So an outside consulting firm makes restructuring and headcount reduction recommendations based on simple, math-based formulas.
The math looks good on paper, but it’s near-sighted. The intangible costs of cutting talent and tribal knowledge, and combining workloads from 2-3 personnel onto one (‘do more with less’), are immense.
When Customer confidence is lost, they also stop being a reference. The loss multiplies.
OPERATIONAL GLITCH
The Amateur View: "The customer missed the SLA by 40 minutes."
The Professional View: “The customer realized the new team doesn’t understand their architecture. Trust is broken.”
CUSTOMER HEALTH
The Amateur View: “They haven’t cancelled their contract”.
The Professional View: “They refuse to expand their spend and are actively looking for an exit strategy from Dell.”
VALUE PROPOSITION
The Amateur View: “Dell is delivering service at a 30% savings per head”
The Professional View: “We have commoditized our brand. We can no longer demand premium pricing”.
The list of outcomes goes on…