Is accenture stock performance a reflection of h the consulting industry performance?

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As an L2 at Accenture I think while a portion of the stock price reflects general headwinds, the vast majority is due to gross mismanagement by our GMC/CEO/Board. There are deep self inflicted wounds.

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No. Accenture has poor leadership starting at the top. Too much good talent has left and it shows.

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And don’t forget Julie purged through early retirements and cuts the top and a culture that encouraged true top MD talent to consider other opportunities 3-4 years back. And when those people left the best of the back and file, the ones who had options all left.

Anyone in the top quartile of a pay band L2-L4 regardless if a rainmakers, and certainly the true thought leaders and recognized external luminaries all were pushed or given reason to leave and did.

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Consulting firms should NOT be public companies. Meeting quarterly EPS targets requires doing things antithetical to the consulting business (and most other businesses honestly).

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No it’s a reflection of Julie’s failed strategy and leadership

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Accenture is built on reusable consulting approaches / product-izing services. Precisely the type of work that can be automated w AI.

They can of course help clients w AI itself, but clients prefer approaching the AI companies.

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Perhaps. But the respective stock prices do not reflect that view.

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It reflects a focus on low value work and offshore development that is not relevant when AI can now do that work. Everyone with good ideas was pushed to leave Accenture.

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80% is self-inflicted with poor leadership strategy and appointments. Julie needs to go, she isn’t the leader to lead Accenture into AI age. Nor is her deputy Manish Sharma, who wants Managed services everywhere. They need external insight, someone from Silicon Valley to build proprietary AI solutions to differentiate.

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I would say it's a reflection of concerns about future risk to the consulting industry and current performance headwinds

Fascinating how often this same question gets posted.

I wouldn’t imagine anyone, ACN or otherwise, wants to believe mismanagement is the root cause. That shows it’s possible anywhere.

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