LEADING & MANAGING
Discuss what Beers is trying to accomplish as CEO of Ogilvy & Mather Worldwide.
This case is about an organizational change of Ogilvy & Mather (an advertising agency). The four core disciplines of the company include advertising, sale promotions, direct marketing, and public relations. The aim of solving the case study is to clear the concepts of organizational change, things require during the process and factors important to make the change successful.
Ogilvy & Mather is an agency that was found by David Ogilvy in 1948. The agency designed and run numerous campaigns due to which the company is recognized as “the class act of Madison Avenue” (Ibarra & Sackley, 1995). After the retirement of Ogilvy, when an immense decline in organizational profitability had been observed the Charlotte beers has been appointed as a chief executive officer of the organization. When Charlotte joined the company she observed that the company is going through several challenges such as the company does not have clarity of vision that had led the company to unclear direction, each executive had its perspective. The company was lacking in teamwork abilities, the globalization of advertising occurred as the challenge for the company, and the company image had beleaguered because customers were rating the company below against competitors.
Several studies are evident that confidence of talented people has a positive impact on the performance of the organization. Some of the researchers that have concluded this include Bandura, (1997); Mittal, Ross & Tsiros, (2002) and Jong, Ruyter & Werzels, (2006). However, at O&M talented people were lacking in confidence that was amongst the major causes that led the company towards decline. Due to shaken confidence, the company had to face the loss of clients, and lack of open communication did not allow the company to make changes and innovations. When beer joined the organization, the need of change was prominent.
Charlotte Beers wanted to activate the existing assets (creative talent, a vast network of offices that exist worldwide, and distinct multinational clients). She was trying to accomplish the advertising quality that can attract the customers and satisfy them. She decided to provide a clear direction to people; she observed that the reason not to have famous advertisements is the lack of communication and collaboration among major departments. Therefore, she tried to improve collaboration. She wanted to accomplish the brand stewardship and wanted to create the clear vision and mission for the organization that can provide the people direction. She sought to maintain the control over logical and emotional relationship that exists between a product and customers by recognizing it as the demand of the clients. To foster the change and giving direction, she proposes three strategies namely client security, better work more often, and financial discipline.
Justify your assessment of the vision of Ogilvy & Mather.
Freeman (2010) defined vision as a picture that is in the eye of mind regarding the days ahead. Vision portraits a condition that does not exist. Vision talks about change; it is about extending beyond the current state and stretching the reality. Vision is about struggling with the current state (Freeman, 2010) and does not prefer to be in status quo. These features of vision is exposed the fact that vision itself calls changes.
The vision statement of the company is
“To Be The Agency Most Valued By Those Who Most Value Brands”.
The vision of Charlotte beer was to bring the change and reinvent the organization that is evident with the vision and values statements. Her vision was to be mindful of the importance of brand; the vision of the company was ignited sales and staying in the power of continuing brands. For the accomplishment of this vision, Charlotte beer focused on resources, passion, and energy on the present clients. To have immense growth, she focused on multinational clients and considered them as an opportunity for organizational growth. Change has become the need of every organization and leaping in change without the understanding of consequences of actions can lead organizations towards the disastrous situation. It is important to disclosed that why it has been said that the vision of the organization was to bring change.
Vision is the path to deal with the ideal (Pugh et al., 2013). The vision of the company is supposed to be the most valued brand in showing the path to change the organizational environment, culture, strategy, and so on. Change deals with macro issues such as culture, vision, mission, strategy, and environmental trends (Graetz et al., 2012). If the vision statement of the company is analyzed critically, then the three major innovations can be observed. The first one is the restructuring of resources, the second is the arsenal of technology, and the third is the intensity of focus. All these things collectively have been mentioned as “brand stewardship” because these features help the company in creating, formulating, and energizing the profitable brand. Change can be failed in a result of the resistance of organizational member due to lack of motivation to adopt the change and to take it as a challenge or due to lack of collaboration.
Recepoglu (2013) mentioned in his research that change can fail due to lack of clearly in explaining. Moreover, he stated that when change can fail when it is fast, or because of ineffective or too bureaucratic leadership. Other researchers have said that lack of coordination, and due to lack of stakeholders’ involvement can also lead to change failure (Hargreaves, 1997; Schwahn & Spady, 1998). As happened with the company. After initial success, the change strategies began to fail due to the failure of leadership, collaboration, and lack of clarity in vision due to lack of teamwork, and communication.
Critically evaluate the process that Beers and her team went through to create the vision.
When creating the vision the team of beer and she went through several challenges. Charlotte beer tried to move the good company to the great company. To assess the process of creating a vision, five levels of Collins (2001) have been taken into consideration. According to Collins (2001), pushing a company towards greatness, occurs in three stages that include disciplined thought, disciplined actions, and disciplined people. Collins argues that it is essential that right people on key seats to determine the vision and rather than grand ideas know to build momentum through a small steps in a series. If the vision of beer is considered, it elaborates the desire to get right people such as he fired the existing executive due to his nature of resisting change or could not instigate pivotal changes. Then she gave a call to all employees and selected some who shared her vision (Deaton 2009). This is the truth that great organizations build the culture of truth. The beer did the same rather motivate people she connected with already motivated people. She built the platform of open communication where people can openly disagree with one another through initiating “thirsty for change” group. She knew that people were lacking in accord regarding the implementation of the vision, but they have good vision. She considered the hedgehog concept important. She decided to activate the existing assets and decided to satisfy the multinational clients. She had deeper understanding of core strategies and stuck with them. She preferred to improve its skills of serving the company’s clients in a better way.
During the process of change, she preferred to design the culture of discipline in which people collaborate with each other. Charlotte Beer served the company with the advantage of these strategies such as the need for change was identified. Then the change was brought to the organization. Then, the communication and cultural structure of the organization shook up, through building WCS top-level talent was brought to the organization. At present, the company became energetic for existing and potential clients. Moreover, she has been successful in removing the organization from the ranking of the beleaguered organization.
Assess the key challenges facing Beers at the end of the case:
Ending the process does not mean ending of challenges, challenges continue after implementation. At the end of the case beers has to face several challenges in making the change successful such as:
As compared to the client, the agency was unenthusiastic in reacting to brand stewardship.
Employees who were below the senior level did not have appropriate knowledge of the principles of stewardship, how to use this concept and had a lack of experience. For the success of the concept, it was essential that all members of the organization understand the principles, but, unfortunately, a minority of the organization understood the concept truly.
Many are not true believers of brand stewardship and many were not proficient. This was the challenge for beers planners, and they were confused as well in using the concept of developing the creative strategy. Account executives misunderstood the concept that resulted in losses. Beers observed the resistance from the creative side.
The one more challenge was to make the clients understand the potential of the concept.
The insufficient communication strategy was a problem that was preventing the communication of the vision as a challenge. People were not able to understand that how the vision is fit for the business strategy and many of them were unable to understand themselves as a part of the vision. For accepting the change, understanding the need for change is pivotal (Settimba, 2009).
Some of the recommendations in this regard are as follow:
It has been recommended to beers that she must use technology to accelerate momentum not to create thrust. Technology can be user to spread the vision of the company. Collaboration and teamwork can be brought into practice through the deployment of modern technologies. The fee schedule between local offices and WCS should be supportive and fair.
Beers has to make some investments in people to bring changes in culture. To sell the new vision, it is crucial that people understand the concept and for this, it is crucial to have knowledge and expertise. Beers must pay its focus on resolving the conflicts and should attract its clients through promoting the vision.
Charlotte needs to enhance its connection with people to enhance the association. She must visit the location and have meeting with them that will bring motivation to them to implement her ideas and enhance their commitment to the organization (Wang, 2011).
The importance of incentives in motivating people cannot be avoided, and many companies use this practice (Rothwell, Sanders & Soper, 1999). Therefore, it is crucial that reward and incentive system is modified to motivate people. It has been determined that the bonuses have been associated with local office presidents that are a discouraging factor for other employees.
It has been determined that lack of understanding regarding vision exists. Therefore, to deal with the lack of understanding of the stewardship concept, the company should conduct information programs that can guide employees regarding stewardship programs.
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