Short Case Memo
1. Problem Identification
Leading Edge is an advertising company launched in Nova Scotia for about five years ago. They work specifically with business and firms to help launch their market, with planning, design, and executive of ads, media buying, and consumer follow-up. The company has recently faced some issues, with some of their top graphic designers leaving to work for competing advertising agencies, resulting in a turnover rate of 15% for Leading Edge. Human Resource Manager Brian Davis found out that the structure of the company was the main reason that led to the turnover. Therefore, he started looking for possible improvements to the company.
The company is structured in a matrix format, with different teams focusing on different innovations of the company. The company is made up of these different focus teams: business development (sales), account managers (work with clients), designers, and media buyers (who distribute the ads to media outlets). This highlights one of the problems of the company, which is when client management groups are formed; they are led entirely by account managers, and not the lead graphic designer. As the head designer, he would have first hand knowledge as to what requests are reasonable and possible for creation, which he is not able to oversee because his lack of decision making authority within the firm. The account managers have all the decision-making authority. Another issue is the high degree of formalization. The problems is, these rules were first installed in the early “survival, “ days of the company, but are still in effect today, five years after the company has progressed, and received renowned awards and recognition for their work.
To begin, the company needs to reformulate and come up with a modern formalization. Five years later, the focus of the company has changed; they are not worried about survival anymore, as they have already proved themselves...
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