CAMPBELL AND BAILYNS BOSTON OFFICE: MANAGING THE REORGANIZATION

- SUBHRA PRATIM HALDER (PGP32204|SECTION E)

Question 1. Critically analyze if the introduction of KAT will bring about the desired change. Present
your arguments in favour or against it.
Answer The creation of Key Accounts Team (KAT) was a spur-of-the-moment decision to address the
losing business to C&Bs competitors and to increase socialization in the sales department. However, the
following points anticipate that the structural change will not be effective in bringing the desired change.

Generalists in the taxable group cater to 60 largest customers impacting 75% of the taxable bond
sales. The pooling of customers into specialized offerings has risk of decreased compensation, as
half of the clients had reservations to this business model.
KAT results in multiple points-of-contact for multiproduct sales. In bigger trades, working with all
these specialists makes it more complex and lesser efficient.
Growing resentment among generalists in terms of limited career prospects and change in work
culture (self to teamwork oriented), thus limiting their natural abilities.
Under-utilization of 4 taxable bond specialists sharing a group of 120 small customers, who bought
and sold less frequently and in much smaller blocks (25% of taxable bond sales).

Question 2. What are the choices for Winston besides KAT? What must be the way forward for the Regional
Sales Managers to ensure the best for C&B?
Answer Following is an alternate model for the structural change through which we can retain the
generalist roles and levitate them as consultants to deal with largest customers. At the same time, specialist
role can be integrated as back-end support to provide detailed product expertise. The specialists can be
exposed to the working of large expense accounts and revenue sharing can be done with them (as it is
mentioned that specialists made about half the salary and commissions paid to generalists).
Domain wise training needs can be met through specialized training departments in complicated synthetic
debt instruments & soft skills to facilitate customer relationship in & outside traditional work environment.
For the 120 small customers, specialists can be the respective points-of-contact as before, and required
support and advice can be taken from generalists on riskier large trades. Over the time, specialist role can
gain expertise and be the nodal point for all sales related activities with generalists working as consultants.
Boston Regional Sales Office - Ken Winston (Director)

60 Largest
Customers

Generalists (5)
as Consultants

Mortgage Sales Specialist

Training
(M)

High Yield Sales Specialist

Training
(HY)

Corporate Bond Sales

Specialist

Training
(CB)

Govt. Sales Specialist

Training
(G)

Futures/Options Specialist

Training
(F&O)

Specialists (7)

Training
(Misc.)

120
Customers