Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Management article
-
Reference no. R0204X
Published by: Harvard Business Publishing
Originally published in: "Harvard Business Review", 2002
Revision date: 13-Feb-2013

Abstract

For teaching purposes, this is the case-only version of the HBR case study. Eric Palmer arrived at the top floor of Camden Robotics, a supplier of industrial automation tools, excited to tell CEO Tom O'Reilly about his latest win: a print ad account with a well-known local software maker. 'You pulled in more business?' the boss responded. 'It's really working out, then, isn't it?' Six months earlier, Palmer, the head of marketing communications at Camden, had been in a less optimistic mood as he'd walked into the executive suite. His department had recently expanded and hired some pricey designers, but because of the economic slowdown, Camden was launching fewer marketing campaigns, and Palmer had feared that his department would be targeted for layoffs. Instead, O'Reilly proposed recasting the marketing function as a business unit. It would continue to provide services to other units within the company, but it would also be free to engage in 'value pricing' and could propose project work internally just as outside agencies might. In addition, the new group, Creative Central, could serve customers outside Camden in its spare time to earn revenue to defray its expenses. At first, the reaction to the news was overwhelmingly positive across the company. Palmer was thriving in the role of corporate entrepreneur. But several months into the change, the complaints started. As the discontent grows, O'Reilly is left to decide whether this organizational change is working.

About

Abstract

For teaching purposes, this is the case-only version of the HBR case study. Eric Palmer arrived at the top floor of Camden Robotics, a supplier of industrial automation tools, excited to tell CEO Tom O'Reilly about his latest win: a print ad account with a well-known local software maker. 'You pulled in more business?' the boss responded. 'It's really working out, then, isn't it?' Six months earlier, Palmer, the head of marketing communications at Camden, had been in a less optimistic mood as he'd walked into the executive suite. His department had recently expanded and hired some pricey designers, but because of the economic slowdown, Camden was launching fewer marketing campaigns, and Palmer had feared that his department would be targeted for layoffs. Instead, O'Reilly proposed recasting the marketing function as a business unit. It would continue to provide services to other units within the company, but it would also be free to engage in 'value pricing' and could propose project work internally just as outside agencies might. In addition, the new group, Creative Central, could serve customers outside Camden in its spare time to earn revenue to defray its expenses. At first, the reaction to the news was overwhelmingly positive across the company. Palmer was thriving in the role of corporate entrepreneur. But several months into the change, the complaints started. As the discontent grows, O'Reilly is left to decide whether this organizational change is working.

Related