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CMG (company)
Encyclopedia
CMG was a consulting
company focused on telecommunications and computing
and based in London
, United Kingdom
. It was once a constituent of the FTSE 100 Index
but was acquired by Logica in 2002.
CMG started trading in August 1965, when Bryan Mills and Bob Fawcett gave up their jobs (with Burroughs and Honeywell
respectively) and started working out of the homes. By late 1965 they had moved into the basement of Doug Gorman's house in Blackheath
, South East London
. Doug had also left his job and was working full time for the company having worked out his 3 months notice at Cooper Bros
. One of the earliest employees, Barbara Ward, who joined the company in 1965 as a secretary, worked her way up in the company to Group Director of Personnel and became one of the best-paid women in Britain.
By the time she was hired, the founders had developed, and were selling, the Accountants' Time Ledger package. They bought only as much computer time as was needed for the work available, and produced a fully comprehensive package service. In 1966 they opened offices in Davis House in Croydon
. A rapid expansion ensued followed by a move to Sunley House in Croydon and offices being opened in Germany
and the Netherlands
in the 1970s.
Although Bryan Mills and Bob Fawcett left CMG in the 1980s, Doug Gorman continued to lead CMG until his death in 1995.
Groups of companies were divided into Sectors; these were Finance, Telecoms, Transport&Industry, Utilities, and Managed Services. Overseeing these were country boards, and above them were the Group Board. Once a year, each company would be visited personally by a delegation of Group Board officers.
SAP
service provider, for $4.5 million. Then in December 1998, it acquired Rohirst, a British
-based financial software maker, for $2 million. In February 1999 it bought Hamburg
-based Partner Consult and in March 1999 it purchased Belgium
-based Soft Guide: both companies were systems consultancies. In April, it acquired Amsterdam
's Thijssen Information Systems, an information management firm. At the end of the year it made two more acquisitions: Germany
's Banksys Software and France
's Eurasoft.
In 2000 it bought Germany
's SDC and Britain
's Computer Answers International and then in June 2000, it acquired Admiral Computing, another British
IT
consultancy. It has been agreed that the unusually high price for Goodwill (accounting)
spent by CMG on Admiral was the indirect cause of the Logica merger, as the cash position of CMG became compromised the next year when an economic downturn in the Netherlands caused an internal upheaval and later layoffs.
The merger of Logica (60%) with CMG (40%), on 30 December 2002, represented the union of an established technology firm (Logica) with an established consulting firm (CMG).
, trade and industry, transport
, telecommunications, energy
and public sectors. The Company also provided managed information processing services, including networks, payroll and personnel. CMG created its own quality system that it successfully used to gain ISO 9000
accreditation, called Commander, which included a Waterfall model
of software project management.
Though the most mission critical business process for CMG was always selling consulting services, the company also had a large internal IT department to service the company's infrastructure and manage services for large customer applications. One of the most popular applications which it developed and sold for decades, was PAYFACT, a payroll and HR reporting system that gained widespread use in the Netherlands in the 1990s. Another popular service was short message service center
s for mobile telephone operators, using the proprietary EMI (protocol)
. Such large-scale service offerings were managed thanks to strict adherence to Commander, and when Commander did not have the answer, the Commander body of knowledge was extended with the contribution of the company with the specific demand.
Commander's added value as a quality system over the years was thus improved and adjusted through proprietary use, as well as from projects for customers or industry standards.
Commander was later used against the company itself in court proceedings in 2002 when the company laid off workers in the Netherlands using legislation regarding temporary personnel. There was a lawsuit brought against CMG using Commander as evidence to show that employees were the responsibility of CMG, and therefore could not be seen as temporary personnel. Despite protests that Commander was proprietary information, the entire Commander cd was released to the court proceedings and became public record.
Consultant
A consultant is a professional who provides professional or expert advice in a particular area such as management, accountancy, the environment, entertainment, technology, law , human resources, marketing, emergency management, food production, medicine, finance, life management, economics, public...
company focused on telecommunications and computing
Computing
Computing is usually defined as the activity of using and improving computer hardware and software. It is the computer-specific part of information technology...
and based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It was once a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
but was acquired by Logica in 2002.
History
The Company was founded in 1964 by Bob Collins, Bryan Mills and Chairman Doug Gorman – the first letters of their surnames forming the company name. In fact, Bob Collins never actually commenced with the company, his place being taken by Bob Fawcett.CMG started trading in August 1965, when Bryan Mills and Bob Fawcett gave up their jobs (with Burroughs and Honeywell
Honeywell
Honeywell International, Inc. is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
respectively) and started working out of the homes. By late 1965 they had moved into the basement of Doug Gorman's house in Blackheath
Blackheath, London
Blackheath is a district of South London, England. It is named from the large open public grassland which separates it from Greenwich to the north and Lewisham to the west...
, South East London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. Doug had also left his job and was working full time for the company having worked out his 3 months notice at Cooper Bros
PricewaterhouseCoopers
PricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
. One of the earliest employees, Barbara Ward, who joined the company in 1965 as a secretary, worked her way up in the company to Group Director of Personnel and became one of the best-paid women in Britain.
By the time she was hired, the founders had developed, and were selling, the Accountants' Time Ledger package. They bought only as much computer time as was needed for the work available, and produced a fully comprehensive package service. In 1966 they opened offices in Davis House in Croydon
Croydon
Croydon is a town in South London, England, located within the London Borough of Croydon to which it gives its name. It is situated south of Charing Cross...
. A rapid expansion ensued followed by a move to Sunley House in Croydon and offices being opened in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
in the 1970s.
Although Bryan Mills and Bob Fawcett left CMG in the 1980s, Doug Gorman continued to lead CMG until his death in 1995.
Company values
CMG was known for its no-nonsense equality rules, which included eating lunch together daily in "the kitchen", calling all employees by their first names, ranking all employees per company holding each year and publishing this ranking (including salaries!) to its members, and demanding compliance to the company quality system "Commander" by all employees, all of the time. Sanctions included a "CAR" or Corrective Action Request, which could and often did result in demotion (lower ranking and sometimes lower salary). Since the company offered salary services as a product, salary management was understandably an open topic of conversation within CMG walls.Management
Each CMG company had approximately 150 employees, with between 60-80 consultants, one managing director (MD), one associate director per 10-12 consultants (AD), one quality manager, one accountant, and one secretary per director. If a company grew to 120 consultants, it was "split" into two. This created an "up or out" policy of management that depended on CMG Group growth, whereby aspiring directors from the consultancy ranks could be nominated by their MD to take an internal course that was also an assessment. There were no AD's who had not passed the 4-day intensive course.Groups of companies were divided into Sectors; these were Finance, Telecoms, Transport&Industry, Utilities, and Managed Services. Overseeing these were country boards, and above them were the Group Board. Once a year, each company would be visited personally by a delegation of Group Board officers.
Initial public offering
CMG floated on the London and Amsterdam stock exchanges in December 1995. Until that time, only employees and their immediate families could purchase shares in CMG, and at its peak about 85% of employees owned shares in the company. The IPO had the effect of imposing the first barriers to the company tradition of openness, since not all deals could be openly discussed after going public, and each company holding was beholden to secrecy guidelines. This started a slow change-over in company culture, a trend that increased when other companies were bought and merged in to the CMG name.Takeovers and Merger
In July 1998, it purchased COMETH, a FrenchFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
SAP
SAP AG
SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software...
service provider, for $4.5 million. Then in December 1998, it acquired Rohirst, a British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-based financial software maker, for $2 million. In February 1999 it bought Hamburg
Hamburg
-History:The first historic name for the city was, according to Claudius Ptolemy's reports, Treva.But the city takes its modern name, Hamburg, from the first permanent building on the site, a castle whose construction was ordered by the Emperor Charlemagne in AD 808...
-based Partner Consult and in March 1999 it purchased Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
-based Soft Guide: both companies were systems consultancies. In April, it acquired Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
's Thijssen Information Systems, an information management firm. At the end of the year it made two more acquisitions: Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
's Banksys Software and France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
's Eurasoft.
In 2000 it bought Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
's SDC and Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
's Computer Answers International and then in June 2000, it acquired Admiral Computing, another British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
consultancy. It has been agreed that the unusually high price for Goodwill (accounting)
Goodwill (accounting)
Goodwill is an accounting concept meaning the value of an entity over and above the value of its assets. The term was originally used in accounting to express the intangible but quantifiable "prudent value" of an ongoing business beyond its assets, resulting perhaps because the reputation the firm...
spent by CMG on Admiral was the indirect cause of the Logica merger, as the cash position of CMG became compromised the next year when an economic downturn in the Netherlands caused an internal upheaval and later layoffs.
The merger of Logica (60%) with CMG (40%), on 30 December 2002, represented the union of an established technology firm (Logica) with an established consulting firm (CMG).
Operations
CMG supplied services and products in the financeFinance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, trade and industry, transport
Transport
Transport or transportation is the movement of people, cattle, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations...
, telecommunications, energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...
and public sectors. The Company also provided managed information processing services, including networks, payroll and personnel. CMG created its own quality system that it successfully used to gain ISO 9000
ISO 9000
The ISO 9000 family of standards relates to quality management systems and is designed to help organizations ensure they meet the needs of customers and other stakeholders . The standards are published by ISO, the International Organization for Standardization, and available through National...
accreditation, called Commander, which included a Waterfall model
Waterfall model
The waterfall model is a sequential design process, often used in software development processes, in which progress is seen as flowing steadily downwards through the phases of Conception, Initiation, Analysis, Design, Construction, Testing, Production/Implementation and Maintenance.The waterfall...
of software project management.
Though the most mission critical business process for CMG was always selling consulting services, the company also had a large internal IT department to service the company's infrastructure and manage services for large customer applications. One of the most popular applications which it developed and sold for decades, was PAYFACT, a payroll and HR reporting system that gained widespread use in the Netherlands in the 1990s. Another popular service was short message service center
Short message service center
A short message service center is a network element in the mobile telephone network which delivers SMS messages.-Operation:When a user sends a text message to another user, the message gets stored in the SMSC which delivers it to the destination user when they are available...
s for mobile telephone operators, using the proprietary EMI (protocol)
EMI (protocol)
External Machine Interface , an extension to Universal Computer Protocol , is a protocol primarily used to connect to short message service centres for mobile telephones...
. Such large-scale service offerings were managed thanks to strict adherence to Commander, and when Commander did not have the answer, the Commander body of knowledge was extended with the contribution of the company with the specific demand.
Commander's added value as a quality system over the years was thus improved and adjusted through proprietary use, as well as from projects for customers or industry standards.
Commander was later used against the company itself in court proceedings in 2002 when the company laid off workers in the Netherlands using legislation regarding temporary personnel. There was a lawsuit brought against CMG using Commander as evidence to show that employees were the responsibility of CMG, and therefore could not be seen as temporary personnel. Despite protests that Commander was proprietary information, the entire Commander cd was released to the court proceedings and became public record.