ConAgra Foods realigns organizational structure to simplify business processes, increase accountability

ConAgra Foods Inc., one of North America's leading packaged food companies, today announced changes to its corporate and business operating structures to realign and clarify accountability. The changes are effective immediately.

"The changes improve accountability and reduce complexity in our management structure," said Gary Rodkin, ConAgra Foods president and chief executive officer. "Aligning our managers directly with our key priorities will result in better execution and effectiveness."

Business Organizations

Among the key organizational changes is a realignment of ConAgra Foods from three operating channels to two, with the previous ConAgra Foodservice being merged with ConAgra Food Ingredients to form ConAgra Foods Commercial. This new organization will be led by Greg Heckman, formerly president, ConAgra Food Ingredients.

"There are compelling advantages to combining these operations. It allows us to leverage the strengths of each business, while simplifying our structure," said Rodkin.

The Retail business going forward will be led by Dean Hollis, previously executive vice president of Retail. The sales organization, which previously reported into the head of Retail, will be led by Doug Knudsen and will report directly to CEO Gary Rodkin, as will a chief marketing officer (CMO) to be announced later. With the selection of a best-in-class brand builder as CMO, Rodkin looks to energize ConAgra Foods' marketing for high-priority brands, and drive both growth and innovation.

"Marketing and sales are at the heart of our business. I want direct oversight of these functions to make sure we maximize our impact with both customers and consumers. Improving execution in sales and marketing is essential to our success," said Rodkin.

Corporate and Shared Services Organizations

"Just as changes are being made in our business operations, we are realigning some of our corporate and shared services units to better support the business, as well as to drive accountability, simplification and collaboration. By centralizing functional areas, we free up the business units to focus on execution and improving performance," said Rodkin.

"Essential to this approach is defining functional excellence and developing best practices in the functions to be implemented quickly across the enterprise," he said.

Among the more significant changes in this regard is the realignment of all supply chain organizations under Jim Hardy, previously senior vice president, Manufacturing, who is promoted to executive vice president, Manufacturing and Supply Chain. He will have responsibility for manufacturing, warehousing, logistics, purchasing and customer service.

"This will allow us to reduce handoffs and drive productivity, thereby improving efficiency and effectiveness across the entire supply chain," said Rodkin.

Additionally information technology and responsibility for the company's SAP-designed business process transformation project, called "Project Nucleus," will be realigned into the Finance organization under Executive Vice President and Chief Financial Officer Frank Sklarsky.

"Project Nucleus is fundamentally about giving us quick, reliable access to financial and business information and to some cutting edge analytical tools and business processes. Nucleus is a high priority," said Rodkin.

Other functional disciplines from human resources to research and development will be more centralized as well to ensure greater collaboration, coordination and communication throughout the business, and to more quickly establish best practices in these essential disciplines.

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