Charlotte Beers Case Study
Will Eide Individual Case Submission
Charlotte Beers
Leadership and Organizational Change
July 7, 2011
Word Count: 1,499
Executive Summary
Despite progress in driving operating margins up from a low in 1991 of 4.1% to 7.6% in 1993 (see Appendix) and achieving major wins with new clients and lost clients, Ogilvy & Mather (“O&M”) still had confidence issues. The company was a bit like an abused foster child, pawned off to new parent WPP and in need of tender loving care and firm direction. CEO Charlotte Beers instilled confidence in the executive suite by focusing them on their core strengths in direct marketing and creative advertising and encouraging them to embrace their terrific client roster. Finally, she instituted discipline by demanding leaner operating budgets given macro pressures on clients advertising budgets. However, Beers did not attain full support of the company in her vision. In order for her to complete O&M’s turnaround in 1994, Beers should adopt a matrix organizational structure and institutionalize the philosophy of Brand Stewardship with emotional symbols to make it accessible to every O&Mer. Finally, she should create an incentive system to attract her international agencies away from their local clients to further multinational brand initiatives.
Analysis
When Beers became CEO, her goal was to restore O&M’s “beleaguered” image with its clients and to repair the confidence of O&M’s employees. In effect, she had to re-brand an agency whose job it was to define brands for their clients. She accomplished her goal by creating an open environment where passionate leaders were welcome to voice their opinions and take part in shaping the turnaround. She focused on vivid imagery such as “thirsty for change” and symbols like Ogilvy red to create emotional links to the goal rather than financial targets or organizational charts. She crafted an internal corporate philosophy or vision known as Brand
Charlotte Beers
Leadership and Organizational Change
July 7, 2011
Word Count: 1,499
Executive Summary
Despite progress in driving operating margins up from a low in 1991 of 4.1% to 7.6% in 1993 (see Appendix) and achieving major wins with new clients and lost clients, Ogilvy & Mather (“O&M”) still had confidence issues. The company was a bit like an abused foster child, pawned off to new parent WPP and in need of tender loving care and firm direction. CEO Charlotte Beers instilled confidence in the executive suite by focusing them on their core strengths in direct marketing and creative advertising and encouraging them to embrace their terrific client roster. Finally, she instituted discipline by demanding leaner operating budgets given macro pressures on clients advertising budgets. However, Beers did not attain full support of the company in her vision. In order for her to complete O&M’s turnaround in 1994, Beers should adopt a matrix organizational structure and institutionalize the philosophy of Brand Stewardship with emotional symbols to make it accessible to every O&Mer. Finally, she should create an incentive system to attract her international agencies away from their local clients to further multinational brand initiatives.
Analysis
When Beers became CEO, her goal was to restore O&M’s “beleaguered” image with its clients and to repair the confidence of O&M’s employees. In effect, she had to re-brand an agency whose job it was to define brands for their clients. She accomplished her goal by creating an open environment where passionate leaders were welcome to voice their opinions and take part in shaping the turnaround. She focused on vivid imagery such as “thirsty for change” and symbols like Ogilvy red to create emotional links to the goal rather than financial targets or organizational charts. She crafted an internal corporate philosophy or vision known as Brand