Campbell and Bailyn’s Boston Office: Managing the Reorganization

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Campbell and Bailyn’s Boston Office: Managing The Reorganization
Campbell and Bailyn’s (C&B) Boston Office has long been the leader in market share and sales. This office was also used as a testing location for new organizational structures and new products and services. Changes in customer demand have decreased market share based, so the office needs a restructure. In June of 2007 the Boston office is reorganized under Ken Winston, the regional sales manager into “key account teams” (KAT). Concurrently, the review process is altered in a very odd fashion and Winston does not seem too enthusiastic about this change. Winston is preparing a presentation for the division leadership team and will discuss the effectiveness of the new
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The root cause of the problem with the performance appraisal is that sales people are now evaluated based on their relationships with the traders and researchers in New York with no input from the regional manager. In the case, there was no disconfirming data to suggest the performance appraisal needed a change. This was done in response to falling margins and the new performance appraisal process incentivizes selling higher margin products and encourages better relationships with the traders, managers, and researchers in New York. At this point C&B is in the “hurt or pain” stage of the general change process (Clawson, 6) and they should move to searching for alternatives such as changing the commission or bonus structure rather than removing the direct manager from the appraisal process. John Oates is the “guy on the mountain” in respect to the performance appraisal process and has been said to be acting weird and contemplating leaving C&B.

Winston encountered the disconfirming data and managed to clarify it to his team through a series of meetings where he explained specialization and the forming of KATs. This is the first step in leading change and according to John Kotter’s model of change this would fall into the “create a sense of urgency” phase. The office knew about the falling margins and saw it as a major threat to their office. The next step in Kotter’s model is to create a guiding coalition which goes along

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