Managing the Reorganization
Case Study Analysis
Principles of Management- July 2012
Synopsis
• 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.
Synopsis
• RSM struggles in top down management edict which consists of a new performance management system.
Objectives
• 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.
Objectives
• 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