Reply to post: Profit before customer satisfaction - not a recipe for long term growth

DXC execs to investors: It's say-on-pay time. Give us a bump, would you?

Anonymous Coward
Anonymous Coward

Profit before customer satisfaction - not a recipe for long term growth

How on earth do DXC think the company will perform long term if the exec's have 80% of bonus tied to financial targets and only 20% on customer satisfaction? The end result of this will be when there is a choice of meeting a financial target or meeting client expectations the choice will be the financial target. Not going to meet margin target, then cut headcount on an existing contract boosting the margin, with a bit of luck the customer won't notice and the cost for missing any SLA's won't be greater than the saving. Seen this done multiple times, looks great until the renewal is due and the client (who by this time is aware that headcount has been cut and the service has been reduced), goes to competitive rebid and DXC loses scope if not the contract. It also impacts on new business, when the prospect checks with their peers as to the quality of service, doesn't come out good when they aren't delivering on the service.

The goals should have been 80% on customer satisfaction, existing customers who are satisfied will buy more from you and will be a good reference for new business enabling you to grow your business.

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