The Financial Perspective

Posted: August 5th, 2013

Saatchi and Saatchi case study

Introduction

            The Saatchi and Saatchi Company was owned by two partners who were brothers. In the mid 1990s, Saatchi and Saatchi Company almost went bankrupt because of the recession, which began in the early 1990s. This led the company management to get balanced scorecards. Before doing so, certain changes took place in the company. New strategies were formulated and company structure was changed. New personnel were appointed in the management team and the two brothers resigned their leadership. Bob Seelert became the chairperson and Kevin Roberts became chief executive officer (Greenhalgh, 2004).

In 1997, the chairperson unmerged the company from Cordiant Communication. Seelert contributed in forming a new vision and strategy for the company. He also led the company to success. The company intended to achieve certain goals by the end of three years. The management announced the blue print during the removal of the merger. Some of the goals are enhancing revenue base more than the market. The company intended to convert thirty percent of the revenue increased to become operating profit. Increasing the earnings for every share was also among the goals.

Saatchi and Saatchi incorporated these two approaches and they became successful. Their financial goals involved increasing revenue base and doubling shares’ earnings. All the goals were involved in adding revenue and profits for the company. This could only happen if the company got more customers and the current ones to purchase more. This is why the management made strategies, which paid attention to the customers. The company registered a big improvement and achieved its goals. The case study is suitable evidence that using both approaches simultaneously is not only successful but also necessary. Applying balanced scorecard works well for companies seeking better performance in both financial and non-financial aspects (Helms-Mills et al, 2009).