Introduction: What was the situation for Saatchi & Saatchi in the mid 1990s? The management team adopted an approach that was primarily two-pronged: the financial perspective and the customer perspective. In terms of the financial perspective, what goals did the new leadership set for the company? “Saatchi & Saatchi is one of the world’s leading creative organizations. ” It was “a globally recognized brand. ” However, in the mid 1990’s, Saatchi & Saatchi went from a billion dollar company to the brink of bankruptcy due to a recession in 1990 in spite of its fast growth in the 70’s and 80’s.
The organization also lost direction by not efficiently managing its acquisitions. Not to mention the last of efficiency in managing its acquisitions, but Charles and Maurice Saatchi both left the company in 1995. This was a big loss in leadership and direction, the company was pretty much lost and needed to improve its organizational goals and efficiency quickly (Greenhalgh, 2004). This led to the “strategy reformulation and structural changes that began with new personnel being appointed at the top of the organization. Bob Seelert, Chairman and Kevin Roberts, CEO was in-place in April 1997 and set some pretty tough and new financial and customer perspectives. Saatchi & Saatchi’s pending financial crisis led to a series of events that eventually turned this company around. From the financial perspective, the new leadership established quantifiable and achievable goals for the organization. The first of which was to increase revenue at a faster rate than the market increased.
Next, was to turn 30% of their revenue into operational profit and their last goal was committed to doubling their earnings per share. All of which were ambitiously to be accomplished within 3 years, while improving on their customer relationships in a way that influenced their bottom line. Analysis: How did the company categorize its different business units (agencies)? What strategies were chosen for each unit? Saatch & Saatchi also adopted several strategies that related best to a customer perspective.
What were they? Saatchi & Saatchi Worldwide, categorize their different business units (agencies) in three different categories which were “lead, drive, and prosper and each category had different strategic charges. ” Conclusion: Did the financial strategies make sense for each given unit? Why or why not? Did the acquisition by Publicis Groupe SA change the results of the BSC? Now that you have analyzed both “prongs”, did the two approaches worked in synthesis or in conflict?