The Boston office of Campbell and Bailyn has seen success over the years but was struck by a collapse in the mortgage backed securities market for six months in 2007.
C&B realized a major issue the company was currently facing - lack knowledge on specific items being sold. This has resulted C&B’s to implement changes to minimizing their losses. In addition, adding on to the stress of the company the Boston office has restructured their organization, changing how the company has organized staff for years. In short, one of these changes was the creation of the key account teams (KAT Team). This has allowed change of the high paying generalist into specialist, so customers would be able to get better knowledge on their products. But in …show more content…
Therefore Winston should not be particularly (scared) that many of the employees are unhappy because in fact it is mix between poor timing and the company getting used to a change after 100 years of the same system, with that said there are still several issues that have to be addressed.
PROBLEM 1 (sales team not happy about structural change)
In 2006, your company was losing business to competitors due to lack of specialization. Therefore, the key accounts team was established so that the customers can have service from a more specialized employee. Even though the implementation of this change was essential, employees found that their career became more restricted and they are not as motivated and efficient due to reduced earnings. For instance, after putting your worker John Oates on the corporate debt desk as a specialist, he started to lose focus and was said to be looking for another job.
In order to have an efficient company, every employee should perform under a common vision. It is helpful to demonstrate to employees why the change is crucial by illustrating to them the reason your company is losing market share in the past year.
To achieve better outcome and more committed employees, the key account team members should receive more responsibilities and be seen as leaders in their specialization. By giving them recognition and responsibilities, they will be more motivated and take more risks. As shown in Appendix C, Job Enrichment is extremely beneficial
Step 4 is to communicate the Vision. When everyone in the company understands and believes in what the company stands for, it creates a sense of unity and will reduce resistance to change. Communication is the key. Training will be implemented, but if there are any additional
Accordingly, the firm had more mortgage-backed safes than any other company in the U.S; in fact, the mortgage-backed securities were four times as many as its value of shared equity to its shareholders. In the early parts 2007, the company had a total of $86 billion worth of mortgage-backed securities; the credit crisis of the U.S saw the stock value fall drastically (Pontell, 2014). The business was affected by the miscalculation; in the year to follow the company would eliminate mortgage-related employee positions and close its offices in the BNC unit and the Alt-A lender Aurora in some states.
There was no time in Boston that was most emphasized, than the 1850’s to 1900’s. In the city of Boston there were a lot of changes that had occurred between the second half of the 19th century, not only with the city but also with the people living in Boston. Boston has always been changing and in transition.
Although these problems seem expansive and varied in nature a few changes to the corporate culture will likely remedy all of these complications. On the sales side job enrichment is of key importance, a necessary step towards this is having the sales force divided into two market segments, beer and juice. With each employee controlling a small set of clients who they will get to build a relationship with, a relationship which is based
In order to successfully and effectively implement change all of the employees should have a good understanding of how the changes will benefit the organization, their positions, and how it might impact their routines. To many employees the implementation of change is not always properly communicated, and the process of change on paper as it is being implemented can be threatening as well as confusing. Also, the people behind the scenes making the changes may not have taken specific details into consideration regarding effective changes that perhaps the employees
The second grievance that I found important is “He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people, and eat out their substance” because he attacked the people in ways that over powered them.
Not only were the leaders impressed by the employees insights, they took action to address all of the problems. As a result, participation increased, communication improved, relationship between employees and management improved, and access to training and development opportunities were wide-spread. But most importantly, once the original change initiatives were introduced, employees embraced the initiatives, offered insights on how to improve their outcomes, and ensured their success.
Numerous changes were made in key personnel in order to make a strong push into consumer products outside of sodium bicarbonate-related products and into the international arena in the early 2000’s. (Church, p.3) Many of the new management hires came from well known corporations and brought with them extensive marketing and international experience.
In this process some people left the company because they didn't want to share the vision of the new managment but without a system thinking the change for new management would had been very difficult to move forward but time will
Communication – Talk about the change vision, if people have anxieties then address these openly and honestly. Tie in the vision to all areas of the business from training to performance reviews
Management personnel must realize that there is not any one approach that works for everyone or every situation. Regardless of approach chosen, it is important to make sure that employees are aware of what is required of them and that their involvement is essential to organizational change success. Teams consisting of employees and management need to communicate and interact to adapt to and overcome obstacles that can hinder or sabotage the change process. A collective learning environment in which employees and managers can work together is beneficial to identify process errors or flaws that can present themselves during change implementation.
In response to a loss of clientele to competitor firms, Ken Winston (C&B’s Boston Sales Office Director) assembled the five most successful salespeople into a Key Accounts Team (KAT). Having previously enjoyed the autonomy of selling a diverse array of products to their own clients, these five ‘Generalists’ would now ‘Specialize’ only in one specific
To include rotating these employees’s in varying positions to minimize employee burnout and stagnation. The responsibility increases would also add to the employee’s feelings of empowerment and job satisfaction. Another important factor I would add would be increased and regular communications throughout the organization. These implemented factors would substantially increase employee loyalty and commitment directly supporting the organizations competitive goals.
Campbell and Bailyn’s Boston Office: 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.