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Environmental consulting firm having 70 offices worldwide, including 45 in the US 1200 employees having expertise across 60 different technical disciplines Gross sales of $220 million in 2000 Service Lines Air Quality
Water Quality
Process Engineering
Due Diligence Environment Health and Safety Remediation/Integrated Site Closure Capital Permitting/Impact Assessment Other
Problem
4 proposed solutions
Petersons solution
Reduce no. of employees
Pros: Lower utilization in many CSCs
Cons:
Lower utilization rates in most of the CSCs Cant do more business with fewer people especially consultant positions
Andersons Solution
Abolish the CSC system or to build a key account program
Pros:
Dedicated teams to concentrate on specific clients from which good revenues are generated
Cons:
Difficulties in defining and handling the key accounts Huge amount of restructuring involves high risk Huge Transportation cost for handling accounts in other territories
Webers Solution
Recruit Business Development Officers, BDOs
Pros:
Only job is to sell the companys services Compensation related to sales will limit the risk involved
Cons:
Raised questions about credibility as environmental consultancy needs more of a technical approach Seller-doers can also do this job who are already at low-utilization rate
Kellehers Solution
Improve incentive system by including more subjective evaluations
Pros:
Will incentivize the seller-doers for taking more risks Will motivate the employees by integrating various tasks
Cons:
How to tackle the subjectivity of the job Consultants wont be comfortable putting their paycheck in hands of CSC manager
Organizational Re-structuring
Region A Client I 30% 70% Client II 45% Additional responsibility of cross-regionalselling to seller-doer of the region handling more revenue accounts of any client. For Example: Client I has business with ENRS in two regions A & C. The CSC/ Seller-doer of region C who handles 70% of the revenue coming from client I will have the responsibility of cross-regional-selling in other regions as well i.e. region B,D,E,F,G
B
C D E F G 55%
Recommended Solution
Incentive: Formulate a suitable incentive for first deal clinched in each new region through his/her referral
Benefits: Incentives for the existing client-account holders to increase the revenue from that region to gain the access of all the accounts in other regions as well Will lead to better relations among existing client-accounts and the respective CSCs across the territories
Thank You