Serco correctional services: lessons for all to see

Serco, the multinational correctional services organization has undergone a metoric rise in terms of expansion and profit in the last five or so years. Today, however, it is a very different story - with major government contracts being pulled and its various diversified activities in a shambles. How did such an iconic organisation fall so fast? Was it over-stretching its ability to manage its diversified portfolio, was it simply poor executive leadership, or was it simply corruption and unethical practices that finally caught-up with it? The correctional and security services sector continues to be an expanding area. Current terrorist threats, custodial demands, and technological challenges make the sector one of increased opportunity. However, the work demands exceptionally high quality standards. Compliance, due diligence and process robustness take-on far greater requirement than experienced in most other sectors. When Chris Hyman joined the company as finance director in 1994, annual revenues were just £238m ($400m); they have ballooned to £4.9billion ($8.3 billion). But now it is claimed Serco is unable to deliver the quality of services and governments around the world are pulling back. It competitors are now circling and ready to pounce.