Sunday, 12 August 2012

CSC 'New' Organisation Model

In July 2012 Mike Lawrie the new CEO of CSC announced a new 
operating model for the company. This model is a global
matrix of business, country and functional teams supporting one another across the globe on behalf its customers. This is obviously an exciting development as it is the first step in Mr Lawrie’s plans to turn around CSC. This plan does indeed upon first reading look ambitious. It talks about work teams, new values and more. But for anyone steeped in global business in large corporations or with experience of CSC either as an employee or customer,  this new model can be seen as nothing of the sort. It is very similar to the model espoused by previous CSC leaders in the previous century. All that has really changed is some terminology. Thus Mr Lawrie has to ask himself what ishe doing so that is so different this time and will succeed where others have failed.

Here is an outline description of the model:
Lawrie’s overall theme in his “new” operating model is global standardization. CSC will have 5 global verticals responsible for the Global 1,000 clients and representing CSC across its client base. These verticals will be responsible for delivering all CSC’s capabilities to that client base. The geographies or countries will have the same role as the verticals, but will focus on regional and local accounts.
Both the geographies and verticals will interact with an Offerings organization which includes application services business, software products (eg FSG, iSoft), BPO and IT consulting.  They will also interact with Infrastructure Services, which is made up of end user services, connectivity services, unified communications services, data center services, storage and compute offering, as well as global enterprise management services.
These Operating units are supported by Global Sales and Marketing operations, and our other staff functions including HR, Finance, Legal.

Earlier attempts to introduce a global operating model in CSC over 10 years ago failed for a number of reasons.
Firstly the definition of the model was never taken down to the ground level. It remained a “30,000 feet” headquarters view of the world and avoided addressing awkward or contentious specifics.
Secondly there was no implementation plan.  Amazingly, CSC’s leaders thought that the fact they had announced the model meant it was in place and working. They continued with this pretence for many years, keeping well away from internal conflicts caused by the model. This led to the complexity and confusion Lawrie complains about today.
Thirdly, the model immediately ran into fierce opposition from certain powerful Country barons in CSC Europe who threatened resignation if they lost their omnipotence in their territories. Mike Laphen, who was Head of Europe at that time, responded by fudging the issue and telling these barons they were still responsible for everything in their countries. This obvioulsy brought them into conflict with global businesses and lines of services. However. as long as they made their budgets, the barons were allowed to continue ignore the new model with total impunity. Indeed their incentives and bonus criteria were never changed to bring them in line with the principles of the “new” global operating model. Over the years, CSC lost many good employees who tried to live by the spirit of a global operating model and in doing so fell foul of the country barons.
In previous posts we have given Mr Lawrie the benefit of the doubt about his intentions to make real and lasting change to CSC. But to successfully implement this new operating model, he must make full implementation non-negotiable throughout CSC; he must have a real implementation plan and executive it; he must bring incentives and reward schemes into line with the model, and with the management behaviors he wants in the future. Lastly, he must change out the bullying management that created the mess in the first place (yes many of them are still in place),  this management which deliberately blocked team working, resource sharing, goals sharing, and appropriate incentive schemes and ensured the failure of the earlier attempts to turn CSC from a Collection of Small Companies into one global organization.

5 comments:

Anonymous said...

Has the new Operating model been translated into French?

SEEN IT ALL BEFORE said...

I and a number of CSC employees question whether Mike Lawrie has the determination to get his Operating model properly implemented in Germany and in France.

This is seen by many in the company as a test whether Lawrie can really effect change in CSC Europe or whether things will continue as before with the country barons calling the shots.

Anonymous said...

In response the the comment of 13th August.
As this is a global operating model that all employees and customers are meant to understand (our interpretation of the announcement) you have to assume that each country chief has done a translation in the local language for their patch. If they have not done so that will tellyou how much that country chief has bought into the model.

Prepared by Cassandra editorial team.

Anonymous said...

Fire the country barons, and bring EMEA under a single management structure.

Do away with excessive leveraging, and ensure adequate resources are located in each country. "What?!" you say...that might mean managing pipeline and having a small number of people on the bench. Well that's an easier solution than yanking resources from different parts of the globe to fix under-resourced projects in Europe.

Anonymous said...

When will they complete it..There are no changes in the employee's position for the past one year..Employees have started to regret their decision to stand with this organisation.