Cambell and Bailyn

Background of Campbell and Bailyn

Campbell and Bailyn, or C & B, is a large investment bank and constitutes one of the five largest banks in the world. The company’s headquarters are in New York, and the firm has in total another seven regional offices. The firm is divided in certain segments, such as corporate finance, investment management, mergers & acquisitions, trading and securities sales. The main focus of the company during the last few years has been the fixed income division and the trading. These two segments constitute a significant amount of the total profits that the company is generating. More significantly, these two divisions generate around 20% of the total profit. Regional managers are supposed to report directly to the national sales manager, Paul Trimble. Subsequently, Paul Trimble, reports to David Cowan, who is the director of the company’s bond division. The customers of the company are highly sophisticated investors, such as mutual fund companies, insurance companies and regional banks.

Background on the Boston Regional Office

The regional sales manager of the Boston office is Ken Winston. The operation of this office was focused on three types of securities: the money market, the tax-free and the taxable securities. The latter was the most profitable group of securities as it constituted 60% of total sales. Moreover, this office is the most profitable regional office of Campbell and Bailyn. Because of this, the office is used as a test location when the company wants to assess new products and ideas. Winston has managed to be a great leader so far for the company. The staff seems to see him as a good leader and a coach. As a study by Nohria, Groysberg , and Lee has shown, employees are motivated when the manager fosters a good harmony where there is a mutual trust and friendship in the organization.

Issues Of the Restructuring

When the Winston and the other managers of the New York office implemented the restructuring plan in the organization, they failed to think of some important factors. These factors refer to how the current employees would react to such changes. A study shows that in order for the restructuring to be successful the employer should communicate and discuss it with the staff before she decides to implement the changes. More specifically, when the employer changes the current role of the employee, has to consider whether this new role is significantly different than the previous. In our case, the generalists feel that their new more specialized roles will lead to a role that would limit their career development and their compensation. Although we discussed that Winston was admired for his approaches to the staff, it seems that the generalists started to lose their trust. Referring to the same study of Nohria, Groysberg, and Lee , employees are motivated by