Investing in remote-first businesses & agencies | 12 businesses, 2 exits. | Founder of HOV
The billable model is cracking from two sides: efficiency cuts it from above, automation from below. Most firms are responding predictably: launching digital practices, adding AI buzzwords, repackaging services as "solutions." It may buy headlines, not durability. I was searching for a firm successfully pulling off what a commenter called RefreshCo. The painful process of moving from human leverage to technology leverage business. I came across CACI International. For 54 years, it was another government contractor: predictable contracts, billable hours, thin margins. Then in 2016, leadership made an intentional shift. They built trust first. Technology second. The sequence mattered more than the strategy. The numbers are showing the payoff: → FY25 Revenue: $8.6B, up 13% → Technology Mix: 55% of revenue, growing at 16.5% → Backlog: $31.4B, ~4 years of visibility → Free Cash Flow: Executive incentives tied to targets CACI's transformation happened in three phases: Step 1: Extending the rails (2016) CACI spent $550M to acquire L-3 National Security Solutions. This gave them prime positions on sensitive contracts and security clearances. They bought trust infrastructure and cover to rewire the business without losing customers. Step 2: Put new trains on the rails (2019) With distribution secure, they layered in proprietary technology. Instead of chasing new markets, they went deeper: secure communications, signals intelligence, electronic warfare. Same buyers, same missions, same contracts. Step 3: Hardwire cash discipline (2016–today) CACI made free cash flow the scoreboard. By 2025, half of executive incentives were tied to three-year FCF targets. This turned financial discipline into governance. Three principles emerge: → Build the rails before you run the train. Trust and distribution come first because credibility buys time. → Deepen existing lanes before adding new ones. Technology should amplify what you deliver, not distract from it. → Anchor to cash discipline. It's the constraint that keeps the pivot credible. CACI shows that success comes from architecture: infrastructure before innovation, depth before breadth, cash discipline before growth theater. Most firms fail because they get the order wrong. In services-to-tech pivots, sequence is the strategy. (Full review sent to subscribers)
I like this a lot, Usman. The rails are in effect governance. The one thing that I have learned about rails/governance is that it enables velocity. Everything that goes very fast (e.g., airplane, rocket ship, race car, etc) has far more rails/governance than people realize.
Great context al always Usman. An love the Art like visuals of every post, Sequencing and a complementary trajectory together can be a very powerful approach, as demonstrated in the CACI case. It is interesting to explore how these two elements of the CACI playbook could play out in the Gartner and Booz cases. First explorational steps on both in a next reply (due to LinkedIn post length)
If you skip the foundation, nothing lasts. CACI shows trust first, tech second, cash always… sequence beats hype every time. Smart play :)
Trust, depth, and disciplined execution create a foundation where innovation can thrive, ensuring transformations stick and growth compounds over time. Excellent insight, Usman Sheikh.
What a fantastic success story 👏. I will share my takeaways in a separate post.
Helpful insight, Usman
Key M&A & Market repositioning is the bane that many professional services firms overlook. Those who know to do it, know what a comeback feels like inside its teams & outside among its customers. Reimagined Enterprise, Rewritten Market intent, Regenerating revenue, It can only come together with noose tightly tied to the market & Customer
Transformation requires careful planning and trust-building. It's inspiring to see such success.
What really resonated with me is the idea of trust as infrastructure. When I worked in KSA as a consultant, I saw firsthand how nothing moves without trust. Clients won’t share data, won’t open doors, and won’t engage deeply until they believe in you personally. The actual work comes second, it’s the trust building that unlocks everything else. It takes time, but once earned, it accelerates progress in ways no “innovation” shortcut ever can.
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2moThis is a strong example of why sequencing matters more than slogans. Too many firms treat “adding tech” as the strategy, when in reality it’s just another capability layered on shaky foundations. I’ve seen similar patterns in consulting: ↳ Firms that invest in distribution and trust first buy themselves the time to rewire. ↳ Those that jump straight to “solutions” or adjacencies often burn credibility faster than they build it. What stands out in CACI’s story is the discipline around cash. That constraint created the confidence for investors and employees to stick with the shift. Without it, the transformation would have looked like theatre rather than strategy. The lesson feels universal: rails before trains, depth before breadth, governance before growth.