Verified Document

Financial Perspective Case Analysis: Despite Having An Essay

Financial Perspective Case Analysis:

Despite having an exceptional pace of growth throughout the early years of their existence, Saatchi & Saatchi is facing client attrition and declining revenues. What had happened through their continual restructurings was the corporation lost track of their core vision, mission and values. The distance between these three core attributes of their business and financial performance had drifted apart so far that financial results were showing the increasingly disjointed nature of their corporate culture (Greenhalgh, 2004). The reliance on a balanced scorecard to unify their core vision, mission and values back to financial performance was needed (Niven).

As a result of the continued deterioration of financial and customer performance, management at Saatchi & Saatchi put into place financial and customer-driven goals for the company. The financial objectives included the foundation of their company's resurgence and comeback, including growing the revenue base faster than market rates, converting 30% of incremental revenue to operating profit and doubling earnings per share (Greenhalgh, 2004). As client relationships are core to the company's long-term growth plans, the top management team also set the goal of creating Permanently Infatuated Clients (PIC). This concept was meant to drive greater intensity of effort, passion and focus on results for their many global clients who had began replacing Saatchi & Saatchi through agency reviews or just letting them go and not replacing them at all, just using internal departments to do their work. Saatchi & Saatchi had lost its edge and it was showing both at the structural level of the company, their financial results and attrition of customers. The long-held vision of transforming their clients had been diffused with a lack of focus and...

The use of balanced scorecards were initiated after the senior management team of the company met Professors Kaplan and Norton at Harvard, who are credited with creating the concept of linking corporate and customer performance to financial results (Greenhalgh, 2004).
Analysis

As part of their restructuring efforts, Saatchi & Saatchi created three separate classifications of agencies or business units including lead, drive and prosper. The goals, objectives and focus of each of these three classifications were predicate don how effectively they could meet and exceed customer expectations over time. Beginning with the lead status agencies located in the UK, New York and China, the company concentrated the majority of its investment in these locations to drive new business and also retain existing clients in these regions, which are the world's most competitive in terms of advertising and marketing services (Greenhalgh, 2004). The "drive" agencies were the next class of businesses, who often had between 50 and 150 employees and were given the objective of maintaining stability of mid-margin accounts while growing the revenue base significantly through new client development (Greenhalgh, 2004). The third classification of agency was the "prosper" group which is where the majority of Saatchi & Saatchi locations and subsidiaries are members of. This classification of agency has up to 50 employees and is will most likely never become a large-scale agency. The focus however for this classification of agency was given the formidable objective of generating the majority of gross margin growth throughout the company (Greenhalgh, 2004).

In conjunction with the delineation of these operating units, the comp[any also created more aggressive customer-center objectives to put their clients back at the center…

Sources used in this document:
References

Greenhalgh, C. (2004) Building a Strategic Balanced Scorecard: Saatchi & Saatchi Complementary Case Study. Business Intelligence Company. Retrieved February 17, 2013, from http://www.business-intelligence.co.uk/PDFdownloads/strat_bsc/Saatchisr.pdf

MyStrategicPlan (N.D.) Balanced Scorecard: Performance Measurements for Success. Retrieved July 20, 2010, from http://www.mystrategicplan.com/strategic-planning-topics/balanced-scorecard.shtml

Niven, P. (N.D.) Financial perspective. EPM Review. Retrieved July 20, 2010, from http://www.epmreview.com/Resources/Articles/Delivering-shareholder-value-growing-revenue-and-enhancing-productivity.html

Robin, D. (ND) Vision, Mission and Values: Management Tools for Building a Better Workplace. Daniel Robin & Associates. Retrieved July 20, 2010, from http://www.abetterworkplace.com/027.html
Cite this Document:
Copy Bibliography Citation

Related Documents

Exxon Valdez Case Analysis: Common
Words: 3133 Length: 10 Document Type: Research Proposal

Like most litigations on such complicated issues the company had little to do but show reasonable accommodation, adopt better surface practices and wait out a lengthy period before their liability was reduced substantially by the courts. Ethical analysis: The key ethical issues of the case are pretty clear, did the captain knowingly endanger the environment by continuing to retain his position and navigate tankers through the area and did the company

Organizational Case Analysis
Words: 2539 Length: 8 Document Type: Case Study

Organizational Case Analysis Organization Overview Apple Inc. is a multinational companies specializing in the designing, manufacturing and marketing of mobile communication devices such as personal computers and digital music players. The company also sells varieties of mobile telecommunication devices such as iPhone, iPod, iPad, and Mac. Additionally, Apple Inc. sells some professional software application such as Mac OS, iOS, iCloud and other varieties of communication accessories. Apple Inc. sells its products through

Tylenol Case Analysis: Johnson and
Words: 1160 Length: 4 Document Type: Case Study

Johnson and Johnson issued a public relations response immediately naming their number one priority: to aggressively protect any consumer from the potential hazards that may be present in any of their family of products. Symptoms of the Problem -- Quickly, the crisis reached epic nationwide coverage. The panic that ensued, somewhat as the result of the twenty-four hour media coverage, fueled this panic into a frenzy. One hospital in Chicago,

Worldcom-Mci Case Analysis - Worldcom-Mci
Words: 2813 Length: 10 Document Type: Research Proposal

The first three organizations in line to recuperate their funds were Citigroup, J.P. Morgan and General Electric Group. They had been offering financial solutions and encouragement to purchase the WorldCom stock based on a favorable business relationship. However, at the time when bankruptcy procedures were commenced, the three organizations recognized their losses and intended to recuperate them. A succinct presentation of the period surrounding the crisis could be reveled by

Financial Analysis Rio Tinto Is a Major
Words: 3654 Length: 13 Document Type: Essay

Financial Analysis Rio Tinto is a major mining company in the FTSE 100, specializing in iron ore. The company is geographically diversified. A close competitor is BHP Billiton, and these two firms are compared on the basis of their operations and financial statements. From a financial perspective, both firms are relatively equal. Both firms had strong years in 2008 and 2010, with a weak year in 2009 in between. Rio Tinto's

Financial Statement Analysis in Order
Words: 1008 Length: 3 Document Type: Research Paper

This means that Ferrellgas is in risk of default. The company paid more in dividends last year than it earned in cash from operations. In short, Ferrellgas has an unsustainable burn rate. While Inergy had a poor financial position, it was able to tap into capital markets to alleviate any cash crunch -- Ferrellgas has yet to do this and of all these firms is the closest to default. Amerigas

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now