If you are not tech savvy, you will fail at selling...if you do not understand what it takes to deliver from the techie perspective, you will continue to fail when negotiating any SLA, MOA, etc. Just so ya know "New Mike"....you are making the same mistake of the asshats that came before you. You DO NOT KNOW BETTER THAN THE ONES THAT PROVIDE THE MEAT OF THE CONTRACTS. It would serve you well to STFU and learn to listen for once.
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I'm not seeing this 'progress'
DXC's net worth was just over $30 Billion in May 2018. In June 2020 it is now less than $4 Billion i.e. its value shrinking $13 Billion every year.
The sell off bought it some more time to try and grow offerings even if the market isn't biting. As a result its operations cash flow has also reduced over the past 2 years from $3,243,000 to $2,350,000.
It can only increase cash flow by:
- More cost cutting. It hasn't worked so far. Some profitable revenue product lines suffered cuts in staff which meant delays on delivery and poor managed support. Continued costs reductions have failed to match the speed of the corresponding revenue decline in areas that DXC had expected to be strong product lines. The 'Bring the kids in' strategy produced mixed results. Many left after their contract lock-in expired or became early complainers in a sea of declining morale that DXC were hoping the new recruits would change. They liked the potential good career, but the toxic environment proved too much for many who gave their thoughts on surveys and town halls leading the President and CEO to tackle this head on with a surprising announcement that if staff did not like the current work environment then they should leave! And many of the young DXC staff took this advice. Because they could: nothing to lose.
- Manage its inventory - chaotic to say the least with DXC's continued investments in non-profitable product lines in the belief that they may...one day...mature into some repeatable workflow that clients wish to procure;
- Increase profitable sales - some successes had with up-front payments, progress payments. But DXC clients are more savvy that DXC have given credit and keep an eye on the open market for what competitors offer for a lot less. Also compounded by a loss of profitable contracts from the days of outsourcing and pure play with long delays on new contracts and clients cancelling on promised work;
- Evaluate payment terms - DXC already screwing suppliers with payment delays at best they can. It's not unusual for large enterprises to do this even if it may appear unethical. Several suppliers raised disputes but were ignored.
- Segment the customers focussing on the profitable ones. Normally banking and financial clients, though many have their own SaaS and just use DXC as the infrastructure back room boys. Customer engagement, focus and building relationships has suffered greatly through staff cuts, lack of continuity and overuuns with an almost arrogant acceptance that DXC can afford the penalities so what does it matter?
Changing the President didn't work; Changing the operating model still looks like a square peg in a round hole but at least the management and marketing have names for product solutions now even if the technical workforce still have no idea what any of the names mean or how they are enabled in practical terms.
I agree with OP. Only techies know the strengths/weaknesses of the people that comprise their teams abilities to deliver. It is not rocket science. But of course rocket science is a very wide gap from having a business degree that DXC management is not equipped to fill.
Just the same B.S. in the Uk- they had the b1on1cs Dwarf selling BS that was just scripts harvested off the 'net and tailored by hand to each account and application. Also, the 'secure accounts' teams full of BS and the clients have finally seen through it.
Yep it's a positive decline so far over the year under new Mike revenue has declined and forward orders also going so company going downhill.
To be fair to Sal his kept it afloat by offloading the medical side by 5 billion and 0.5 billion $ sales which keeps the market happy.
Going forward can keep on selling and this stack thing isn't taking off so what are you going to do?
Or are you in for the short term, and once you've got your money you'll go?
Hey, how dare you (*puts on Greta Thunberg voice).
Don't you know never to question the godlike vision afforded by consultants from the Big 4, Accenture, McKinsey and the like? Some of them even have an MBA, which is essentially like having a superpower, and FAR more important than understanding technology.
(caution: this episode may contain sarcasm)
I think the message is find a new job before you are forced to.
163YMBrm agree - there's no chance to save this company and decline is continuing under Sals' leadership not changing things from disasterious Mike Lawrie reign
More parts of the company will be sold off, endless WFR before the carcass is sold off to a competitor of DXC.
@zmv+163YMBrm This company hasn't made progress, but has shrunk over the last three years. Don't believe me? Look at the stock price from 3 years ago ($57) till now ($17). It is inexcusable.
I would agree about the 'tech' sell, sales types must be well equipped. The CXX audience on the whole are flummoxed by IT these day, but will have tech auth present from 2nd meeting in. An ex system/security guy with soft customer facing skills to match, will always fare better - IMHO.
If the juggernaut can ever get away from the 'tech' sell pitch with a service or 'intellectual' pitches the "widget minions" may be of value... However, the retired techie with soft skills can do both types of sale!
If the sales people aren't selling anything doesn't really matter, and the management don't seem that bothered as theres no sales push.
The book to bill is red but theres been no positive news how they are going to change that. So much other waffle but nothing tangible on new orders.
Seems some disgruntled gentlemen. Patience please, we are making progress.