CMG (company)
| Company type | Public (until 2002 merger) |
|---|---|
| Industry | Telecommunications, Computing, Consultancy |
| Founded | 1964 |
| Founder | Bob Collins, Bryan Mills, Doug Gorman |
| Defunct | December 30, 2002 |
| Fate | Merged with Logica |
| Headquarters | London , United Kingdom |
Area served | United Kingdom, Netherlands, Germany, Belgium, France |
Key people | Doug Gorman (Chairman until 1995), Cor Stutterheim (Chairman from 1995) |
| Products | Accountants' Time Ledger system, PAYFACT payroll and HR reporting system, EMI protocol SMS centers |
Number of employees | Approximately 150 per subsidiary (typical unit size) |
CMG (Computer Management Group) was a consultancy firm focused on telecommunications and computing, based in London, United Kingdom. It was part of the FTSE 100 Index until it merged with Logica in 2002.
History
Established in 1964 by Bob Collins, Bryan Mills, and Chairman Doug Gorman—the company’s name originated from the founders’ surnames—Bob Collins did not join the firm and was substituted by Bob Fawcett. CMG commenced operations in August 1965 when Mills and Fawcett left Burroughs and Honeywell to work independently from home. By the end of 1965, the business had relocated to the basement of Gorman’s residence in London, who had departed PriceWaterhouseCoopers to dedicate himself fully as leader. Barbara Ward, an early recruit who started as a secretary, rose to become Group Director of Personnel and was among the highest-earning female executives in Britain.
The company’s initial product was the Accountants' Time Ledger system, designed to streamline computer time procurement. In 1966, CMG established offices at Davis House in Croydon, followed by swift expansion into Sunley House and international branches in the Netherlands (1969) and Germany. The acquisition of Baric Computing Services’ bureau operations from ICL in 1985 significantly strengthened CMG’s UK footprint, laying the groundwork for its growth in Outsourcing and Managed Services throughout the 1990s.
While Mills and Fawcett exited during the 1980s, Gorman remained at CMG’s helm until his passing in 1995. He was succeeded by chairman Cor Stutterheim. Fawcett died in 2012. In 2016, Bryan Mills contributed a detailed interview reflecting on his time at CMG for the IT Archives.
Company values
CMG was noted for its rigorous commitment to equality, exemplified by daily shared lunches, informal first-name interactions, annual company-wide publication of employee rankings including salaries, and strict enforcement of the quality protocol known as "Commander." Failure to comply often resulted in a Corrective Action Request (CAR), which could lead to salary cuts or demotion. Since CMG also managed salary administration services, compensation discussions were openly conducted internally. All employees were required to wear formal suits, including junior engineering staff.
Management
Each CMG subsidiary comprised approximately 150 personnel, typically including 60–80 consultants, one managing director (MD), an associate director (AD) for every 10–12 consultants, along with a quality manager, accountant, and secretary supporting each director. When consultant numbers reached around 120, the unit was divided. This scalable structure enabled MDs to nominate consultants for a compulsory Pre Management Training Course (PMTC) before their promotion to AD.
The companies were organized into Sectors such as Finance, Insurance, Telecoms, Transport & Industry, Utilities, Commercial (Oil & Gas), Public Sector, and Managed Services. These sectors were governed by country-specific boards as well as an overarching Group Board. Representatives from the Group Board conducted annual visits to individual companies.
Initial public offering
In December 1995, CMG listed shares on both the London and Amsterdam stock exchanges. Prior to this event, ownership was restricted to employees and their relatives, with employee-held shares reaching about 85% at its height. The IPO introduced confidentiality constraints that limited open communication regarding deals and initiated a gradual cultural transformation that accelerated with later acquisitions and mergers.
Takeovers and Mergers
In July 1998, CMG expanded its portfolio by acquiring the French SAP services firm COMETH for $4.5 million. Later that same year, it secured British financial software company Rohirst with a $2 million deal. Early in 1999, CMG further extended its reach by purchasing Hamburg-based consultancy Partner Consult and Belgium's systems advisory firm Soft Guide, followed shortly by the acquisition of Amsterdam’s information management enterprise Thijssen Information Systems. By the end of that year, CMG had also incorporated Germany’s Banksys Software and France’s Eurasoft into its operations.
The year 2000 saw additional acquisitions including Germany's SDC, the UK’s Computer Answers International, and in June, British IT consultancy Admiral Computing. The substantial goodwill premium paid for Admiral placed pressure on CMG’s cash reserves during a downturn in the Dutch economy, which triggered internal challenges and workforce reductions.
On December 30, 2002, a merger was finalized between Logica and CMG, with Logica holding a 60% stake and CMG 40%. This union combined Logica's technological capabilities with CMG's consulting expertise.
Operations
CMG delivered a broad range of services and solutions across multiple sectors such as finance, commerce, manufacturing, transportation, telecommunications, energy, and government. Its offerings included managed information processing services covering network operations, payroll management, and human resources administration. The company developed an internal quality framework named 'Commander,' which employed a Waterfall methodology for software project oversight and played a key role in achieving ISO 9000 certification.
Although consulting formed the cornerstone of CMG's business model, it maintained a substantial in-house IT division responsible for supporting both infrastructure and client applications. One notable product was PAYFACT, a payroll and HR reporting system that gained widespread adoption throughout the Netherlands during the 1990s. Additionally, CMG provided mobile network operators with short message service centers utilizing its proprietary EMI protocol. These extensive service offerings were governed by rigorous application of the Commander system, which continuously evolved by integrating specific organizational needs alongside industry standards.
Over time, Commander’s effectiveness as a quality assurance tool was strengthened through exclusive internal use and various client engagements. However, in 2002, the system played a pivotal role in legal proceedings when CMG dismissed Dutch employees classified under temporary staffing laws. Despite initial resistance due to its proprietary nature, the court accepted Commander as valid evidence confirming CMG’s obligations toward these workers; consequently, complete documentation of Commander was disclosed publicly during the trial.