McKinsey have been all over DXC Technology - 60% fall in share price over 12 months (now flat) must indicate they weren't working for the sharegholds, it is shame senior manager aren't up to the job.
CEO gets bonus / while McKinsey gets a kings ransom! (no case studies here!)
BBC Radio 4 https://www.bbc.co.uk/programmes/m0007wvg
8 replies (most recent on top)
I have worked here for over two decades. The 'management' have always embraced utter Bowlocks and sh1t such as six sigma, their own cr@p called Catalyst and now DevOps, Agile and the utter worst of all 'Digital'. Who knows what a Digital Transformation is? Maybe it is what we have all been doing for the past 60 or so years. My department have been providing our service since the 80's and we are proud of our product and have many happy clients. But like everyone else her we despair and are very scared of what will befall us.
Swap Six Sigma for any of the other buzzwords and it's a perfect match for DXC. Spartan's anyone??
https://qz.com/work/1635960/whatever-happened-to-six-sigma/?utm_source=digg
McKinsey has always had a terrible reputation for hiring young grads and providing little or no training, guidance and using the same old stuff with every client without really understanding the client's business. They woudl turn up with a concept idea and a load of unfinished templates.
Of course, their defence when it all goes t1ts up is usually that 'the client's hearts & minds were not sold on the change transformation'. In DXC, half the staff didn't know what they were doing with the McKinsey build-sell-delivery model because it was never fully formed. McKinsey who ran off after the draft blueprint with half finished ideas and templates around things like 'pods' and 'green' teams and all the other cr'p that tried to be some agile triage where you could guarantee any service ticket would be lost for weeks and follow the sun as it headed towards Mercury.
But they made a pile of money out of DXC and moved onto the next victim.
"I have my own theory about why the decline happens at companies like IBM or Microsoft. The company does a great job, innovates and becomes a monopoly or close to it in some field, and then the quality of the product becomes less important. The product starts valuing the great salesmen, because they're the ones who can move the needle on revenues, not the product engineers and designers. So the salespeople end up running the company."
- Steve Jobs
By the way, it should be said that both HP and CSC certainly STARTED life with the founders being actual IT people and probably for a time the board members were people who grew up with the company but those founding fathers were swept aside and the pressures from being a Wall Street traded stock did the rest...
Its easy to only see HP and CSC as what they were in 2017, they didn't start like that. At CSC we used to have a poster on the wall saying about the business being started with $50 and two over caffeinated engineers... I know HP had a similar story.
Richer Sounds is not exactly a perfect comparison is what I am saying.
The "trusted board members who have come through the business" under a founding CEO model is not the one that American global corporations run though is it?
That's a very old school model long gone in such worlds.
I doubt if any of DXC's board ever had a job swapping backup tapes or running mainframe jobs or desktop support. I doubt if any of them ever resolved a single helpdesk ticket.
Short of a coup lead by engineering, we aren't going back to that model.
I listened to the BBC R4 program last night while travelling. It should be on the must listen list of all CXOs. ‘Management Consultants are not interested in getting things done quickly. They are interested in billing as much as possible’ along with the admittance that while there is inefficiency in all business, there will always be work for MCs. The CEO at Richer Sounds had the best approach. He has 9 trusted board members who have come through the business. They are best placed to know how to take the business forward. McKinsey came in for a hard time and deserved it.
McKinsey vs TPS Reports
https://www.youtube.com/watch?v=_iiOEQOtBlQ