. (In 1989, Xerox Corporation's Business Products and Systems won a Baldrige Award in the manufacturing category.)

Quality and Business Performance Achievements:

• Xerox Business Services has experienced revenue growth of over 40 percent for the past two years, with an outlook for 1997 of approximately 47 percent. Growth is expected to continue at this level for the next several years. In less than five years XBS has grown into a $2 billion division with projections to reach $6 billion by 2000.

• XBS' U.S. market share position is increasing while its two leading competitors are experiencing flat or declining market share trends. XBS' market share for document outsourcing is approximately 40 percent, while its two main competitors combined are approximately 30 percent.

• Revenue per salesperson continues to rise from approximately $1.1 million in 1992 to $2.5 million in 1997. Also, revenue per XBS person has increased from approximately $78,000 in 1992 to $106,000 in 1996.

• XBS' current overall customer satisfaction rating of 95 percent exceeds its two main competitors. It is in a leadership position in seven of the 10 high motivators of customer satisfaction, identified by XBS using a third party survey. These motivators include total commitment to quality, improved productivity, and delivery on promises. XBS has experienced increased customer retention from approximately 88 percent in 1992 to approximately 95 percent at the end of 1996. To obtain as much customer satisfaction data as possible, XBS plants a tree in national forests for each customer completing the evaluation form. Reviews are conducted with customers monthly, promoting fast response to problems and changing customer needs. XBS uses a process called Managing for Results (MFR) which cascades action plans into challenging and aligned objectives for each manager, supervisor, and front-line associate. This is vital to XBS' success since 80 percent of their employees are spread out over several thousand sites around the United States and in other countries. Key performance measures are deployed to all teams and individuals throughout the organization. The MFR process enables individuals and teams to design work systems more rapidly and with greater flexibility.

• XBS puts heavy emphasis on benchmarking throughout its organization, gathering comparative information from companies that are large, small, tenured, new, inside or outside their industry. In addition to data from market research firms, XBS identifies companies with best practices by relying on its own employees and customers, as well as user groups, advisory boards, partnerships and joint ventures.

• When XBS joins with a client company to provide outsourcing services and business solutions, typically 85 percent of the previous workforce is retained. While assimilating this expanding workforce, overall XBS employee satisfaction continues to show growth from approximately a 63 percent favorable rating in 1993 to approximately 75 percent at the end of 1996. Key attributes impacting employee satisfaction are trust, responsible freedom, valuing people, learning and teamwork. In a rapidly growing business, job retention within XBS has increased to 92 percent in 1996.

• XBS offers several innovative assistance options to employees and their families. Life-Cycle Assistance gives employees a $10,000 account which can be used to fund special needs including adoption, elder care, and first home purchase. Unspent funds can be used to offset the employee's retirement medical expenses.