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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

2819.0. "Digital Consulting=Business Unit" by DPDMAI::SODERSTROM (Bring on the Competition!) Fri Dec 17 1993 17:01

    Just saw a note that Digital Consulting is now a Business Unit.
    DC will have it's own P&L, etc.
    
    Does anyone have further information and will this help us out?
    
    
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2819.1HAAG::HAAGRode hard. Put up wet.Fri Dec 17 1993 18:026
    heard back in october from nice MSO based folks that this was high on
    Gresh's list of priorities. So I wouldn't be all that surprised to hear
    if it's true. Also, easier to spin it off if the powers that be wish to
    do so.
    
    gene.
2819.2CBUs, another failed organizational strategySMAUG::GARRODFrom VMS -> NT, Unix a future page from historyFri Dec 17 1993 18:5728
    About time too.
    
    Expect the 5 customer based CBUs (the ones under Lucente) to gradually
    become just a memory.
    
    CBUs - Digital's FY93 failed organizational strategy. Following right on
    from NMS which was Digital's FY92 failed organizational strategy.
    
    The key profit centers are now:
    
    
    Lucente	- Direct Sales of Product
    Brebach	- Digital Consulting
    Cabrinetti	- Channels for Digital Product
    Pessatorri	- PCs
    Christ	- Storage
    MCS		- After Sales Service
    
    The only good thing that seemed to come out of the CBU structure was
    that it realligned named accounts so that one account rep covered
    accounts that were in similar businesses.
    
    Hopefully a lot of the industry based marketing groups that were part
    of the CBUs sitting in Corporate have been decimated by TFSOing by now.
    
    I wonder what those 5 VPs manage now besides other VPs.
    
    Dave
2819.3GIDDAY::QUODLINGSat Dec 18 1993 05:438
    Boy, next the Consulting BU will be selling hardware ....
    
    I know, why don't we bring back product lines....
    
    :-)
    
    q
    
2819.4Less matrix nets - the better.BONNET::WLODEKNetwork pathologist.Sat Dec 18 1993 08:5615
    So, this is the next year's organisation :

    	VSLT	( the 5 VPs from the previous note, Very Senior LT)
    	SLT
    	VPP	( VP pack - hundreds )
    	5 	levels ( "basically" 5 or basically "5")
    	you and me 

    	On a serious note - it does make a lot of sense , only VPP should
    	have a better name like , JVPT ( Jurassic VP team) , sort of a hint.

    	Have fun holidays,

    			Mr. X-ray
2819.5Makes Senses to Me!ODIXIE::GELINEAUSat Dec 18 1993 16:0911
    
    The only way DCS will succeed is to strike it's own identity in the
    market, and to have a P&L so that they can begin to measure against
    their plans.
    
    Also, the sales of product and the sale of consulting services are two
    different businesses.  So Lucente is focused on what he does best, and
    the reason we brought on Gresh was to become a contender in systems
    integration and consulting.
    
    my .02!
2819.6removes a previous conflictCARAFE::GOLDSTEINGlobal Village IdiotSun Dec 19 1993 23:448
    This conference has had previous notes indicating that Mr. Lucente felt
    that DC should stress the sale of Digital kit over pure SI.  In the
    past, DC reported to the CBU managers, who reported to Lucente.
    
    Now, Brebach is peer to Lucente, not subject to his budgets, so DC can
    position itself to customers as more than just another Channel for
    Digital's kit.  Given the profitability of true consulting and SI work
    (i.e., labor markups), this should be good news.
2819.7A good thingGLDOA::KATZFollow your conscienceMon Dec 20 1993 07:418
    This could really be a good thing. If DC has its own sales
    force, and it looks like it will, then DC controls its
    own future. We have needed individuals that would concentrate
    on the consulting business specifically, as opposed to just
    pushing boxes. Its time for the DC's to sink or swim on
    their own.
    
    			-Jim
2819.8Merry Christmas to you, too....MR4DEC::DTOMPKINSMon Dec 20 1993 09:0334
    Re: 2819.2
    
    Dave,
    
    As a member of the CPT CBU, I found your comments about the CBU
    structure to be quite insensitive.  I would be the first to acknowledge
    that we didn't achieve our goals, but it's important to understand why.
    
    The CBUs were created out of existing Marketing groups, which were
    magically given full responsibility for the company's P&L.  At the same
    time, our budgets started going through a series of ongoing cuts. 
    Let's see....you give a group a tenfold increase in
    responsibility...then immediately start cutting its resources...I wonder 
    what's going to happen?
    
    My point is that we were never given the tools we needed to be
    successful.  I only hope that the new P&L groups, which do make good
    business sense, do not suffer a similar fate.  Any organizational
    structure can only achieve its goals if it has the full support of the
    company....we simply didn't.
    
    As for your desire that the CBU's be "decimated by TFSOing", I can
    assure you that your wish is coming true.  I have seen any number of
    competent, dedicated co-workers (some of whom I hired myself) leaving the 
    company, some voluntarily and some not. I expect that this will
    continue, much to the detriment of Digital.
    
    In the same spirit as your comment, I can only wish that you and your
    group have the opportunity to take part in this activity in 1994 as
    well.
    
    Merry Christmas to you, Dave...
    
    Dennis Tompkins
2819.9The actual announcementSNAZZY::DUANESend lawyers, guns & moneyMon Dec 20 1993 10:4887
This is the announcement memo.  I am assuming that it is O.K. to post it here
since it says it is to be "widely distributed".

re: .6 & .7
Note that toward the middle of the announcemen the memo says that Digital
Consulting will not have its own sales force, but will be relying on the
existing one.


d



Multitudinous forwards removed...




From:	NAME: Bob Palmer @MLO               
	FUNC: PRESIDENT AND CEO               
	TEL: 223-6600                         <PALMER.BOB AT PNDVUEA1 at MLMAIL at MLO>
Date:	17-Dec-1993
Posted-date: 17-Dec-1993
Precedence: 1
Subject: Digital Consulting Announcement                                        1
To:     See Below

****************************************************************************
        THIS MEMO IS FROM BOB PALMER, GRESHAM BREBACH, AND ED LUCENTE
****************************************************************************

         **PLEASE DISTRIBUTE WIDELY THROUGHOUT YOUR ORGANIZATIONS**

As Digital continues its evolution to focus more closely on customer needs, 
we are pleased to formally announce that, effective immediately, Digital 
Consulting will function as an operational business unit of the corporation.  

This change will result in many benefits to Digital and to our clients:

    Profits.  Increased profits through improved resource utilization 
    and deployment, and closer control of SG&A expenses.

    Growth.  Market growth through business-practice driven integration 
    and balancing of both horizontal and vertical solutions.

    Image.  Visible demonstration of Digital's commitment to the 
    consulting business.

    Quality.  Improved quality of delivery through increased discipline, 
    standard policies, and common scope of practice.  

    Synergy.  Broader acceptance as a world-class provider of both 
    solutions and products.

    Motivation.  Increased ability to attract, develop, and motivate 
    exceptional people.

Digital Consulting will be managed and measured as a primary P&L of the 
corporation -- revenue, operating profit, and asset management -- and will 
set services pricing and terms and conditions for its business practices.  
Digital Consulting will be a funding source for resources and investments in 
support of its business plan.  Digital Consulting will not have a separate 
"sales force."  Digital Account Managers will continue to manage the overall 
strategy, direction, and relationships in our accounts.  To support them, 
Digital Consulting will provide Consulting Services Principals and Engagement 
Managers to help develop and achieve the account plan.

Digital Consulting resources in all geographies will report directly into 
Digital Consulting, and the managers will sit on and be active members of the 
territory and area management teams.

This evolution presents tremendous opportunities for Digital to increase the 
value we bring to our customers and to achieve best-in-class competitive 
performance.  In addition to delivering value to our clients we believe there 
is considerable synergy between the activities of Digital Consulting and the 
activities of Digital's other businesses.  We believe Digital Consulting's 
presence in an account can extend significantly our relationships with those 
customers and strengthen our role as a strategic business partner.

Our challenge and our commitment is to do everything possible to realize and 
maximize the value of these synergies to Digital overall.  

We know you will provide your full support during this transformation.

To Distribution List: deleted


2819.10Official wordsRDGENG::DEARJay DearMon Dec 20 1993 10:4972
	The official word - but _no_ separate sales force for DC.

	Jay

										                                        Date:     17-Dec-1993 03:09pmGMT
                                        From:     Bob Palmer @MLO               
                                                  PALMER.BOB AT PNDVUEA1 at MLMAIL at MLO
                                        Dept:     PRESIDENT AND CEO
                                        Tel No:   223-6600

TO: See Below

Subject: Digital Consulting Announcement                                        1

****************************************************************************
        THIS MEMO IS FROM BOB PALMER, GRESHAM BREBACH, AND ED LUCENTE
****************************************************************************

         **PLEASE DISTRIBUTE WIDELY THROUGHOUT YOUR ORGANIZATIONS**

As Digital continues its evolution to focus more closely on customer needs, 
we are pleased to formally announce that, effective immediately, Digital 
Consulting will function as an operational business unit of the corporation.  

This change will result in many benefits to Digital and to our clients:

    Profits.  Increased profits through improved resource utilization 
    and deployment, and closer control of SG&A expenses.

    Growth.  Market growth through business-practice driven integration 
    and balancing of both horizontal and vertical solutions.

    Image.  Visible demonstration of Digital's commitment to the 
    consulting business.

    Quality.  Improved quality of delivery through increased discipline, 
    standard policies, and common scope of practice.  

    Synergy.  Broader acceptance as a world-class provider of both 
    solutions and products.

    Motivation.  Increased ability to attract, develop, and motivate 
    exceptional people.

Digital Consulting will be managed and measured as a primary P&L of the 
corporation -- revenue, operating profit, and asset management -- and will 
set services pricing and terms and conditions for its business practices.  
Digital Consulting will be a funding source for resources and investments in 
support of its business plan.  Digital Consulting will not have a separate 
"sales force."  Digital Account Managers will continue to manage the overall 
strategy, direction, and relationships in our accounts.  To support them, 
Digital Consulting will provide Consulting Services Principals and Engagement 
Managers to help develop and achieve the account plan.

Digital Consulting resources in all geographies will report directly into 
Digital Consulting, and the managers will sit on and be active members of the 
territory and area management teams.

This evolution presents tremendous opportunities for Digital to increase the 
value we bring to our customers and to achieve best-in-class competitive 
performance.  In addition to delivering value to our clients we believe there 
is considerable synergy between the activities of Digital Consulting and the 
activities of Digital's other businesses.  We believe Digital Consulting's 
presence in an account can extend significantly our relationships with those 
customers and strengthen our role as a strategic business partner.

Our challenge and our commitment is to do everything possible to realize and 
maximize the value of these synergies to Digital overall.  

We know you will provide your full support during this transformation.

2819.11hold my tongue/fingers36417::CHERSONthe door goes on the rightTue Dec 21 1993 15:1812
         <<< Note 2819.10 by RDGENG::DEAR "Jay Dear" >>>
                              -< Official words >-


	>The official word - but _no_ separate sales force for DC.
    
    I'm glad somebody took note of this.  Well I'll hold my opinion (which you
    can find in another note), and see how this will work out for us.  We
    have the consulting talent, what we desparately is good business
    development.
    
    /d.c.
2819.12KAOU93::HOOPERWed Dec 22 1993 13:296
    
    	DC (aka SISS, aka PSS, aka SWS) has had its own product lines and
    	its own P&L and measured to contribution margin for years. Prod-
    	ucts and Services and Consulting are the 3 P&Ls in the company.
    	There are no others.  Life continues as before.
    
2819.13QuestionGUCCI::HERBNew Personal Name coming soon!Wed Dec 22 1993 23:357
    >MCS         - After Sales Service
                   ^^^^^^^^^^^
    
    Does this imply that MCS will NOT have their own sales people
    (anymore)? There's a lot of confusion/contention because of the
    separate goaling that causes customer dissatisfaction because of the
    metrics.
2819.14no relation36417::CHERSONthe door goes on the rightThu Dec 23 1993 09:194
    What's MCS have to do with Digital Consulting (other than thinking
    they're "competitors"...)?
    
    /d.c.
2819.15GUCCI::HERBNew Personal Name coming soon!Thu Dec 23 1993 09:557
    >    What's MCS have to do with Digital Consulting (other than thinking
    >    they're "competitors"...)?
    
    It's not MCS per se, it's the point emphasized in the DC announcement
    that there would NOT be a separate sales force. My question is whether
    the wisdom behind that decision for DC will apply to MCS.
    
2819.16there is no separate sales force36417::CHERSONthe door goes on the rightThu Dec 23 1993 12:085
    I am not aware of a separate sales force for MCS or other
    organizations.  As far as I know Digital has only one sales force. 
    Your local account manager can sell MCS, DC, or any other services.
    
    /d.c.
2819.17POCUS::OHARAReverend MiddlewareThu Dec 23 1993 12:468
>>    I am not aware of a separate sales force for MCS or other
>>    organizations.  As far as I know Digital has only one sales force. 
>>    Your local account manager can sell MCS, DC, or any other services.
  
Not true, at least here in NY.  There are separate sales "forces" associated
with the CBU's, MCS and specialized areas such as PC's and workstations.  There
has been confusion as to who sells what directly and who "shadows".  
2819.18Yes, butGUCCI::HERBNew Personal Name coming soon!Thu Dec 23 1993 13:495
    >>    Your local account manager can sell MCS, DC, or any other
    services.
    
    ...the account manager doesn't receive sales credit (i.e., 20% of the
    paycheck).
2819.19it's ok for "things"36417::CHERSONthe door goes on the rightThu Dec 23 1993 14:159
>Not true, at least here in NY.  There are separate sales "forces" associated
>with the CBU's, MCS and specialized areas such as PC's and workstations.  There
>has been confusion as to who sells what directly and who "shadows".  
    
    So, it's ok to have separate sales forces to sell "things", but not
    consulting expertise?  Shadowing should have been phased out long ago,
    it's pure BS.
    
    /d.c.
2819.20DC Sales Force: Live Free or Die!ANGLIN::ROGERSSometimes you just gotta play hurtWed Jan 19 1994 11:3514
    re:  -1
    
    I believe DC should have its own separate sales force.  The only way
    this would work, however, would be if they were a separate company. 
    Their goals and metrics often drive them to behavior which ignores the
    importance of long-term customer relationships.
    
    Shadowing, I have come to believe, is a necessary evil.  It prevents
    behavior that is even more destructive than the occasional parasitic
    suckerfish that we encounter.  Shadowing is, after all, an artificial
    construct.  If you allow shadowing, you just up the budget by some
    degree to compensate for double counting.  I have run into many
    situations where it is the only logical way to encourage and recognize
    teamwork.