Management

Case Berkshire Industries Plc

Berkshire Industries PLC

Berkshire Industries, PLC is a company that consisted of four different divisions. It is a decentralized company, where each department had a considerable degree of autonomy. Departments were "beer", "spirits" (alcohol), "soft" and "snacks". The company's initial public offering after the primary weight of the performance of the EPS was in (earnings per share = Profit / average number of shares for the period). EPS, however, was not an absolute truth, and was associated with a number of concerns.

Berkshire was financially strong and growing company. Although the EPS had been growing steadily throughout the last decade, the company's shareholders were not benefiting from the company's share prices had risen only slightly during that period.

At the request of the Board and CEO, William Embleton Berkshire began to look for a new performance measurement system and incentive system. He ended up in the CLA's (Corey, Langfeldt and Associates) to provide a solution.

The new system, however, was complex and difficult to understand. One problem was that it caused considerable confusion among the leaders. Although due to the new system, there had been arranged a lot of training in connection with, senior management, despite all the prejudices of the leaders do not "got the hang of" how the economic return would have been used as gauges. Some leaders even continued using the old system. Personally, I would maybe try a few in advance with the leaders of the new system and asked about their opinions. Too often, top management may have to forget / ignore the fact that they have a crystal-clear things are not always as clear to them below for those working. If the adoption was no longer a small stick of additional training, among other things acts as I would have arranged additional training.

Another problem was the Spirits Division discouragement and poor motivation. During downturns, consumers are not buying as...