Rudi Gassner and the Executive Committee of BMG International
1.In the meeting concerning the discussion of revising the business targets Gassner is having trouble getting people to address the issue? What are his options for moving the meeting forward, what are the pros and cons of each option, and what should he do and why?•As a first option for Rudi Gassner is to push hard on ECM as he used to do during his leadership as President and CEO at BMG International in order to get result he expected to be endorsed, id est. to face an issue that production costs is an important part of budget and its significant reduction greatly affect the profit part, therefore thanks to Arnold Bahlmann spending part would shrink significantly therefore without efforts boosting the profit part. Rudi`s intension was to make RD not too complacent on achievements but challenge themselves and MD to achieve new targets because of new circumstances that planed budget parts will change significantly therefore he wanted ECM to reconsider the budget according to his expectations.
Pros-Rudi used to do this time to time and his strategy was successful, he was sure "that he knows the best what's good for us (the company)" (pg.12).
-Timing of the events is important- if in March Managing Directors Convention all RD and MВ have agreed on targets to be reached and therefore bonuses gained in the end period but soon after that in May cost cutting event took place. Would Rudi push re-budgeting issue up for reconsideration if production prices would be redacted later in the year? My guess is - No. But when new budget discussions took place took place this important aspect of possible cost cutting was kept silent therefore the budget approved was inappropriate. As Rudi joked that "I am also naïve; you must be lowballing your plans every time, because you have never missed them".
-After in year 1993 receiving huge bonuses for even not over performing targets but just because of cost reduction next year would be more difficult to accomplish targets and
Pros-Rudi used to do this time to time and his strategy was successful, he was sure "that he knows the best what's good for us (the company)" (pg.12).
-Timing of the events is important- if in March Managing Directors Convention all RD and MВ have agreed on targets to be reached and therefore bonuses gained in the end period but soon after that in May cost cutting event took place. Would Rudi push re-budgeting issue up for reconsideration if production prices would be redacted later in the year? My guess is - No. But when new budget discussions took place took place this important aspect of possible cost cutting was kept silent therefore the budget approved was inappropriate. As Rudi joked that "I am also naïve; you must be lowballing your plans every time, because you have never missed them".
-After in year 1993 receiving huge bonuses for even not over performing targets but just because of cost reduction next year would be more difficult to accomplish targets and