Most of the threads on this forum relate to account execs and what little value they add to the account.
Today rumour has it they announced 60% of the UK’s account execs are being made redundant.
Am I imagining this or did Lawrie says in his investor call that firing middle managers boosts morale for those below them?
US and UK people are being got rid of to be replaced by cheaper labour elsewhere in DXC.
That is what is happening can't you see it?
Its exactly what Mikey said to shareholders.
Not that our mainland European friends ever say much (I don't think there are many who read this) but I suspect that probably they aren't being axed because its much harder to WFR people in the far better protected employment of EU countries. Not to mention that in those countries the clients support their own countrymen and refuse to allow offshoring, they demand native resource.
I agree that Mikey probably doesn't have long left if he's not to get the boot, but I don't suppose it bothers him. He's already earnt hundreds of millions of dollars and the boot will gain him probably another 30 million. I suspect a no improvement on revenue Q3 will see him out of the door and I can't see how revenue in Q3 will be an improvement - its 12 weeks after the Q2 results and you don't turn that around in 12 weeks.... even if you are capable (which he absolutely isn't).
It just amazes me that its only now that shareholders have noticed the revenue slump. Its actually been like this, exactly the same, every year since Mikey rolled into CSC.
I thought those shareholders and analysts were supposed to be clever... I'm only a frikkin' IT guy and I can see that.
I don't see the point of making more people redundant. DXC were winning work and not having the people to do the work. I thought DXC was supposed to be in growth. If DXC are prepared to make more people redundant I believe they need to be prepared for a drop in revenue. I think we're seeing the effects of all this cost cutting now the share price is dropping at great speed.
I think the shareholders want to see revenue growth and maybe think all this cost cutting is now affecting DXC ability to take on more work.
I think we will see dramatic share price fall until either the company changes direction or the CEO/Chairman is replaced. I wouldn't be surprised to see the shareholders calling for a change leadership.
I don't see there being any improve at DXC until the leadership is changed and rather than cost cutting a leadership that is willing to invest in technology and it's workforce.
The entire Account Run lead job role is made redundant. Being replaced by under half the number of internal SDMs and external account managers. Over the last 5 years, Run Leads have taken all the load as the rest of delivery pulls-back on its activities through cut-backs. DXC heavy admin and process overheads then made the Run role largely an admin troubleshooter to keep the machine moving. Clearly a time and motion study has found this non-productive so the role goes. Not clear who will do all the admin and process work now like getting approvals to buy things, recruit staff, transfer money, etc.
Let's protest and don't work. This will make the management stress.
@1fhd agree with pretty mucha all you say - except "There are no winners." .... ML and his cronies
Glad to be out of it.
IT Out Sourcing is an accounting ruse - it doesnt work for the customer's business or the OS people at the coalface
The problem is not we have too much AE, the problem is most of them are not doing their job. They don't focus on customers, but on managing internal problems.
So, by the same logic, getting rid of Lawrie will boost the morale of the entire company!
I recall the strong execs from the aerospace days. Some on healthcare and one on RMG who practically ran the business. They had grown through the ranks. The current crop are....hmm.
The client meetings I sat in (different clients in UK and Europe) the execs seemed quiet as mice and couldn't answer client questions about 'who in DXC was going to do the work'. I knew the clients were fully aware of DXC's chaotic communication and would ask awkward questions just to see the exec squirm.
I've seen execs promise stuff they knew could not be delivered in the timescales they agreed, but felt they had to offer something. No, you didn't. its as if they think they will cross that bridge when they get to it. The one that's on fire with people jumping from it. It always made me cringe when they smile, shake the client's hands and then confide: "This is going to be tough" and a week later they've got a red risk on delivery and service guys trying to hide hours from the WBS to avoid blowing the budget that never was.
I suppose I could just sit here and say all the execs are useless, but I've known some capable execs who were forced out or put into impossible situations. Some left and some stayed on because they liked the customer but hated DXC. I know the execs who don't have a clue about the businesses they manage. You could argue that at a regional level they don't need to know the detail, as long as they have people that do. But some of them don't seem to know much about IT either!
But even the good ones are in a no-win situation. They get beat up on sales (trying to sell something they know the customer can't afford); beat up on cost (which seem to be going up despite the supposed automation and consolidation - what's going wrong here?) and then accept work to make a few fiscal KPI's only to lose it on recoveries. Offshore may look cheaper on the books, but the costs to fix everything afterwards blows the little recovery they were hoping to make and you can't shift a loss recovery to the next job (although they do) because that is likely to make less money than the local mini mart.
So you end up with more going out than is coming in. The leadership is missing. The communication is missing. The devolved responsibility is missing. The lean workflow we hear about is missing. The sales are missing and the joined up service is missing.
There are no winners. So in the meantime, everyone may as well attack everyone else as useless. Until there is no-one left.
Merry Christmas.
So that means Lawrie must be reading this forum?? Or someone from up top must be. I’d really like to know which management book says firing middle managers improves morale for those lower them. The caveat being grossly incompetent people middle managers. Or did they make up this strategy based on employee feedback on here?
Some ARL’s I’ve worked with can only be classified as grossly incompetent. Like they have absolutely no idea how their Line of Service functions. Though every now and then I come across one who is extremely good at their job. But that’s a rarity.
Broken processes, broken everything and instead they have at least 30-60 mins a day to stand and moan about how everything is rather than fix it.
And the 40% who remain will be getting the other 60's workload.
That guy you say you can never get hold of to get answers? He ain't answering now even if he did survive the m---acre.
Yes and yes