Deere Updates Operating Model

Deere & Company has introduced a new global operating model that will combine the technology, expertise, experience, channels, and investments of the Worldwide Agricultural Equipment Division and the Worldwide Commercial & Consumer Equipment Division into a single unit called the Worldwide Agriculture and Turf Division, effective May 1, 2009.

Through the new operating model, this combined organization will be positioned to achieve the alignment and efficiency necessary to develop a more complete portfolio to meet worldwide customer needs — while reducing overall costs.

The new division’s global operating model will leverage common processes, standards, and resources to develop solutions more quickly. It is designed to enable the division to grow profitably across many geographic markets, increase its competitiveness, and achieve and sustain exceptional operating performance — at all points in an economic cycle.

"The new operating approach has been in development since early 2008 — and is an extension of many of the successful efforts resulting from the implementation of the SVA model, in place since 2001," says Robert W. Lane, chairman and CEO. "Products and functions will be formally realigned to make us more responsive to customer needs and market conditions, and allow us to work smarter, more effectively, in all that we do. Customers, suppliers, and dealers will find it easier to work with John Deere because of reduced organizational complexity."

Effective May 1, 2009, the Agriculture and Turf Division unit will have two presidents: David C. Everitt, responsible for the tractor product and the turf and utility product platforms; and Markwart von Pentz, responsible for crop harvesting, hay and forage, and crop care product platforms. In addition, Everitt will have responsibility for sales and marketing in the regions that include U.S., Canada, Australia, New Zealand, China, Asia, India, and a portion of Africa. Von Pentz will have responsibility for sales and marketing for the rest of the globe including Europe, CIS, the Near and Middle East and Northern Africa, South America, Central America, and Mexico.

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