FINANCIAL PERSPECTIVE

Saatchi & Saatchi

Saatchi & Saatchi

Introduction

This paper discuses the case of the company Saatchi & Saatchi. The company was going through the worst time period, where the new top management implemented the balanced score card to save the company. Therefore, this paper examines the apparent effects of balanced score card.



Discussion

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 companry?

Saatchi and Saatchi were formed by the two brothers, Charles and Maurice in 1970. The company showed tremendous performance, and grew astoundingly through acquisitions and mergers. In the mid 1990's the company hugely suffered like other organizations due to recession. It was on the verge of bankruptcy. Later, then the company was done with the completion of the phase of strategy reformation and structural changes that started with the higher rank appointment in the company named Bob Seelert, the chairman. Eventually, the two Saatchi brothers left the company. Further, Bob Seelert being a Chairman appointed a CEO named Kevin Roberts. Seelert performed exceptionally in forming new corporate strategy and vision. Roberts and Seelert, both were engaged in making the company run on the same road of success as before. They made a strategy to focus on their top two clients, General Foods and Proctor and Gamble (business-intelligence.co.uk, n.d).

It is clear from the above explanation that Roberts and Seelert majorly focused on customer perspective. However, a company must focus on the financial perspective as well. Roberts and Seelert were under the impression that focusing on the client base will bring them financial success. The company needs to understand that it is only by financial stability that it can invest in their people, process and technology (epmreview.com, n.d). The foremost essential element for profit making organizations is to create value for shareholders. This further follows the path of driving revenue growth and further maximizes productivity, while, on the other side, customer perspective focuses only on customers (epmreview.com, n.d).

Analysis: How did the company categorize its different business units (agencies)? What strategies were chosen for each unit?

They made three agency categories; which were lead, drive and prosper. In the agency of prosper, it had fifty staff workers and its potential was limited, thus it could never become ...