News and Information for Managers at GE Information Services Company Vol

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News and Information for Managers at GE Information Services Company Vol News and Information for Managers at GE Information Services Company Vol. 11, No. 1 Jan. 31, 1986 How one GEISCO team "...GESCO is extremely satisfied with the job GEISCO did in installed a neMrk sizing and install ing the network. Additionally, we are pleased and made a friend with the ongoing support we receive.. "For the record, GEISCO did what GESCO now knows we could have never done. Obviously, all of the GEISCO players should be complimented on their contribution of effort but certainly, Phil, your captaining this activity, in my opinion, is a principal reason that GESCO received a truly professional job. I only wish we could have received ha1 f as much from our hardware vendor.. ." Frank Bi11 one, Manager of GE Supply Co. (GESCO) , wrote the preceding words to Phil Poe, Manager of Telecomnunication Products, Product Assurance. It was Poe who managed the project to provide GESCO with network services for their transition from MARK I11 Service using MARKLINK terminals to in-house IBM. Other vendors were involved. Arthur Andersen won the contract for application support, IBM for mainframe hardware and software, and GEISCO to provide the SNA network development, installation, and subsequent management. Of particularly significance is that GE Information Services Co. was a dark horse for the network contract, as GESCO had been less than enthusiastic about GEFXD in the past. In April 1985, with the restructuring of GE Information Services Company just around the corner, Poe accepted the chall enge to manage the project to design, determine topology, install and oberate for GESCO the--- IBM SNA network (referred to as the "bluen network), connecting more than 2000 terminals and ~rintersat 150 locations to their host -tern in grldgeport, conn. I "We knew from the start that Frank Billone is a strong, demanding manager," Poe said. "In his environment of a low-margin, funCtiona1 warehouse business, he has to be. "Then, from meetings with GESCO, we determined that their's was not a sophisticated IBM shop," Poe said. "Most of their people had MARK I11 user backgrounds, so they needed strong IBM-based technical support and consultation as a GE partner. If we had Proprietary information -for internal use only Poe's team of some 20 project leaders, principally from Technology Operations, but also from other segments of GEISCO such as Finance and Accounting, spent two days in April 1985 with the GESCO staff to determine what the client wanted, refine the requi refllents process, and establ ish SNA network interconnect technical spedfications. Then they brainstormed to come UP with more than 2b0 principal milestone<, automated the milestones check-off system, and began to execute. Through consensus, the leadership group determined exacting del ineations of responsibil ities, decided on clear and concise directions for the numerous other employees involved in the project, and agreed to give them the responsibility and authority to carry out the assigned tasks. "We determined that we. the network ~rovider.would never aet behind the other vendors and mu1d not 1et q;al ity se sald. We said, 'we've got some superb people here at GEISCO and we're good at-what we 6. Let's show 'em ihat we can execute the touc~hones. ' " Poe said keys to the success of the project were participation and csnrrrunication, deveTaping consensus and conmftment from those responsible for execution internally , and cormswnicating frequently and forthrightly w'i th the client. "About 90% of system devel opment and imp1emnta ti on probl ems stem frq For human comunication," he raid. "You've got to know what YOU re aolns tecnnr cal IY, tnen yow communicate with the client at the very beginning. if you blow it, you've got to tell them. If they know about an honest mistake or val 1d ~roblem. and you approach solutions in a positive manner, they 'i1 support you.- U To keep everyone invol ved UD to date, the project team provided weekly- milestones check-offs and mn&ly sbtus reports' from m-0, copying section managers to keep them abreast of the project. Periodic reviews were he1d with Communications Dept. VP & CM Joe Squarzinf and with MARK 3000 VP & GM Joe Marchese and their staffs. Both were extremely support4 ve, providing criti cat resources, Poe says. Then there was Phil Poe's infectious enthusiasm. "Nobody wants to belong to a lousy team or organization," he says. "We all want to be wt nners. A project manager is a 1ot 1 ike the conductor of an orchgstra. He or she is only as good as the musicians--the project 1eaders who are res onsibl e for execution. Me won this one because our team was super !." (continued on next page) I i LISA Pmpdetcxy information -for internal we dy And while Poe be1 ieve in management by objectives and through consensus, he also knows the buck has to stop somewhere. "Somebody has to be in charge, to take responsibility for tactical decisions," he says. "Somebody has to make the calls, to take ownership and be willing to make mistakes, to take risks." Seven contracts During December, seven contracts were signed, four of which are simd in bcher new name accounts. Key closes with ultimate MPR of more than f50K incl ude : MPR C1 ient potential Appl ication She1 1 $270K ED1 for transmission of invoices NYPSA 75 EDI/OCO for transmission of orders and advertising copy Eastman Kodak 75 ED1 for movement of POs, MRs, and shi pmen t documents American Motors 75 VAN and SNA service for suppl iers to 1ink deal ers and warehouses Software Sciences 50 Author-Software packages to gas /uti 1i ties companies Petrodex 50 Author-terminal admin. & billing sys tem AEBG (Aircraft Engine Business Group--Evandal e demonstrated the manufacturing system developed by GEISCO which transmits engineering speci fications between AEBG and their vendors. Five of the eight suppliers who saw a prototype demonstration of DESIGNfEXPRESS agreed to use the system. GtmO has also received a verbal commitment from John Deere for a manufacturing ED1 system. Global Equipment Management (GEM), a recently establ ished consortium of four major Scandinavian shipping companies, has awarded a conmunications and computing contract to GEISCO. The total contract for software, processing, and communications is estimated to exceed $15 million over five years. 4th quarter sales GE Informati on Services Company's fourth quarter sales of $1 70.4 remained soft, million were down 10% from 1984 and 16% lower than the Operating but earnfngs Plan. Net earnings for the fourth quarter totaled $11.2 million, exceeded co-f bent 10% higher than 1984 but 23% be1ow Operating Plan, and included $4.6 million in Corporate restructuring coverage and non-operating credits. Net income for the year totaled $37.2 I (continued on next page) INHlRMAnON . 9) SERVICES Propriekry infcmafion-for internal use only mil1 ion (exceeding the net income commitment of $37 mil1 ion), 10% be1 ow last year and 17% 1ower than Plan, on sales of $670.7 mil1 ion, down 10% from 1984 and 13% be1ow Operating Pl an. Fourth quarter resul ts by business segment were as follows: o Network Based Services sales were down 8% from prior year. 'lelarketing and U.S. Sales decl ined 16%, due primarily to continued price erosion, wide-spread reductions in non-focused accounts and in-house migrati on of background vol ume. International volume remained strong (up 6%). Net income was $2.6 million (35%) lower than last year, driven by revenue decline (RCS selling prices off 14%) offset in part by significant cost reductions across most components. o GE Consulting Services revenue was 3% higher than 1984 reflecting increased volume and improved applied times. Earnings improved $2.3 million over last year due mainly to a reduction in goodwill costs and strong productivity gains. o Software International sales were up 8% from prior year driven primarily by higher maintenance revenues while industry softness continued to hurt software sales. Net income was $3.2 million higher than 1984 due mainly to additional maintenance revenue, software capitalization and other base cost reductions. o Intearated Comunication--. Services revenue decl ined 12% from 1 ast year reflecting the PgX business phase-down and 1ower services volume. Earnings dropped $1 .3 mi11 ion (46%) from 1984 primarily as a result of lower services revenue. o Combined Energy Enterprise/Netwsrk Consul tants sal es fell 83% below ~rioryear drfven b-Y the disposition of Network Consultants ?R September and lowervEnergy Enterprises volume ( depressed energy markets ) . USSdiSO managers It woul dn It be a compl ete surprise if the atmosphere above the enuusiast4c about Xerox Training Center in Leesburg , Virginia has been mol ecul arly candid discussf ons a1 tered ever so slightly. For at that site on Jan. 12 - 16 was held an informationally and Sales & Services Operation An intensive schedule of product demonstrations, presentations on numerous business and marketing top2 cs , training activities , candid and electri fying speakup sessions, and "winding down" activities such as "Las Vegas ni ht," the meeting was one indicator of a watershed for GEI CO--and the recognition of a refreshing management approach WI thin Marketing & U. S. Sal es Operations (MBUSSO) . (continued on next page) Proprietary infarmation -for internal use only Speaking to an obviously recharged, general 1y enthusi asticy$roup of sales rnarraaers on the ffnal bay of the meetina. Us&SO John Sidgmom comked on the busy &ting agenda aria-the speakup sessions between sal es and marketing managers. "We've had more s~eakue-. - sessions than we've had slee~. he said. "But we've taken MI s&-tough issuer," Sidgmore said; "and we've learned that yw can get things out on the table, have an open forum, and sail wal k-away as-a team and execute.
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