Bus 499

Trident University International

BUS 499

Module 2

August 2011 Term

Case Study

Saatchi and Saatchi

Saatchi and Saatchi first established in London in 1970, by Charles and Maurice Saatchi. Headquartered in New York and employing over 7000 in 82 different nations, it was the world’s creative giant. It was a globally run agency recognizing brands such as Pillsbury, Visa and Toyota. The recession of the 1990s threatened potential bankruptcy of the agency. Charles and Maurice did all they could in an attempt to get their company through the hard times, however, they failed and left the company in 1995.

Mr. Bob Seelert was appointed as chairman of Saatchi and Saatchi which was one of many organizational changes in the hope for strategic refinement. As chairman, Mr. Seerlert continued to make changes to the management of the agency, in which his vision was that a new management team would ultimately lead to company success. This team of the future consisted to the Chief Executive Officer, Mr. Kevin Roberts, and the Chief Financial Officer, Mr. Bill Cochrane.

At a conference at Harvard in 1998, which Mr. Cochrane attended, Dr. Kaplan explored the balanced scorecard. The discussion completely caught the attention of Mr. Cochrane and at that very conference he came to the realization that in order for the company to strive he needed to implement the use of the balanced scorecard.

The importance of this new strategy or process as a means of achieving the company’s vision and strategic goals was well noted by the management team, thereby adopting it as the principal business model. This strategy would focus on what is known as the two prong effort, which included the financial and customer perspectives.

Focus will be on the financial perspective and the goals that the company implemented of which there were three. Those three primary goals were growing the revenue base better than that of the market, converting...