Campbell and Bailyn’s Boston Office:
Managing the Reorganization
Case Study Analysis
Principles of Management- July 2012
• Fixed Income Division: International Investment Bank’s Securities Brokerage division facing rapid change
• New Products flooding the markets, structural cyclical
industry change challenges the limits of firm’s expertise
and its traditional form of organization.
• Kevin Winston, RSM Manages Boston Office and
maintain high level of sales.
• Created Key Account Team (KAT) to increase sales of
specialized, higher margin products.
• Challenges the core values of the organization- such as
salesperson’s control of his/her customer base and the
appropriateness of product specialization.
• RSM struggles in top down management
edict which consists of a new performance
• To provide a context to study how changes in the
competitive environment of an organization-industry,
customers, other firms- can necessitate changes in the
design of an organization.
• To provide an exercise in which readers can learn to
think through and balance the consequences –
advantages and disadvantages – of introducing
organizational change into a well –established group.
• To provide an illustration and grounds for discussion
about how changes in one work group require the
participation of – and have consequences for – other
segments within the hierarchical structure.
• To provide a framework – the one presented through the eyes of the protagonist- in which the reader/ student has
to consider the tradeoffs between a number of important
management priorities: in this instance, performance
management, compensation, regional sales, firm profit,
staff morale, and customer satisfaction.
• To introduce the tradeoffs for managers in how to
increase sales both by “ pushing” through productfocused marketing, and “pulling” by creating customer demand.
Use of the Case
• Organizational Development
• Design, especially of sub groups in larger organizations • Design, in cross functional context
• Change Management
• Preparing for resistance to change\Selling the change
• Evaluating progress
• Managing Teams
• Especially managing “stars” in teams
• Balancing individual rewards with groups rewards
• Performance Management
– Performance Appraisal
• Single evaluator to multi-rater system
• Peer appraisals
Use of the Case
• Sales and Marketing Management
• Aligning sales and management
• Product profitability
• Product specialization
• Managing in the Securities industry
• Investment companies (the customers)
• Managing for Value
• Understanding the tradeoffs between growth and
• Analyzing the industry context
– What are the trends in the investment
banking industry affecting Campbell and
Bailyn in 2007?
– Product specialization
– Move toward commoditization in some
segments of industry.
– Increasing sophistication of customers
• Assessing the pre-existing organization
– Describe the strengths and weakness of the C&B
Brokerage division prior to the two changes explained
in the case.
• The interactions of the New York Office with the regional sales teams
• Whether there are misalignments in incentives between
– Salespeople aim to maximize dollar value of sales (hence commission) while product managers aim to maximize profit of sales (overall firm objective as well).
– How important is the regional sales manager to the
success of the regional office? What function does he
or she serve?
– What is the most pressing problem that Winston
needs to address in his organization? Why?
• The Key Account Team
• What are the major design features of the KAT?
• Did the changes taking place in the bond industry and within client companies justify the decision to create the KAT?
• Does the specialization represented by...
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