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Technology Stocks : Compaq

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To: rupert1 who wrote (59826)4/25/1999 12:56:00 AM
From: Captain Jack  Read Replies (1) of 97611
 
Victor-- you asked "You are not proposing that DELL is catching up with COMPAQ in services or high
end, are you?" I am have had to use the service dept of both and find them outstanding. The article in last weeks federal computer magazine ran an article on several high end products. The "best" two were CPQ and DELL. The specs were extremely close. DELL cost approximately 10% less. These were not advertisements but mfg suggested price.

It is known the European region will take longer. From a recent post from rudedog and others it seems the 17K may only cover those that have duplicate positions in the organization that could be absorbed. The "multiple" layers of mgmt may be a drop in the buckey also. Another reference of VPs being assigned under Directors shows additional fat with titles. The comments rude cited from cpq employees indicate people are on the rolls that are not needed. The dual HR and payrolls most likely have some unidentifiable as yet.

I have found nearly every manager wants his very own culture and as many subordinates as possible. Not always the minimum needed to do the job efficiently. Most of them know their employees and possibly their families. No one enjoys handing out pink slips and most will attempt to justify keeping "their people". Usually an outsider can listen to the employees as rude did and quickly spot the nonessential people also. In an organization the size of cpq it is easy for people to be lost in the system. The larger each facility and dept the easier it is. I have seen mid level mgrs have a full time secretary that was not required and a receptionist also,,, at times once that smoke cleared there was little PRODUCTIVE work for that mgr.

I am not an expert on CPQ or the culture,, far from it, but I do know how payrolls grow--- and anytime one large organization brings on another large organization initial cuts are made. Most of the time a second and third cut are required. A strong mid and upper level of mgmt can weed those out quickly and easily. It is much faster and dramatic if an outside person/team is brought in as these managers find it easier to terminate employees if they can pass the heat off,,, that practice does not effect inter organization transfers coming to them later since "they" never eliminated anyone even if they provided the list. It must be remembered some of those levels may need trimmed also and those attempting to keep as many people as possible either are understaffed, correctly staffed, or may be looking to justify THEIR position... I am not an expert on staffing and cutting but have "been there and done that" numerous times in many facilities... and it is never fast and needs to be ongoing. Labor laws and contractual agreements hinder the process most of the time but organizations this size can accomplish a lot quickly through attrician alone at times.

The "specialists" and "professional" staffs are often very valuable and a resource that can be looked at as an investment for the future so that catagory often is nurtured by design.

If 17K was the magic number BEFORE my guess is there is a whole lot more now that they are there...
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