Thursday, 19 April 2012

CSC Lions Sacrificed by Donkeys in Leadership

At the now infamous 'Waffling NHS IT' analysts conference call (see posting of 6th April)  CSC managed to get away without explaining how they were to exactly deal with downsizing and any resultant extra costs. Well what do you know? CSC is now talking about removing 300 people from the workforce just a few weeks after they said any people reductions would be dealt with by voluntary leavers and normal attrition. By saying this CSC must have either been knowingly misleading the analysts and investors, or grossly incompetent. Only time will tell which it was.

However, what we do know that along with the investors being hit in the pocket, many loyal staff who worked long hours, in some cases 60 to 70 hours a week for no extra reward, are to lose their jobs. Not surprisingly the employees are demonstrating in public about this. Read it here from The Register. Meanwhile the leadership who created this mess are still in place drawing large salaries, bonuses and perks. Indeed, they seem to be untouchable. Thus it seems like the scenario from the First World war when millions of men were sent ‘over the top’ to be slaughtered in their millions while senior officers sat in nice safe luxurious chateaus miles from the front being wined and dined. At that time ‘Lions Led By Donkeys’ was a term being used in the press. Although people are not dying we think this term is very appropriate for CSC.

One final comment of the redundancies: If 300 people at £30,000 each are to leave the bill to CSC is at least £9,000,000. This has to be added to the contract losses. Have they been booked yet? Note that as a result CSC will have thousands of square feet of empty offices and data centres to get rid of. Are these costs included in latest forecasts?

The other latest news about CSC in the UK is they have been granted a contract with Government’s Ministry of Defence. This is happening even though Prime Minister David Cameron said in Parliament and on TV for all to hear that CSC was not to be granted any new contracts as the company was not to be trusted. But now we read that CSC is to be awarded with defence personnel records management. Thankfully Mr Eric Bacon MP who sits on the Public Accounts Committee in Parliament is asking for this deal to be called in for review. But perhaps this new contract is a quid quo pro for loss of NHS. Let us wish Mr Bacon MP well in getting this deal quashed.

Other news of this contract, none of it is good, can be found here:


Anonymous said...

300 front-line staff are to be made redundant while the CSC executive responsible for NHS, Guy Hains, continues.

Maybe Mike Lawrie's promises of senior management accountability are as credible as Laphen's promises of "great success tomorrow" were?

Anonymous said...

According to "Seeking Alpha - Market Currents" of today, CSC has laid off not 300 but 640 people in UK.

Anonymous said...

How can anyone trust CSC with their business or go and work for them. The Seeking Alpha posting today is completely at odds with CSC's previous public statements. I have copied it here:-
11:30 AM Computer Sciences (CSC), reeling from losses related to its unresolved deal with the U.K.'s National Health Service, has laid off 640 British workers. The layoffs raise the total number of local job cuts made this year to 1,100. Comment!

Anonymous said...

The HR team is also suffering. They have misled many in the organisation unintentionally because they are under-staffed and under paid.

The entire pay matrix in the organisation is unbalanced and the opportunities for progression reducing.

The UK&I COO was specifically brought in to cut to the bone (and past it in some areas). She has a history of only being able to cut and zero history in growth.

Too many fat cats in each other's pockets. Get rid of the Royal Pavilion cost and move to Chesterfield. No more ivory towers for you!

Anonymous said...

The entire UK&I CSC management team need to go.

Many years ago when I was working there as a PM, there were no politics and no blame culture. Now is completely the reverse. Of the 640 people they will lose (in this first round of redundancies), many will be valued specialists who have just become sick of the organisation. And don't think this will be the ONLY redundancy round!

There was recently a staff "survey" carried out off the back of the "Better by Design" programme that the new COO hiijacked as her own when she joined. Not only has no urgent and immediate action come about from the incredibly poor ratings (with over a 70% response from staff) but now it seems the COO might be made up to CEO!

Andy Williams, the previous CEO, perpetuated the downward slide. For the sake of the company, stop making the same mistakes and put some strong leadership in the CEO role and not simply another stooge.

Anonymous said...

IF CSC HR undertook serious reference checking they would have found out that their last two UK Presidents Messrs Wilson and Williams were not a good fit for the job requirements and that they should not have been hired in the first place.

It looks like CSC may just have made the same mistake again.

ex CSCer said...

Its hard to believe CSC can deliver savings on the MOD Payroll contract without fundamental changes to the way the MoD pays its people - changes which do not seem to have been made.

The MoD runs perhaps the most complicated payroll in the world with an amazing number of variations per person on the basis of courses attended, deployments, temporary secondments... A Payroll designed the way only the 3 forces could possibly have done - fresh from their procurement successes on Nimrod, Typhoon, Type 45...

HP/EDS tried to unify the 3 forces payrolls and had great difficulties, its almost impossible to believe that CSC will do better - expect provisions for losses within a year.