Marshall & Gordon: Designing an Effective Compensation System (A)
Posted: 30 Jan 2012
Date Written: January 17, 2012
CEO Kelly Browne wrestles with the design of a new compensation system to promote the collaboration and cross-selling necessary for supporting her firm's new strategy. Marshall Gordon International, a global public relations (PR) firm, has recently expanded its service offering to include Executive Positioning, which requires significantly more teamwork, higher-level client interaction and more strategically-minded consultants than their traditional PR work. The CEO is pressured to find a compensation system that helps retain and motivate the firm's valued PR consultants, attract new talent, and get all professionals aligned behind the new strategy.
Learning Objective: To explore how a firm's compensation and performance management systems can help (or hinder) in shifting from individualistic toward collaborative culture and work design. This case will deepen students' appreciation for the complexity of designing a compensation system that needs to motivate star performers while encouraging the collaboration necessary to align employees' behaviors with a new firm strategy.
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