Summary
Accenture plc (ACN) announced significant organizational changes via an 8-K filing on January 13, 2020, effective March 1, 2020. These changes are designed to simplify the company's structure and better align with its growth strategy. The primary impact for investors is the shift in reporting segments from five operational groups to three geographic markets: North America, Europe, and Growth Markets. This new structure will be adopted starting in the third quarter of fiscal year 2020. While the reporting segments are changing, Accenture will continue to provide revenue disclosures by the former operating groups and by type of work (consulting and outsourcing), as well as supplemental information on digital, cloud, and security services. The company also highlighted leadership changes within its Global Management Committee, aligning with the new operational framework. These adjustments aim to enhance Accenture's ability to capture market opportunities and drive innovation across its service lines.
Key Highlights
- 1Accenture is restructuring its reporting segments from five operating groups to three geographic markets (North America, Europe, Growth Markets) effective March 1, 2020.
- 2The new segment structure will be adopted for reporting starting in the third quarter of fiscal year 2020.
- 3Organizational capabilities will be consolidated into four services: Strategy & Consulting, Interactive, Technology, and Operations.
- 4Leadership changes within the Global Management Committee are effective March 1, 2020, to support the new structure.
- 5Accenture will continue to disclose revenues by former operating groups and by type of work (consulting and outsourcing).
- 6Supplemental information regarding digital, cloud, and security services will continue to be provided.
- 7The changes are intended to align with Accenture's growth model and enhance market responsiveness.