Running head: MANAGING THE REORGANIZATION
Managing the Reorganization
Name:
Institution Affiliation
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MANAGING THE REORGANIZATION
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The changes affecting Campbell and Bailyn in 2007 was mainly caused by the meltdown
of the mortgage-based securities market that had previously dominated the financial world for
around six months pushing the B and C’s sales for to the end points. There was an international
crisis that was triggered by the collapse of multimillion dollars of mortgage-based securities
which left Winston’s sales force struggling to help their customers minimize their losses on their
portfolios bond (Locke, & Latham, 2013). The new sales tasks testing the patience and skills of
their customers and staff was even more unsettling in 2007. Many of the salespersons were
having difficulty in mastering the constant stream of increasing and new complicated debt
apparatus introduced by the firm. The firm’s customers and the sales team a difficult time
keeping up the pace as the division expanded to the new generation of complicated debt
apparatus (Teng, & Todd, 2002).
Creation of KAT was not a good idea. Before the creation of KAT, the generalist were
managers like of small independent firms and their accounts represented 75% of the overall
taxable bond sales. These generalists focused on making large trades which earned them high
commissions. They were able to manage around four multiproduct trade which required an
addition of more specialists as well as many staff members (Bridges, & Bridges, 2017). At that
very time Winston was a young veteran of bond sales and at one time the top grossing
salesperson. The introduction of KAT robbed him of the title. The idea of the creation of KAT
came up when Winston realized that they were losing their business to their competitors due to
lack of well-detailed expertise on their product. His team lacked detailed product expertise so
Winston was supposed to come up with a way to make sure his team had a well-detailed product
expertise so as to regain their business from their competitors.
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Winston’s strategy was good initially as he assigned his top minds like Callahan and Jen
Ulin to help the firm regain their business from the competitors. However, Callahan was not
satisfied with the changes Winston was about to bring forth as he claims the multiproduct trade
would turn to be more complicated given the number of persons to be involved once Winston’s
idea started to be implemented. Some members of the KAT like John Oates worried that the new
structure may force them so specialized such that their career prospects and compensation would
be limited. The lack of trust for these changes from some key members like Callahan and John
Oates would be a significant contribution to the failure of the KAT strategy to regain their
business from their competitors.
The effectiveness of these changes was to be observed once the firm regained its business
from their competitors through maintaining their market share as it used to be a few years back
(Bickhoff, N., & Opresnik, 2014). This was to be realized once top-grossing generalists started
earning a million dollars as they used to earn before. The changes would also be effective once
the sales figures were at par or beyond those of their competitors.
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References
Bickhoff, N., Hollensen, S., & Opresnik, M. (2014). Step 3: Marketing Implementation—
Executing the Marketing Plan. In The Quintessence of Marketing (pp. 111-136). Springer
Berlin Heidelberg.
Bridges, W., & Bridges, S. (2017). Managing transitions: Making the most of change. Da Capo
Press.
Locke, E. A., & Latham, G. P. (Eds.). (2013). New developments in goal setting and task
performance. Routledge.
Teng, J. Z. C., & Todd, J. J. (2002). U.S. Patent No. 6,460,048. Washington, DC: U.S. Patent
and Trademark Office.