Re[2]: market intelligence -- MIDRANGE-L


     Dean, 
     You're right, you're right, you're right. I've almost given up on 
     such things as fair compensation, employee training, etc. I've been 
     a midranger for 12+ years, and NEVER ONCE sent for training, 
     conferences, or whatever. I'm single, and have routinely been 
     offered less pay than my married counterparts, even when they're 
     relative novices on midrange system. I've been hired for full-time 
     positions in far-away cities, moved, only to be laid off six months 
     later after we put out the firecalls. I've been lured into jobs 
     then left holding the bag when ALL the other programmers left. Most 
     of the problems I've faced in my "career" ( ;-/ ) have been 
     directly tied to greed and a desire to take advantage of the 
     disadvantaged.....
     
     Maybe I need to get out of Texas.... (BG)
     eric.delong@pmsi-services.com


______________________________ Reply Separator _________________________________
Actually, this is fairly common.  It's also why I have 8 companies on my 18+
year resume', only three of which are still in business (among the survivors,
one was my foray into the "private sector", another is a consulting company
which no longer has any "associates", and the third is ESC which is still
going strong after nearly 3 years).  My last "real" job had new management
scrambling to hold the thing together -- we had a good team, but old
management had squandered the money.  In the latter case, potential financiers
looked at us with a blank stare, as they had _NEVER_ before seen a computer
consulting group with a five year plan.  Old obligations ultimately put the
company under despite our best efforts.  As a cautionary tale, I'll present
the following "top ten things to do as a consulting firm" and the reason my
first five consultancies went under:

Top Ten Things Consultancies Should Do:

10.  Don't even bother to try if you cannot afford current technology and
education time for in-house staff.
9.  Never take a "fixed bid" contract unless you take your best estimate,
double it, and add 25% to the total.
8.  Never pursue a project in which you will do less than "break even" for
prestige.
7.  Provide an environment in which your employees can be heard.
6.  Listen to your employees.
5.  Never take on a project that, you know in your heart, you can't pull off.
4.  Ensure customer sat, customer sat, and finally, customer sat.
3.  Be aware of your market and don't, under any circumstances, cut your
rates.
2.  Hire good people and pay them appropriately.

and the number one thing consultancies should do...

1.  Invest, rather than become obsessed with, the money.

Now, in reverse order, the reason that consultancies with which I have been
involved have failed (omitting the "private sector" job and ESC):

6.  Second incarnation of former IBM agent firm, lost confidence of employees,
panicked when employees were out of work and cut rates below ability to
support expenses, having put no money back from the "good times".  Two
locations, 20+ employees.
5.  Former IBM agent firm, lost focus when agent program fell apart, owner
spent most profits on personal items/salary, supporting unprofitable software
purchased from a major provider.  Also sued everyone that comitted a
"perceived" slight.  Two locations, 30+ employees.
4.  IBM Business Partner, fell apart when owner let personal problems
interfere with business.  Owner refused to cut her salary while doing the same
for everyone else.  Tried to diversify into areas in which company had no
reputation.  One location, 7 employees.
3.  Company owned in majority by person that had no idea about how to run a
computer company.  Owner sent self to "prestige" technical conferences at
great expense, sent technical employees to conferences in undesirable areas
which were cheaper and also had less participation by knowledgeable
persons/vendors.  (eg., owner went to Mexico City, Honolulu, and Hong Kong
while employees went to Oconomowok WI, SLC Utah, and KC MI).  Owner returned
with no knowledge from conferences, as he spent most of his time on the golf
course.  One location, 5 employees.
2.  Company sought additional owners due to President's inability to go
without a (substantial) paycheck during two recessions, despite the fact that
said owner didn't own a home or have substantial revolving credit.  Ended up
being absorbed under item 3.  Company formed from former employees of 1.  One
location, 5 employees.
1.  Company that got hacked at DEC because DEC would compete directly with
them on government contracts.  Changed to platform under 2 and 3.  Officers
were paying themselves very well, while technical staff got the proverbial
"jack".  Company fell apart when president died of a heart attack while duck
hunting at age 38, and banks yanked all lines of credit.  One location, 10
employees.

In case you didn't notice a theme above, it was greed.  People refusing to pay
people decent wages, provide decent benefits, or pay for training because all
they saw was the $ being brought in.  Companies that didn't put back for the
bad times, and did not provide a future for their employees.  All folded, and
all deserved to.  With the exception of the one where the boss went nuts over
personal issues (and others have seen this plenty in other industries), the
big thing seems to be setting the money aside for necessary education and
support during "slow periods".  Save your money, compensate your employees,
provide education, and turn down accounts that want your services for nothing.
In the latter instance, you didn't really _NEED_ the business.  Good luck with
your consultancy...

Regards!

Dean Asmussen
Enterprise Systems Consulting, Inc.
Fuquay-Varina, NC  USA
E-Mail:  DAsmussen@aol.com

"A man can fail many times, but he is not a failure until he begins to blame
somebody else." -- John Burroughs
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