It is clear to me that they are imminent. Are there any new details?
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First up, the P&L is a forecast of a project. It does not tell you a thing about EAC and burn rate.
FF hours, dollars, and such are very hard to figure out. The only way you can do it, is to take actual hours, cost rates, and compare to P&L to determine your current margin and projected EAC margin.
I tried to explain this to a Director once and was told to just use the FF numbers. So the entire leadership chain thinks their numbers are good... but EAC is gonna mu---r them.
As for success tiers. 1 customer... only 1, is on Optimized. The other 99% only went to essential, and that's of those who went. I'd say at least 50%+ of clients are on premier or have several systems still on it.
The success tiers are a total failure. MS is bleeding margin because they ki---d MS' accountability and gave it to CS mo--ns who chortle S1 process all day long and think MS is just childs play.
MS is losing accounts left and right. Losing Apple just cost us Manilla, and with it a few more renewals are now totally hosed.
If MS margins have indeed improved then one of two things must have happened:
- Revenue has grown faster than cost
- Cost has decreased more than revenue.
TDC does not report MS revenue so it is hard to tell if revenue has grown. The recent detach of MS revenue from ARR indicates that it is not growing.
It is hard to believe how the costs could have decreased either. Before 2019 MS was extremely lean as it shared the mgmt layer with consulting. Since then another management layer was built: hundreds of non–value adding managers were added. The packaged service tiers are extremely poor value and really quite embarrassing so I doubt that any customer really bought those as the fundamental idea of them is that they are nothing but pure margin. Admitted, MS delivery may have become more optimized over the last couple of years and more of a resource pool serving multiple customers instead of dedicated ms consultants serving specific customers. Then again, it is next to impossible to believe that delivery optimization and the success tier c––p could have offset the massive influx cost of higher–cost–country–based managers. There is one thing, though, that may explain the increased MS margins: up until last year MS resources were all from consulting. MS had access to zero overhead resource pool; consulting P&L got all the bench time, vacation cost, training, sick leave in exchange for cost recovery, while MS just paid internal cost for delivered work. This started changing last year so it is probable that MS profitability has plummeted.
@6kel+1a9EW2vL there is such thing as a PnL which shows profitability of the MS business
@6grw+1a9EW2vL yup - they shut down the entire practice. Good luck India - you're next.
@6lku+1a9EW2vL Re: Margins
Anyone who says they know what the overall MS margins are in comparison to the past is lying. Financial Force data is not only just inaccurate, it is a complete cluster f$&#! It is so bad, I have hard time believing they can even prove SOX compliance.
The only folks who know their margins are the VERY few old-school SEMs left, who still know how to manage their stuff. The MS turnover since being sucked A$$ first into CS&S is over 90% now.
Major layoffs at the Manila PHT office today
Those who say MS margins got worse since the detachment from consulting don’t know what they are talking about. Reported improvements in margins show the opposite, even though some customers have been lost . At the time (and it looks like still) consulting was unhappy about the detachment because they used MS margins to hide behind their failure on consulting projects.
But true, SEM’s months are counted.
MS beat their numbers 11/12 years, ran the highest margins in all of TD, and did this having a zero overhead business. DH got a hard dongus seeing this, and took it over, ran off all the leaders and burnt it to the ground using clueless CS mo--ns. Two of the largest MS contracts are now forever gone: Apple and Ebay. Many more following. Unacceptable.
SEM was never a value adding role. Detaching MS from consulting was crazy: all that came out it was overhead, cost and customer dissatisfaction. Now that MS is no longer sacred ARR cost suddenly matters and SEMs are history.
The Directors don't care, and yes you are right, most are playing the CYA game. It's sick, and I'm looking forward to have TD in my past.
@3ivq+1a9EW2vL - I'm not certain it's NDA stopping them as much as just watching after their own back. If the Directors cared at all, they would warn the SEMs. When I left the role last year, I directly asked about it and was reprimanded.
Imminent. The CSR role will be 100% gone by end of Q3. SEMs are next as they get Tijuana going full steam. Mgt already ball gaged with NDAs.