Wednesday, 2 July 2014

Lawrie 'suffers' pay cut of almost 40% to US$ 13.2 million in FY2014

As several of our correspondents have noted, CSC recently issued its FY2014 Proxy Statement which can be seen in the Investor Relations section of the CSC website.

The proxy contains much information, including details of senior executive compensation. Here are some salient items:

·       Mike Lawrie’s total compensation for FY2014 was US$ 13.2 million, almost 40% below the US$21.3 million he earned in the previous fiscal year. He received 116% of his target annual incentive bonus, despite the company missing its revenue and operating income targets.
·      He has unvested stock options worth US$14.8 million.
·      If he is terminated after a change of control of CSC, he is contractually entitled to severance payments of US$34.3 million. If terminated (other than for “cause”) without a change of control he is entitled to US$14.5 million.
·      
    The CSC executives’ annual incentive bonuses will no longer be capped at 150% of on-target, which amount required achievement of 120% of financial objectives. In future it will be possible to earn 200% of the on-target bonus on achievement of 150% of financial objectives.
·      
    David Zolet received an increase in base salary from 
    US$475, 000 to US$550,000 to 'bring him up to market median'.
·      
    The company’s revenue target for FY2014 was US$14.252 million, of which it achieved US$13.079 million or 92%. The operating income achieved was US$1.315 million, being 93% of its target of US$1.421 million.
·     
   The SEC investigation into CSC accounting irregularities and the accounting for the NHS program is ongoing. However, the company has settled the five Class action lawsuits brought against it and former CEO Mike Laphen and others for allegedly misleading investors about the true situation of the company’s finances. 
    There is also currently the law suit from employees claiming for unpaid overtime. For details see this link

The questions these points raise for us:

·      What justifies the differing standards of treatment between the normal employees and senior executives? There are probably thousands of CSC employees who are paid below market who, unlike Mr Zolet, received no pay adjustment; there are no doubt many CSC employees with truly outstanding performance whose bonuses have been cancelled, while the senior executives enjoy an increased bonus ceiling;  employees who fail to achieve two of their their three major objectives will be rated as “not meeting requirements”  in the famous performance bell curve, yet Mike Lawrie misses his revenue and operating income targets but gets 116% of his target incentive and in July 2014  gets an additional  special off-cycle us$2.5 million stock bonus for “outstanding performance”.  

This culture of dual standards is not unique to, nor even new to CSC. The five years preceding Mike Lawrie’s arrival at CSC were marked by one set of standards being applied to the workforce and a different set of standards enjoyed by the CEO and his acolytes.

·      
    Is Mike Lawrie’s performance worth the US$ 35 million compensation he has collected in the past two years? A shareholder would probably say he is worth it. The weighted average stock price of CSC in the 3 months before his arrival was just above US$28 per share. During his 2 year tenure, Mike Lawrie has boosted the share price by over 100% and sustained it at that level long enough to allow shareholders the opportunity to sell their holding in CSC at a good profit, or at the very least to recover the significant losses in shareholder value suffered during the tenure of previous CEO Mike Laphen.   CSC employees will no doubt be much less enthusiastic about Lawrie’s achievements with good reason. But unfortunately for employees and customers, the Board of Directors put in place a compensation framework which rewards Mike Lawrie richly for boosting the share price, not for rebuilding CSC, nor satisfying customers, nor for earning the respect and loyalty of employees.
    CSC has 'form' in this regard as those of you with long memories will remember from this earlier post 



·       So where is CSC going? We continue to believe Mike Lawrie’s strategy is to keep CSC share price as high as possible in view of a sale or break up of the company. This means keeping the Earnings Per Share as high as possible at all costs. Nothing we have heard suggests CSC is rebuilding or strengthening its position on the market.  Revenue is declining, sales performance is disappointing, recompetes are being lost to competitors,  highly skilled technical staff are leaving, voluntarily or forcibly,  and value is being hollowed out of the company to prop up quarterly profitability. Thus the high share price.  


    It is notable that CSC missed its revenue target for FY2014 by fully 8%, showing that Mike Lawrie had expected and planned for revenue growth in the year, not the continuing decline we are seeing.  For these reasons, and what we hear from our correspondents, we do not believe CSC’s current profit and share price are sustainable, thus we continue to be skeptical about CSC’s future.

87 comments:

Anonymous said...

In my 8 years with CSC...
- Frozen Pension
- Forced Vacations
- Health Plan change to crappy High Deductible Plan
- 401K Match to Annual payout
It's good to be King!

Anonymous said...

I "met expectations", but still got 0% pay rise.
Apparently my boss had recommended something in the compensation review, but to their surprise this was snuffed out at a higher level.
Good to see the execs doing well for themselves.
Whatever good will was left towards CSC, from the people who actually deliver the service must be going out of the window

Anonymous said...

From this point on, how can CSC executives (with bonuses in their pockets) really stand up in front of employees with any sort of credibility? Leadership? Pathetic.

Anonymous said...

I'm curious to know where they got the money to pay the large salary. Has CSC actually won any new contracts recently?

Anonymous said...

The salaries of the thousands that have been laid off globally have been pooled to give bonuses to executives. Employees meanwhile have been given "deferred hikes" - trust CSC to come up with newer ways to shortchange hardworking employees.

Anonymous said...

Hmmmm - All I can say that after work for CSC for 12 years, things are just getting worse and worse on the ground. 6 years now without a pay rise. But I feel better know that the top bosses are having their bonuses limits put up.

What a pile of pooh !!!

Anonymous said...

I worked for CSC for 9 1/2 years when I left in April. I didn't have a pay rise for 5 years but did get 1% last year. I'm sure some managers get more and they still get a bonus on our account. I was hanging around for a payoff after most of my work was offshored but it looked like they may cut the pay out plus I think I would have been pushed to go an work in Milton Keynes for a £20K pay drop was I'd lose my overtime and callout from my old account. For me, jumping for a better job and more pay rather than waiting around CSC any longer, seemed the best option. My ex-colleagues are now at risk but they have been sitting around for year now doing very little so as are some of the managers. In some ways CSC can afford to cut on certain accounts as most of our work is offshore now anyway.

CSC are not highly thought of these days and feel I have a future unlike when I worked for CSC who always said ours jobs would be offshore one day. 9 1/2 Years later they were still offshore my job and only did so when I left!

Anonymous said...

Hey - allegedly, it's all going to get better - well that's what Our Man Businski says is going to happen in GIS --see this -> https://c3.csc.com/people/gbudzinski/blog/2014/07/02/delivering-an-improved-client-and-employee-experience - if you can access C3.

If not - it says something like "Outdated tools and processes. Geographically dispersed teams. Stagnant career development. An inconsistent client experience. Subpar financial results" and then waffles on about how all that is going to change soon (I didn't write that - he did!)

Well - a whole sentence where management actually "admits" that they "know how it is" out there - even if viewed from a different planet?

So- get ready for the changes eh? They'll be happening soon! Then again - based on previous experience..... are they really going to happen?

No! Don't spoil it and tell me - give me time to think!

Anonymous said...

Leave. Work to rule. Claim every penny you can. Claim all overtime/oncall you can get. If work from home - do as little as you can (sametime can make it beep loud to get your attention).

Plan for your redundancy and look for other jobs and get interview experience in the mean while.

Dont give your manager a hard time. Just keep smiling and do as little as you can.

When the emails from corporate come out. Keep smiling.

Do not do one extra thing for free, make them pay or do not do it.

Support your colleagues, not the corporate management.

Try not to worry.

Appraisals - as long as get average - that is fine. Anything worse - kick off about it!

Have a lovely weekend Casandra fans.

Anonymous said...

As someone who left CSC several years ago before the rot really set in - although it was obvious that the boll weevils had laid their eggs in the crop - I do wonder why employees hang around. The message management are giving staff is 'we are so important we have be paid even for failure - whereas you lot are a drag and an expense on the business and you need to be dealt with'.
Employees that being the case where is your self worth and pride?

Anonymous said...

A lot of them,certainly in the UK,have very attractive Ts & Cs which kick in if they are made redundant, they get nowt if they walk
I escaped with a significant amount and cracking pension paid immediately
My heart goes out to those still in that dreadful, compassionless company

Anonymous said...

Greg Budzinski made $3.3m in 2013 of which $2.7m was bonus and performance related pay. I’m not sure it was deserved.

Take a look yourself and make a search on C3 for Budzinski and Greatness. You’ll find a post he made on his blog about the Greatness T-Shirt. Take a look at the photograph with his team and the Greatness T-Shirt – they look to me like a group outing from the local lunatic asylum. (No disrespect intended to anybody with a metal health illness). To me they look like a group of people I wouldn’t trust with leadership of any significant organisation and his recent post doesn’t change that opinion. Like all ‘leaders’ in CSC – not to be trusted!

Anonymous said...

People have different reasons for staying at CSC. For me, it is a combination of things. Even with the ever shrinking benefits and stagnant salaries, I feel that I am being compensated fairly based on the local market. I am assigned to support one customer and the CSC team supporting that customer is a good group. The account has a good margin and the customer is getting value from CSC. I enjoy the my team and my manager is a straight shooter. I get four weeks of vacation. I am working with current technology (i.e. marketable) and am learning new stuff every day. Our team is succeeding DESPITE the obstacles continually being thrown in our way by CSC Corporate. If CSC sacks me, I have skills and connections to get a new job. I am sticking it out because, overall, it is a good situation. However, I'm not stupid. I have my resume up-to-date and would leave if a great position comes my way. Haven't heard yet if I will get a raise in 2014. Should know soon. If the raise is NIL, I will accelerate my job search, but would only leave for a permanent position with a good company. If I am sacked, of course I would expand my search to include short term assignments.

Anonymous said...

If you read Ian Cringely's latest comment about IBM you will see a parallel once again with that other three letter company so dear to our hearts. We all *know* Mikey is just playing the IBM game with CSC, he doesn't know any other game. He thinks that by executing the same strategy as Big Blue he can win too - I mean nobody ever got fired for copying IBM did they?

Cringely said this about IBM on Seeking Alpha, try swapping the names around:

"IBM has in the last eight years spent $101 billion buying back shares. That is more than the company's profit for the same period. They have done this by selling businesses, borrowing money, and engaging in risky accounting. Read the latest IBM annual report and count the more than 100 instances of the term "non-GAAP" -- techniques that could be found illegal at any moment. IBM's customer is no longer Big Business, it is Wall Street and the company will do anything to increase earnings per share because that's the primary basis of executive compensation. You get what you incentivize. IBM starves old businesses to invest in new businesses not because it makes good sense to do so but because it plays well on Wall Street, which tends to buy on the sizzle not just on the steak. IBM abuses customers, who are fleeing when they can and are trapped when they can't (Buffett's point). IBM employees are miserable, having gone many years being overworked and under-appreciated, working 60-70 hours per week while their benefits erode. The best of those workers are already gone, each replaced by 2-3 engineers from India who are touted as adequate replacements but aren't. The problem with IBM is that it long ago stopped minding the business and now MINES it. David Stockman points out that the company is returning 15 percent of its market cap to shareholders every year. How long can that continue? Yes, the company can make money while shrinking but shrinking is an endgame, not a way to run a continuing business. "

Anonymous said...

Csc fall of dead beat loser staff. Especially uk where ex royal mail and ex bae rule roost in preston chorley and chesterfield. Milking the company and sacking people in the south when they can. Disgrace they get away with it actually.

Anonymous said...

Not the appropriate place because it deserves its own topic, but wait till the new vacation policy screwing hits the airwaves tomorrow. If people really don't start walking out the door in droves after that, they never will. Stay tuned!

Anonymous said...

Will Lawrie be paying if this law suit against CSC for non-payment of overtime wins?
http://www.crn.com/news/channel-programs/300073308/lawsuit-alleges-csc-not-paying-overtime-to-systems-administrators.htm

Anonymous said...

Several key managers and executives are leaving the Blythewood SC office. They and others may appreciate the recent article in the Washington Biz Journal "There's the door: How CSC drove out much of its workforce ... on purpose"
http://www.bizjournals.com/washington/print-edition/2014/07/04/theres-the-door-how-csc-drove-out-much-of-its.html

Anonymous said...

I'm sure this article is very interesting but not worth a $103 subscription. Really?

Anonymous said...

Any chance of cutting/pasting the article to this Board, so that i don't have to subscribe to the website please?
Thanks.

Anonymous said...

CSC is forcing people to quit. This is illegal in most countries, and sooner or later this company will be on the headlines again for its unethical practices. We all know that laws are really easy for corporations when there are redundancies, etc and that at the end the law says that compensations are just a few peanuts for every worked year. Unfortunately CSC doesn't even want to pay those peanuts. Ethically speaking this is going to be a boomerang for CSC because sooner or later those employees will be on the other side of the table advising for contracts and guess what... nobody will recommend CSC. Good luck with your greedy unethical orders Mr ML

Anonymous said...

This is part of what can be read. The rest is behind a pay wall. Anyone got access to it?

Washington Business Journal
In June, Computer Sciences Corp. employees received a memo from management ambitiously titled “Striving for Profitable Growth.” It came with an unusual request: Take one to three vacation days, and do it by July 2, the end of the fiscal quarter. The reason? Vacation balances equate to a liability on the balance sheets. The message? Trim them down and bolster operating income.
The memo called it a “voluntary vacation push.” But far from buoying free will, it left a bad taste in some employees’ mouths.
“If my memory serves me right, this will be the eighth time they have requested ...

Anonymous said...

Not sure this deserves a reply. Many years ago there were many people who were tossing it off on the accounts you mention. However I look around the office today and I see many people who are working very hard on under staffed projects, working a load of extra hours and weekends just to meet targets.

Anonymous said...

Next plan looks like POD based delivery centres, if they can't offshore you they move your role to some rat hole in country... an interesting disclosure of the FAQ about that here:

http://www.thelayoff.com/computer-sciences/post/5343032228446208#replies

Anonymous said...

Update - Compensation increase was NIL. Accelerating the job search. I will feel some remorse in leaving the mess with my colleagues, but CSC has spoken through its actions. Employees are overhead to be culled.

Anonymous said...

Haven't heard anything on this... what is the new vacation policy?

Anonymous said...

A message from Donna Lesch
EVP & Chief Human Resources Officer

This communication is being emailed to all CSC employees.

Colleagues:

As we enter the Growth phase of CSC’s transformation, we continue to examine our business practices and make changes to ensure that CSC is consistent with market practices, remains competitive and is positioned for optimum growth.

Recently we reviewed our global vacation policies and practices and made some interesting discoveries. Notably, we found that many employees are not actively taking their vacation time. This issue has implications for both CSC as a company and for all of us as employees.

First, from a company perspective, vacation time that has been accrued, but not used, results in a liability that negatively affects the company’s financial position. Second, by not taking vacation time, we are setting ourselves up for burnout and missing out on valuable opportunities to rest, recharge and take time with our friends and families.

In response to these findings, we have identified ways to harmonize aspects of our vacation policies and bring outdated policies up to date.

So today we are announcing several items related to vacation policy and practice. These are global, but there may be some variation in implementation due to applicable country laws, regulations, labor agreements or individual employment agreements.

Key Changes
Here are the headlines:

Our vacation policy will change to require employees to use vacation leave in the calendar year the time was accrued. This will encourage all of us to take regular time off and also will address the balance sheet issue.

CSC will close its worldwide offices annually for a period of one week (five days) to generally align with the last week of December. We will join a growing number of large companies and customers who observe similar closures during this time of year.
For 2014, CSC will close all offices for the four days of December 26 and December 29, 30 and 31.
Each country will select at least one additional day for closure (linked to a holiday that is appropriate for their region).
Employees will be expected to use vacation leave to cover the planned closure where applicable by country law, regulation, labor agreement, or individual employment agreement or contract.
Critical staff and employees directly billed to a contract will receive instructions from their supervisor whether to report to work during the shutdown.
Country and regional variations may apply.

Partial day recording of vacation time will be permitted in the U.S. to bring it into alignment with the rest of the company, where this practice is already in place.

Finally, vacation is a benefit designed for each of us to rest and recharge. Let’s all strive to help and support each other to take the time off we need, unplug and rejuvenate.

Next Steps and More Information
Please watch your email for regional or country-specific communications where these changes will be covered in more detail as they apply to your location. Employees in the U.S. will receive an email today, while other regions will communicate more details during the next few weeks.

Anonymous said...

"Employees will be expected to use vacation leave to cover the planned closure"

So five of our vacation days are now mandated by CSC? And if we have any days left after the "planned closure," they will be lost at the end of the year? Awesome.

Anonymous said...

Hurry up and SELL the company.. maybe the new company will give me my Benefits back!

Anonymous said...

Well Anony 8th July 18:35, no idea where you are based, but nothing in that new policy is new to the UK - except maybe the bit about adding " at least one additional day for closure (linked to a holiday that is appropriate for their region)".... "at least".

Maybe we should have April 20th, that would be quite fitting...

Anonymous said...

So, today Cyber/Big Data/Cloud become real businesses and not incubators. To celebrate this wonderful success story, they've created a new layer of management.

Way to go Mikey, slimming that old VP layer down and cutting the payroll...

Ashish Mahadwar's LinkedIn page says he love's "working with bright people who challenge me". Well, you'll have a challenge there Ashish, but sadly I don't think "bright people" would be how I would describe your new peers...

Anonymous said...

CSC never goes to court, they always seem to settle lawsuits out of court. The money has to come from somewhere...

Anonymous said...

What company in their right mind would buy CSC in its current state?

Anonymous said...

This communication is being emailed to all CSC U.S. employees from Donna Lesch, EVP & Chief Human Overhead Officer.

Colleagues:

Earlier today we communicated high-level changes to our global vacation policies. I’d like to follow-up with specific changes that affect employees in the United States.

Here are the highlights:

Use Vacation Leave in the Same Calendar Year
Our vacation policy will change to require employees to use vacation leave during the calendar year in which the time was accrued.

Carry-Over Days Limited to Five
Employees may carry-over vacation not used by December 31 of a given year, up to a maximum of five days, into the next calendar year. Those carry-over days must be used before the end of the fiscal year or they will be subject to forfeit.
Note that exact dates can change annually due to local payroll cycles. For 2014, the last day of CSC’s calendar year will be January 2, 2015. The last day of FY15 will be April 3, 2015.
Vacation hours earned through July 4 and those earned on July 5 and going forward will be tracked and accounted for separately.
An important note: Unused vacation hours accrued through July 4 will not be subject to forfeit. Vacation hours earned on or after July 5 will be subject to the new use and forfeiture requirements.
Use of vacation hours will be on a first in, first out basis. When an employee records vacation hours, legacy hours will be used first. After these legacy hours have been used, non-legacy hours (those accrued after July 5) will be used.
CSC will offer a one-time opportunity to receive a cash payment in lieu of time off for accrued vacation hours. The payment rate will be 40 percent of the value of the time based on an individual employee’s salary. Details about this program will be communicated soon.
Both legacy and new vacation hours will count toward the existing vacation earning ceiling of one times the annual vacation accrual rate. This is unchanged from current policy.

Annual Shut-Down
CSC will close its worldwide offices annually for a period of one week (five days) to generally align with the last week of December. We will join a growing number of large companies and customers who observe similar closures during this time of year.
CSC will close offices for the four days of December 26 and December 29, 30 and 31.
In addition, CSC offices in the U.S. will close on August 29 (the Friday prior to the Labor Day holiday weekend) so that we can reach our five-day goal.
Critical staff and employees directly billed to a contract will receive instruction from their supervisor whether to report to work during the shutdown.
Employees will be expected to use vacation leave to cover the planned closure.

Vacation Advance
We recognize that this policy change may pose challenges to employees and new hires who may have limited vacation leave accrued. We will establish a vacation advance process, with manager approval, whereby employees may request up to one standard work week of advance leave.

Partial Day Recording
Beginning on August 10, employees in the U.S. may record vacation leave in partial day increments, bringing them into line with employees in other regions. More information will be communicated soon.

Anonymous said...

Watched the documentary on Lance Armstrong and 48 minutes in - Team CSC - who it said were heavily involved in doping. What a lovely piece of sponsorship CSC had for a few years. http://www.independent.ie/sport/other-sports/irish-sport-stars-take-to-twitter-after-watching-lance-armstrong-documentary-the-armstrong-lie-30413328.html

Anonymous said...

All,

As indicated with Incentive Compensation Plan communications earlier this month, CSC’s financial performance for fiscal year 2014 was mixed when compared with our expectations. Across the board, our company made real progress on cost takeout, which resulted in higher profit margins. At the same time, CSC fell short of our targets for bookings and revenue. Since our long-term success and growth depends on our ability to meet key business, client and financial targets, it is important that our compensation plans are aligned with the results we achieve.

FY14 Sales Incentive Compensation Plan (SICP)
FY14 SICP 1-5A and 7-10 included a Global Commercial Operating Income (OI) component. The component was weighted 10-20% of your On Target Incentive (OTI), depending on the plan assignment.

For SICP participants who are in the Global Commercial organization, there will be no payment for the portion aligned to the OI component in your plan (10-20%). The specific percentage of your OTI aligned to this component can be found in your plan mechanics addendum distributed through Xactly.

That said, thank you for all you do every day. Your work is recognized and I hope you will please feel free to contact me or a member of the Sales Compensation Team with questions.

• Global Industries & Americas Region: Craig Wiemer
• UK & I, Central and Eastern Europe, Nordics, and South and West Regions: Sabine Stark
• AMEA and Australia Regions: Imilda Sutanto
• GIS, NPS & Global Alliances: Susan Young
• GBS, Sales Hub & Incubators: Sahar Cook


Thank you,
Matt Angell
VP, Global Sales Operations

Anonymous said...

Eventually, someone is going to realize that CSC's Big Data Platfom as as Service is all Free and Open Source Software just bundled and configured for them to install. But they will only host Dev and Test environments in Amazon or CSC Cloud. Using Google, Yahoo, Facebook, and Twitter's old software that they benevolently open sourced is believing that they have not developed something better already.

Point being Google is on to a bigger and better platform. Good luck CSC with competing with Google. The Dual of the Evils has begun. When the BD&A CTO is out and the Infochimps folks start heading for the door, BD&A will pivot back to the hole from which is came.

BD&A recently started an "Alliance" with their much better managed group GBS out of pure desperation.

Anonymous said...

Thanks Matt but the purpose of this site is to allow contributors to express opinion freely and counter the questionable official CSC statements that we hear repeated day in day out like some monosyllabic mantra. We are quite aware that the senior management have come up with a calculation for performance that will not pay. Don't forget that the "organizational performance targets" that we "didn't meet" were not set and agreed by those who would have the task of achieving them. If it was so important to achieve a bounce back in share price why are we not all judged on that criteria like Mike? I am sure that given a few minutes I am more than capable of setting even you a series of goals with interdependency on others that you could never achieve.
Your response on this forum clearly reinforces the generally held view that you guys just don't get it. You cannot see the damage you are inflicting on the business and are merely throwing the ballast overboard to keep the ship afloat.
How anyone with any idea of management at all considers an appraisal system such as ours even worth getting out of bed for is beyond me. Like many others I achieved a majority of exceeds expectations scores with no areas scored at partially meets and then from nowhere an overall rating of partially meets.
Well I have to say that being scored as partially meets from CSC management is ironic considering that as an organization to work you guys can only dream of being judged so highly by your employees and clients.

Anonymous said...

Hi,

Does anyone have subscriber access to the following article, and can cut/paste it to this forum please ?

http://www.bizjournals.com/washington/print-edition/2014/07/04/theres-the-door-how-csc-drove-out-much-of-its.html

Thanks..

Anonymous said...

My appriasal pointed out that I was doing the work of three people (the other two were made redundant), that I was going above and beyond on a politically difficult customer account on a regular basis. I had an even split of 'surpassed' and 'met' expectations. Final rating - Met expectations. No payrise.
So I have decided to meet expectations for the next year. No more above and beyond. No more doing the work of three people. The word NO will be used more often. Time to go get a coffee.

Anonymous said...

Part 1 SUBSCRIBER CONTENT: Jul 4, 2014, 6:00am EDT
FedBiz Extra
There's the door: How CSC drove out much of its workforce ... on purpose
Mike Lawrie's restructuring tactics at CSC are making employees feel left behind. And that's entirely the point.
View Photos

Joanne S. Lawton
In March, Linda Sue Hemingway stepped down as a CSC manager. She said the company underrated her team as part of a new worker evaluation system that slotted 40 percent of the workforce as below expectations.
In June, Computer Sciences Corp. employees received a memo from management ambitiously titled “Striving for Profitable Growth.” It came with an unusual request: Take one to three vacation days, and do it by July 2, the end of the fiscal quarter. The reason? Vacation balances equate to a liability on the balance sheets. The message? Trim them down and bolster operating income.
The memo called it a “voluntary vacation push.” But far from buoying free will, it left a bad taste in some employees’ mouths.
“If my memory serves me right, this will be the eighth time they have requested employees take vacation in order for them to meet their numbers,” said one employee of 15 years, who requested anonymity for fear of losing his job. “It sends a message to all employees that CSC doesn’t care about you, you’re a number — that’s all. They talk out of both sides of their mouths.”
In fairness, the most disgruntled employees are often the first to speak up.

Anonymous said...

Part 2 - But judging by the dozens of irate emails and phone calls the Washington Business Journal received after CSC’s recent changes in employee policies, it’s clear that a growing faction of current and past CSC staffers viewed the vacation “request” as the latest example of management putting profitability above employee satisfaction, stock price above workforce loyalty.
CSC says that’s out of necessity. The company brought in CEO Mike Lawrie in March 2012 to remedy its worsening financial condition, and that turnaround, albeit costly in workforce, has translated into a funded pension plan and more resources for staff education and training, CSC officials said.
“The company was in an unsustainable position. The leadership had to take decisive action to save the company, retain as many jobs as possible and position CSC for the future,” said CSC spokesman Rich Adamonis. “It is correct to say that in many respects, the past two years have not been easy on CSC or its people. We have had to make difficult decisions to get costs under control and improve performance.”
And yet, the fact remains: That restructuring is actually working. CSC’s stock price has soared right along with its profit margins, even as morale has plummeted and driven many to head straight for the door.
Which very well could’ve been exactly what the company was hoping for.
Trimming the fat
The new age of federal austerity has led most contractors to trim the fat — downsizing their workforces and real estate footprints and consolidating divisions to eliminate redundancies. But CSC’s tactics have been arguably more aggressive than those of its competitors.
In the two and a half years since Lawrie was tapped to turn the company around, CSC has cut real estate by 2 million square feet. It’s reduced its layers of management by 40 percent. It shed 19 percent of its workforce, dropping from near 100,000 employees by the end of fiscal 2012 to 79,000 employees by the end of this past March. During its fiscal 2014, which ended March 28, CSC trimmed about $570 million in expenses by instituting what it described as more disciplined contract management and paying more attention to the supply chain, workforce optimization and enterprise overhead reduction.

Anonymous said...

Part 3 - Those buzzwords have translated into just the policies that are causing so much consternation among employees. That was most visible, perhaps, when CSC introduced guidelines for employee performance reviews this year based on a strict bell curve — with the expectation that 40 percent of the workforce will fall short of expectations. Tied to that came another policy, where only employees ranked among the top 15 percent — and in select cases, those supporting markets deemed critical for corporate growth — will be considered for merit raises.
“Our success depends on our ability to meet key business and client goals, and to build a high-performance, results-driven workforce,” said Donna Lesch, CSC’s executive vice president and chief human resources officer, told the Business Journal as the company rolled out the evaluation plan. “We have a framework in place that holds each employee accountable for delivering results, provides guidance for managers to differentiate individual performance, and appropriately compensates our strongest performers for their strong leadership and outstanding contribution to CSC’s growth.”
The casualties of change
In theory, these policies encourage managers to work with employees to set goals and, eventually, drive higher performance. But employees say what they do instead is weigh heavily on morale and drive people to leave the company entirely. After watching upper management underrate her team, Linda Sue Hemingway resigned in March from her job as manager of program control for such CSC customers as NASA and the National Oceanic and Atmospheric Administration.
“I resigned from my six-figure position because I refused to go along with the damage they are inflicting on hard-working and dedicated employees,” she said. “They tried to play this game quietly last fiscal year, asking me to change my ratings for my people. I refused,” causing her own rating to fall for the first time in eight years to a “2” for meeting expectations from a “1” for exceeding them. “This year, I had no say,” she added.
Hemingway expects the policies to end in a wave of resignations, particularly with performance reviews now complete and raises — or lack thereof, as the case may be — scheduled to kick in this month.
Still, other industry observers expect that’s entirely the point, describing these policies as a deliberate effort by management to weed out certain factions of employees. That would include low performers, certainly, but also those who don’t support the new, narrowly defined focus areas for CSC: big data, agile software development, and virtualization and system engineering, to name a few. Employees who don’t support those areas tend to have been on the job a while, are often older and collect sizable paychecks. A convenient truth, some say.
Here’s how one corporate advisory expert, Chris Helmrath, managing director at SC&H Capital in McLean, explains the company’s thinking: “What if I put together a program that was corporatewide, that got me away from the traps of labor law? What if I could come up with some benchmark to weed out those with tenure — perhaps by saying, ‘You did great yesterday, but don’t have the skill set to do the job tomorrow’? That would put me in a better place for bringing in someone out of college that can do the work for a lot less.
“One way or another,” he said, “CSC is doing what they have to do. They’re setting themselves up for the future.”
What’s good enough for Wall Street…
The employee strife hasn’t obscured one simple fact: CSC’s tactics are working.

Anonymous said...

Part 4 - For the company’s fiscal 2014, income from continuing operations was $621 million, or $3.91 per share, a 22 percent jump from the $498 million collected in fiscal 2013. Operating income was $1.32 billion — $444 million more than in fiscal 2013. Operating margin was up in that time from 6.2 percent to about 10 percent. Free cash flow more than doubled from $288 million to $689 million.
“We’ve taken a lot of costs out of the business,” Lawrie said during a May conference call with analysts. “But we’re not just taking costs out, we’re reinvesting a lot of money — hundreds of millions of dollars, we’re blowing back into our people, in terms of skills, hiring. We’re continuing to move to lower-cost delivery. We’re delivering new offerings. And we’re continuing to restructure.”
None of this has been lost on Wall Street. The company’s stock price is up more than 14 percent year to date, nearly 40 percent from one year ago, and 158 percent since June 2012 — three months after Lawrie came on board. It was trading in the $64 range July 1, and the company’s name has been bandied about as a possible acquisition target (see below).
But experts say CSC should be wary of continued cost-cutting if it wants to keep appealing to investors.
“It is a double-edged sword if management cannot keep their intellectual property — i.e., employees — happy,” said Mike Lewis, managing director of McLean-based The Silverline Group, which advises government services companies. “Unlike other industries, employees with federal contractors can easily leave to become the actual customer or competitor. This should cause investors to care significantly about the internal perception of the workforce. At the end of the day, employees are the assets at these firms and they have options. So it is in a company’s vested interest not to cause too much upheaval.”
And while corporations can craft policies all they want to target employees who are a drag on earnings and hold on to top performers, the effect can be far more sweeping than ever intended, said Gary Burtless, an economist at the Brookings Institution who was previously at the U.S. Labor Department.
“Frightening all workers may encourage your best employees to quit,” he said. “Why is that a sensible strategy?”

Anonymous said...

Thanks for posting that article :-)

It tells us little new information really, most of us knew that the reign of terror is not accidental, it's designed.

The problem historically with anyone controlling bloody purge though is being able to make it stop before it goes too far. Typically control has been lost at that point and what you are left with is far less than you actually wanted.

Anonymous said...

THE ENDS ramp up share price JUSTiFIES THE MEANS do so without compunction or moral judgement.

Anonymous said...

My appraisal also mentioned that I was performing the work of 3 people.

Unfortunately, due to the disorganised way things are run, it feels like those 3 people are Mr. Bean, Mr. Blobby and Frank Spencer

Anonymous said...

All 4 raters will be made redundant in August - September 2014 thus reducing Salary costs and an increased profit

Anonymous said...

Long term these ‘transformative actions’ can prove devastating for the company. Consider that you have an increasingly alienated workforce. Loyalty has been eroded and a significant number of talented and highly skilled employees are or will vacate CSC for other opportunities. Stock holders will not be pleased when they see the company’s internal disintegration result in lost contracts, loosing recompetes and a concomitant degradation in product and service.
The architects of this condition, however, will enjoy very comfortable retirements

Anonymous said...

1) What else would you expect from a "leadership" team composed of these fine individuals? (refer to links below)

2) Mid-level management TOOLS who still think they are on the inside: Please, stop embarrassing yourselves. Please.

3) For the rest of of the CSC peasants: As CSC enters the Self Destruct phase of the transformation, reductions will continue to ensure that CSC's stock price remains competitive and is positioned for maximum executive compensation. There is no hope, and it is time to accept this fact and stop trying to convince yourselves otherwise.


'Misys chief executive could be in line for 1.7m payoff'
http://www.theguardian.com/business/2012/feb/08/misys-chief-mike-lawrie-payout

'CEO who laid off thousands gets $37 million retirement package'
http://www.dailykos.com/story/2011/10/10/1024729/-CEO-who-laid-off-thousands-gets-37-million-retirement-package#

'Misys announces solid results and aggressive cost cutting'
http://www.youtube.com/watch?v=UHOOXbVz4CU

'Setting Misys apart from the IT crowd'
http://www.telegraph.co.uk/finance/newsbysector/2991056/Setting-Misys-apart-from-the-IT-crowd.html

'Gannett CEO: How I doubled my pay and I only had to fire 2400 employees'
http://rturner229.blogspot.com/2011/03/gannett-officials-sharing-burden-of.html

'Times are tough for new Gannett CFO'
http://rturner229.blogspot.com/2010/11/times-are-tough-for-new-gannett-cfo.html

'Shareholder: Are directors artificially propping up GCI's stock at the expense of the company's future?'
http://gannettblog.blogspot.com/2012/05/shareholder-are-directors-artificially.html

'Transforming Employee Engagement?Don?t Ask How, Ask Why'
http://blog.change-logic.com/2012/09/27/transforming-employee-engagement-dont-ask-how-ask-why/

Anonymous said...

My written rating was above and beyond the call of duty. All KRA's surpassed and the majority of performance factors surpassed, yet "met expectation". Way to go....

Anonymous said...

Imagine there would be a 360 degree review from below for upper management? All those delayed decisions to bid on opportunities, invest in products/projects...

Anonymous said...

With his reduction in pay I fear Mr. Lawrie shall never be able to afford a decent wardrobe. Last year he visited our location, surprise not in Falls Church, where CSC has three major programs. He was scheduled to meet with client executive management as well as holding a town hall meeting for employees from all programs. Knowing he had just met with the customer leadership, his manner of dress was appalling. His sport coat was tattered, his shoes needed shining, his shirt was unkempt, and he was without a tie. All the local client management and CSC management, knowing they were meeting with a Fortune 500 company CEO were attired in professional business dress. With nearly 500 local CSC employees anxious to hear their CEO speak about the future of the company, expectations were quickly dashed. It was obvious he had nothing unique to say reverting to a few bullet points with little significance to the assembled group. Everything he said was a rehash of C3 videos management had required all to review. Through my CSC career I have met the CEO of Dun and Bradstreet, Xerox, and Raytheon, two cabinet secretaries, and three former CSC CEOs. They were impressive and you understood how they reached the positions they held.
As a direct result of the failure to reach its goals CSC instituted another gimmick solution to help cook the books for Wall Street’s benefit while increasing the burden bourn by its employees. The short sidedness of this management style is blatantly apparent and yet the board continues to allow the internal privateers to impose edicts as if CSC were a feudal fiefdom. At some point you have to establish a viable business model, pillaging the assets repeatedly for quarterly blips versus sustainability is not a long term business model. Well, perhaps it is if your long term strategy is a handful of years here, then a handful there, followed by another handful elsewhere. Go Mike Go. Please!

Anonymous said...

UK staffing reductions are still ongoing with certain groups having no more information that the initial call some 5 weeks ago (the promise was that the would be an in/out scope call the following week). On the more interesting side, the applications for VR are said to be overwhelming, rumours from the PM community who were supposed to be losing 60 from 240 have been that there were over 120 applications for VR. No VR request numbers from architecture but rumours again said to be much higher than the 30 required. On the subject of the 30, the architecture practice numbers were challenged with the accounts managing to show that the bulk were revenue generating, the numbers were duly scaled back to 20, the US has now stomped on this (do these people have a clue?) and it's back up to 30 again.
On the over subscription of VR it's a sad indictment of the state of CSC that so many want out.
Hopefully the ones that don't get redundancy will find jobs outside CSC and leave of their own accord to really twist the knife.

Anonymous said...

CSC - The End is Nigh

Great headline by a local publication referring to the massive layoffs at Blythewood SC. Link below

http://www.fitsnews.com/2014/07/10/csc-end-nigh/

Anonymous said...

Good riddance, under performers who get 4 ratings should be dismissed. In India people work really hard and long hour.

Anonymous said...

You have grounds for appeal.... DO IT!

Anonymous said...

Some people say you dress to impress, and judging by the above comment it seems that ML does not feel he needs to impress customers or employees. I'll bet he dresses to impress his boss the stock holders.
Either that or he is a natural scruff and his wife/partner has no control over him.

Anonymous said...

Selfish, self centered post: I was laid off in April - new employer in June, went from $121K to 132K and actually performing in my area of expertise, not in lower scale role just to get off the bench.

I was planning on leaving a year ago, was working on resume, but was too loyal. I ignored the corporate shenanigans. Loyal, dedicated, smart, but yet naïve and looked the other way, which backfired with layoff in April. I guess I needed a push (negative one). I went through a grieving process as I enjoyed and grew in my career. Unlike ex-CSC employees and many employed today, I received a bonus (from 1% to 5%) every year of employment (nine) - I never expected one nor did I want one ($108 starting salary). Drove my cost up, which client's didn't want to pay, of course. I was on the bench three times lasting around six months (too much for any company), but with Mike, no (I agree on that one). CSC was good to me until Mike Laurie came along.

If you screw me, I'll come out better, which is displaying with current event - beginning of CSC's destruction and downfall. Goodness always prevails.

Anonymous said...

Well a new personal and career low for me this past week, having been promised a pay rise a number of us have been told that one was submitted but "someone" changed it to zero, but neither our L4 or HR know who did it, this confirmed by the L4 on his townhall call, he has now "gone on sick".

Our L6 line manager telling us we now have two choices, either "put and shut up" or "move somewhere else" if we do not like it.

Anonymous said...

The only thing you have control over is what you do with this information. You can stay and "put and shut up" or "move somewhere else". Seems Mr. L6 gave you some good advice. I would recommend option #2. That is the course I am pursuing.

Anonymous said...

I heard an interesting conversation the other week. A L2 was asked by a peasant on a call if his LOS had had their appraisals forced into the bell curve. This particular lying scumbag said that "he wasn't aware and nobody's grading was adjusted by him". I think that's know as the "Nuremberg defence".

He also had a major back peddling outbreak when he was challenged by the same peasant about how come his first 10 minutes of the call was him saying how stellar CSC's performance was, then later saying that no money was available for pay raises.

I think most of the proles on that call could be heard cheering on mute as David took on goliath.

Anonymous said...

L2 - Jim Smith - came down among the Blythewood, SC peasants today. The peasants had torches and pitch forks and let him know their dissatisfaction. He smiled and said "There, there, my peasants". "Don't worry, I am now doubling your quota and you will now make bricks without straw."

He says to the Peasant, "Make Bricks without straw". The Peasants say, "Make Pyramids without Peasants."

All Hail Smith! All Hail Lawrie!

Anonymous said...

The only way to prevent senior management from enriching themselves at the expenses of the peasants is for the peasants to make a fast exit from the company. Management won't get rich if there are no peasants to do the work.

Anonymous said...

Looks like the unloading has begun!

http://finance.yahoo.com/q/it?s=CSC+Insider+Transactions

Jul 16, 2014 LAWRIE JOHN M
1,900 Direct Sale at $63.06 - $63.38 per share. 120,000

Jul 16, 2014 LAWRIE JOHN M
100 Direct Automatic Sale at $63.39 per share. 6,339

Jul 1, 2014 LAWRIE JOHN M
1,900 Direct Sale at $63.46 - $64.21 per share. 121,000

Jul 1, 2014 LAWRIE JOHN M
100 Direct Automatic Sale at $64.27 per share. 6,426

Jun 23, 2014 LAWRIE JOHN M
100 Direct Automatic Sale at $64.14 per share. 6,414

Jun 23, 2014 LAWRIE JOHN M
1,900 Direct Sale at $63.88 - $64.13 per share. 122,000

Anonymous said...

Interesting.

Lawrie has to give notice to the SEC of any CSC stock transaction he plans to make. I think it is 6 months notice. Once notice has been given, he must make the transaction, irrespective of what price the stock is at on the day he elected to trade. And he can only trade in certain given, and quite restricted time windows.

This data says that back in December 2013 and January 2014 he gave notice three times that he would sell 2000 shares each time. It would be wrong to think he made 3 sudden sales in June and July 2014 thinking the stock was about to go down. But he clearly planned these sales some time ago.

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

I am isolated and suffering mobbing at CSC. I opened a case with Ethics and they forwarded the case to HR. Following CSC actual ethics HR does not reply to me after two months waiting. CSC wants to raise its share price by saving on layoff compensations by forcing people to quit. Illegal and unethical way to get a few millions mr ML. If you want to reduce the head count remember you can't ignore laws!

Anonymous said...

As well as being isolated and suffering you are also very naive.

How you could think that lodging a complaint with Ethics and HR would lead to anything other than more trouble for you is beyond me. Ethics Dept is there so that Lawrie can tick boxes on Corporate responsibility reporting requirements, not to help employees. HR is there to do what Lawrie tells them to do, not to help employees.

You have been reading too many CSC Corporate Manuals and watching too many CSC Corporate propaganda videos and webcasts. Grow up, get yourself a new job and stop believing in Father Christmas.

Anonymous said...

So good to see that CSC has transformed in the CIOs first 100 days. Wow!

http://www.forbes.com/sites/peterhigh/2014/07/21/doug-tracy-transforms-csc-it-in-his-first-100-days-and-beyond/

Anonymous said...

Well put .)

Anonymous said...

The contributor left out his middle name "is". I think if you asked 100 CSC'ers what Mr Tracy has transformed 99 would give you blank stares. Last time i checked we still used Lotus Notes - how bout starting with that.

Anonymous said...

From the Forbes article 'Part of our efforts consists of leveraging the centers of excellence in India to a greater extent as well.'

Nothing transformative there.

Anonymous said...

We are so lucky Doug Tracy arrived in the nick of time to save CSC. How did the company survive all these years without him? And what an incredible mess he found when he arrived. And what had the incompetents who had been in the CIO function before him been doing to create such a mess?

A bit more respect, humility and self-doubt would help you do a better job, Mr Tracy. Come back in 3 years (if you last that long) and tell us what you have actually achieved. In the meantime, please spare us the self-publicity.



Anonymous said...

The point that has been missed by those in charge is that in treating employees in the appalling manner they have, as opposed to with dignity, sensitivity and respect/thanks for in some cases many years of loyal service, they have ensured that those leaving do so with bitterness/anger, and as a consequence those that are left feel no loyalty and no longer believe/trust in the leadership .
Many leavers are re employed with current CSC clients, many have been snapped up by competitors(nothing like handing to the opposition your best people on a plate as has so often been the case in the UK-HP are ecstatic as are other major clients!) -and CSC can hardly expect support from an embittered ex employee now operating within a client company when bids, rebids come around. ie you reap what you sow.
Many clients/potential clients have expressed a preference not to work with CSC, in no small part due to the ethics (lack of)-after all as one client said, if that is how CSC treats its employees, what on earth can we expect as a client?
What is so sad is that it need not have been this way-it could have been handled so much better , resulting in ex employees supporting CSC from afar, and those that were left enthused to continue going the extra mile and feeling proud to work for a company that had ensured leavers were fully supported and left with dignity etc.
As it is people now do the absolute minimum they can get away with-feeling CSC has destroyed their trust so they owe no loyalty to CSC .
No one ever doubted the need for changes to be made, or the fact redundancies would be needed, but it is the appalling manner of handling the situation that has scarred CSC and its employees permanently-and the fall out from this mushroom cloud will be felt by CSC for years to come.
It is not rocket science to understand how it could have all been so differently handled with positive outcomes for all-CSC, current employees, and past employees alike.

Anonymous said...

"Dick" Tracy's idea sounds great doesn't it? Shame its not actually great at all. He's outsourced his IT function but without the traditional advantage of outsourced IT - the bit where the outsourcer pays you penalties for failure. Instead of that he's mired in pointless "contract management" with a "supplier" who doesn't have the staff any more to support their "client". Not to mention that the "client" probably can't actually make any decisions and if it does then 5 minutes later its decided something else.

All of the time meanwhile, the number of people in Dick's team seems to grow and grow and grow...

I think we can paraphrase Churchill to describe "Applied Technology".... "Never in the field of IT service has so little been delivered by so many for so much"

Not that it matters really I guess, its just another fake front for a company that's just hollowing itself out. Just some decoy stuff to draw the suckers in whilst the fat cats make their exit.

Anonymous said...

After being in scope for redundancy five times in two years, constant requests, nay demands, to take 5 days vacation, being treated like a child, lied to, no pay reviews, absolutely ridiculous bell curve appraisal system, likelihood of being moved to a low cost "pod", training requests denied, dubious management strategy and to cap it all when I see the remuneration the L1's are getting for basically hollowing out what was once a great company just to prop up the share price, I feel a little aggrieved to say the least.
Hurry up and make me redundant (I have too many years in to just walk away !) so I can move on to a company that actually values and respects its employees.
I have no loyalaty to CSC anymore, they have succeeded in beating it out of me but I wont give them the satisfaction of walking. Until then I'll do my utmost to do as little as possible for as long as possible, as they have done to me.

Anonymous said...

After 9 years with CSC UK I had also been waiting 5 years for redundancy and have been in scope 5 times but always been told not to bother applying as I was an SME on several critical applications. Despite training may offshore staff to pickup the work (but that's another story) and being told from day one that offshoring was the strategy for our account. So last year I moved nearer London away from the locality of my job ready to either get VR or be moved to another CSC account. As CSC were a littled worried about me leaving the actually gave me a 1% pay rise! However, after exactly 12 month nothing had happened and my CV went out and in couple of weeks I had a job offer. I took the risk and saved CSC the expense redundancy payments which was around 20 odd month salary. Obviously I jumped to a much better paid job in London to compensate a little for the loss of the payoff. Anyway 6 months on I hear that many of the managers at my old account have got VR but the SME's and technical guys have been refused due to the lack of resource and also that some stuff still can't be offshored due to various legal reasons. So I would have still been stuck in CSC anther 2-3 year waiting for a payoff. Something to think about here is as you get older you can find it harded to get another job, CSC may find ways of reducing the current Redundancy deals on accounts like mine where you get one month per year. So waiting for a payoff could back fire in the long run so think hard about how long some of you guys may need to wait. I'm now working in a newish small Finance IT company and although it can be hard work and less organised than a bigger company, you have the potential to get rewarded such as decent payrise, bonuses training and most of all not feeling like you are an expense to the company and have not future.

Anonymous said...

Rather than doing nothing, I would recommend that you begin training yourself on new technologies (or new to you). No matter how broad a technical background you have, there must be areas in which you could learn. Since you're not putting time into CSC (don't blame you) - put time into yourself.

Anonymous said...

As a CSC employee who is entering my 34th year with the company, I'm constantly struck by how far down the company has sunk in its relations with its employees. When I started in CSC System Sciences Division (NASA work) the CSC motto was "Our employees are our most important asset". Makes sense since we sell our services, not products. In addition, Division president, Arturo Silverstrini had the most employee-friendly AND business-savvy policy I've ever seen. When we lost a contract Silverstrini's policy was to put those employees w/o a charge number on overhead until we won another contract, thus garnering 100% employee loyalty. In almost all cases, the company who took our contract had a statement that they would re-employ 30-40% of the previous contractor's employees. No CSC'er went over. So that contractor couldn't meet the requirements of the contract, and the gov't was forced to hand the contract back to CSC!

Now, though, CSC is in a race to the bottom. I spoke to Donna Lesch, HR, and she said in their survey, companies were only giving 2.7% merit increases. But CSC only gave 2%, and only to those who earned an Exceeds Expectations rating. Formerly, employees who earned an Exceeds were rewarded with 9-11% increases.

Time to take up the pitchforks and torches and throw the 1% crowd to the lions!

Anonymous said...

The company offered a "Million Dollar" challenge in FY!4 which they haven't paid yet. The latest excuse is the results are being "audited" which is weird since we're 5 months into FY15 and we've already reported revenue for Fy14. Rumor has it that several people are discussing this issue with attorneys and there may be a lawsuit in the works.

Anonymous said...

I've been lurking on CSC's "watercooler" blog. As others have pondered, and is glaringly obvious to most of us, NO ONE from senior HR (e.g., Donna Lesch, Donna Diedrich) nor senior mgmt (e.g., Mike Lawrie, Dave Zolet) are going to respond to any "regular employee". Upper mgmt ONLY cares about making large amounts of money in the short term, and couldn't care less about work ethic, honesty, loyalty, nor building the business.

At my 25 year anniversary banquet 10 years ago (yes, CSC used to care about employees), the president of NPS at the time made a "joke" asking why on earth folks would stay with a company for 25+ years; people should jump ship every few years, leaving corpses and collapsed companies behind. It didn’t go over so well; you could have heard a pin drop.

I talked to both Donna Lesch (CSC HR head) and Donna Diedrich (NPS HR head) a few weeks ago regarding the zero percent merit increase this year, and both blamed the employees for "not meeting CSC's internal goals and numbers", even though neither would tell me what the goals and numbers actually were. We billable employees are the ones who bring in revenue and profit to CSC, while senior mgmt blows all of the profit by flying around the world, along with their entourage, wasting money while living the good life. And the employees get nuthin' but the back of the hand from these money-wasters!

As a GPARS matrix manager, every single one of my people earned a Meets Expectations or higher, yet only the very few who earned Exceeds Expectations got a paltry slap-in-the-face 2%. Meanwhile senior management received huge sums while not meeting their revenue nor operating income targets.

A friend of mine sent some interesting notes she took of the CEO's talk at his visit to 42Six last week:
"He bragged about his yacht, how he had his photo taken with the king of UAE, and he will continue to cut costs vigorously until the stock doubles from it's current price. He said our costs are too high, and he intends to bring in more foreign workers at half the cost of Americans". From this, I glean that we still have some time before they sell CSC, since they want to double the stock. Of course when CSC gets sold downriver, the buyer will almost certainly refuse to sponsor CSC's pension plan... Sure is great to be in the 1%, eh?

Anonymous said...

A lot of us are older employees (>50) who will have a hard time finding jobs with similar compensation, especially when we'll be competing with recent college grads and, in my own area of expertise, with a growing overseas presence.

Anonymous said...

Whilst there is truth in the article around CSC's tactics, it also implies that CSC is doing what is necessary. This is utterly wrong, and couldn't be further from the truth. CSC has pursued an entirely negative system of attrition and constriction, disguised with some slick words without substance, in order to prop up share prices.
Strategy, evolution and even revolution do not come from destruction & disregard of your key asset and intellectual property - your employees.
The facts I am sure will show that CSC has in fact lost a large proportion of it's high achievers, or pushed many of them into burnout where they've either lost motivation/morale and become average performers, or they've left.
Why do I think this? Because high achievers understand how to motivate themselves and those around them. CSC doesn't, which is why morale has collapsed and few people have anything positive to say about the so-called turnaround.

Anonymous said...

Bang on the money, and a sad indictment of large parts of corporate America. What ever happened to the creativity and innovation? It seems many of the industry giants have become overrun and managed by bean-counters and short-termist managers.
What ever happened to the CEOs who were visionary & motivational leaders? Did they all pass to another realm with the late Steve Jobs (RIP)?

Anonymous said...

CSC CEO decided that it was easier to become modern day carpetbaggers for the board. Why become a visionary, if a scorched enterprise approach makes you millions?

Anonymous said...

Don't forget that you can sell your vacation back...at 40% of what you earned!
And even if you "exceed expectations", you probably won't get a raise.