Marshall & Gordon: Designing and Effective Compensation System

Marshall & Gordon: Designing and Effective Compensation System case study

1. What are the biggest problems at Marshall & Gordon that, if you were Browne, would be keeping you awake at night?

The article explains the PR industry becoming more and more competitive. Being the director of a company in field which is becoming more competitive would probably keep me up at nights. It also create pressure from the board, who are lurking like wolfs in the pit of a harmful lamb- the director.

Also being in the middle of transaction of from one strategic mindset of a company to expanding and entering a bit different field would be stressful. Just searching for admit able candidates would be a pain in the ass, not even speaking of their salary. And then you have to train them together with existing employees to raise collaboration – coffee and red bull would not be needed to stay up.

And lastly but not the least – relationship with middle level employees who receive the bonuses from sales. In a way, the salary system is really motivating to work as a mad man, but in the strategic level change – you need support from other team players. Not only combining people who are just to work individually or in small groups, but also retaining “the old wolfs” would be a brain teaser and challenge.

1. What’s missing? What behaviors are necessary to support Marshall & Gordon’s new strategy?

In my opinion, the most important thing missing is communication, internal and external. Even in article you see that Browne receives a call and she hears a complaint and she knows the answer but does not explain or even say it. Employees should be well informed and connected to their peers and managers. It also struck me that sales (as usually it is) is working mainly on receiving their bonus. However, if their mindset would be put to common goal and company’s wealth/health is more advantageous than receiving simple bonus.  Basically, eliminate individualistic mindset and push cooperation internally, share of the pie to everyone (rather than individuals), shape common goals so that everyone works for M&G to grow rather than M&G to pay up.