Growing Internationally and at home
As ADP continued to grow, new leaders were required to manage the organization. Frank Lautenberg found and hired Josh Weston, an executive at the J. Crew Company who oversaw the use of IBM 360 computer to process thousands of orders a day. Josh was a perfect fit for ADP’s growing focus on technology.
Josh Weston introduced the term “associates” for ADP employees, which is still used today.
In 1972, ADP enters another industry-specific market, offering computerized inventory and accounting services to auto dealers. This was the origin of the ADP Dealer Services business, which would grow to support over 26,000 dealerships in over 100 countries by 2014.
The opportunity was clearly there. It could grow into something big, it offered recurring revenue, and we had the chance to be number one in the industry if we deserved it.
In 1974, ADP extended its geographical reach across the Atlantic, when it acquired a small payroll service bureau in The Netherlands.
It was time for us to take our service to all markets in which we thought we could succeed.
In 1974, Henry Taub stepped down as CEO to pursue his philanthropic interests. He remained the Chairman of the Board of Directors.
In 1975, Frank Lautenberg commissioned a new logo for the company, one that projected a confident and more modern image. That same logo today marks ADP’s presence in markets around the world.
In 1977, when ADP acquired the payroll base of United California Bank (UCB), the deal carried a unique requirement. For ADP to close the deal, it had to take over an existing “payroll tax filing service” as part of the acquisition. The successful tax filing service used by virtually all payroll clients today had begun.
Nobody at ADP even knew what a tax filing service was. We figured we’d put it into a cocoon and that would be that. But somewhere along the line we figured out that this small tax service had possibilities.
In the final week of 1979, ADP acquired an automated claims estimating service owned by Itel Corporation that showed promise. It would become ADP’s fourth core business unit, Claims Services.
ADP signed papers for the new business at 8:30 in the evening on December 31st, 1979.