Management Consultancy case study
Cadungog, Jeno
BSAc - 5A
Statement of the Problem Given the intense pressure exerted by supervisors to sell consulting services and commission based payment which depends on the number of consulting services sold, what changes in the compensation program for survey services can the company do to prevent the analyst from inventing problems on clients’ business to increase sales?
Objectives
1. To be able to reduce/ eliminate the pressure on the analyst in selling consulting services.
2. To be able to sell consulting service to clients without bias.
3. To be able to develop an equitable compensation program in the Survey Services Department.
Areas of Consideration
Leadership style
The CEO, John Burgess exercises a hands-on leadership style through conducting two management meetings per day just to check the progress of his employee’s work. This approach of John Burgess allowed him to closely monitor, correct and motivate his employees.
Organizational Structure
The company has a well-defined organizational structure with no key roles overlapping each other. Burgess is the CEO and different departments are under him. The business coordinators department, the sales and marketing department, survey services department, management services department, information system department and recruiting department are all reporting to Burgess.
Compensation Plan
International Profit Associates uses the commission based compensation which means that income earned for an individual is primarily based on his performance. Performance differs for each position, BC’s are using the point system in determining the commission earned. FSR’s are paid on the basis of surveys sold whether it is a normal sale or a hybrid sale, the amount differs for each. The analysts are paid based on number of surveys converted to consulting and the number of hours attributed to the consulting sold. Lastly, the consultants are paid on the basis of commission on a
BSAc - 5A
Statement of the Problem Given the intense pressure exerted by supervisors to sell consulting services and commission based payment which depends on the number of consulting services sold, what changes in the compensation program for survey services can the company do to prevent the analyst from inventing problems on clients’ business to increase sales?
Objectives
1. To be able to reduce/ eliminate the pressure on the analyst in selling consulting services.
2. To be able to sell consulting service to clients without bias.
3. To be able to develop an equitable compensation program in the Survey Services Department.
Areas of Consideration
Leadership style
The CEO, John Burgess exercises a hands-on leadership style through conducting two management meetings per day just to check the progress of his employee’s work. This approach of John Burgess allowed him to closely monitor, correct and motivate his employees.
Organizational Structure
The company has a well-defined organizational structure with no key roles overlapping each other. Burgess is the CEO and different departments are under him. The business coordinators department, the sales and marketing department, survey services department, management services department, information system department and recruiting department are all reporting to Burgess.
Compensation Plan
International Profit Associates uses the commission based compensation which means that income earned for an individual is primarily based on his performance. Performance differs for each position, BC’s are using the point system in determining the commission earned. FSR’s are paid on the basis of surveys sold whether it is a normal sale or a hybrid sale, the amount differs for each. The analysts are paid based on number of surveys converted to consulting and the number of hours attributed to the consulting sold. Lastly, the consultants are paid on the basis of commission on a