Multicom Case Essay Example

Multicom Case Essay Example Multicom Case Essay Multicom Case Essay THE MULTI COM CASE Multicom is a small firm employing 150 people in the public rela-tions field. It was started by Jim Walsh, a marketing specialist, and Wendy Bridges, a public relations expert. They had worked together for several years at a medium-sized communications firm and decided to branch out on their own to realize their own ideas as to what a good PR firm could and should be. They felt that their combined expertise and extensive contacts provided an excellent base on which to do this. Before submitting their resignations at their old firm, they persuaded two colleagues, Marie Beaumont and Frank Rossi, to join them as minor-ity shareholders. Walsh and Bridges each held 40 percent of the equity in the new venture; Beaumont and Rossi were each given 10 percent. Rossi was an editor and writer with an excellent reputation, and Beaumont was a well-regarded film and video expert. At first, business was difficult, and they were glad of the corporate clients that they had taken with them from their old firm. Competition was keen, and their old firm seemed subtly to be doing everything it could to block their progress. However, they worked hard, and their reputation steadily grew along with the size of their staff and their earnings. By the end of their second year, the four partners were each earning almost double their previous salaries and building a significant capital investment as well. They felt that they were well on the way to achieving the kind of top-notch com-pany on which they had set their sights. These early years were exciting ones. When they established Multicom, the four partners adopted a client- centered mode of organization. Each partner had certain clients for whom he or she felt a special responsibility, and in effect each became a project manager for these clients. Each developed a reasonable competence in all aspects of the agencys work so that one could substitute for another when necessary. New staff were encouraged to develop the same all-around skills and capacities in addition to their specializations. While this was often time-consuming and expensive, it created great flexibility. The search for new business and continuing contacts with clients took a significant pro-portion of staff away from the office most of the time, so the existence of a number of good all arounders was a real asset. Besides that, it often made work more interesting and enjoyable and added to the general team spirit of the office. The staff at Multicom worked hard, often starting early in the morn-ing and working late at night. They also played hard, throwing regular par-ties to celebrate the completion of major projects or the acquisition of new clients. These parties helped keep morale high and project Multicoms image as an excellent and exciting place to work. The firms clients often attended these parties and were usually impressed by the vitality and qual-ity of interpersonal relations. During the companys third year, however, things began to change. The long hours and pace of life at Multicom were getting to Walsh and Bridges. Both had heavy family commitments and wanted more leisure time. They increasingly talked about the need to get more organized so that they could exercise a closer control over staff and office activities, which, in their view, at times verged on the chaotic. Beaumont and Rossi, however, both of whom were single and at thirty and thirty-one, respec-tively, almost ten years younger than the senior partners, relished the lifestyle and were keen to maintain the firms present character. They would have been happy to shoulder a greater share of the work and responsibility in return for a greater equity in the company, but Walsh and Bridges were reluctant to hand them this sort of control. As time went on, it became clear that there were important philo-sophical differences about the way the office should be run. Whereas Walsh and Bridges regarded the ad hoc style of organization that had developed during the first two years as temporary-necessary until weve sorted out our ideas as to how we want to put this organization together -Beaumont and Rossi saw it as a desirable way of doing business in the longer term. Whereas Walsh and Bridges complained about the frequent absence of staff from the office and the lack of clear systems of responsibility and office pro-tocol, Beaumont and Rossi relished what they often described as their cre-ative chaos. To them, the firm was producing excellent results, clients were happy and knocking at the door, and this was all that mattered. By the fourth year, tensions were close to the breaking point. The four principals frequently found themselves in long meetings about office organ-ization, and the differences were as deep as ever. Walsh and Bridges argued for more system, and Beaumont and Rossi argued for the status quo. The differences were straining personal relations and were having an unfavor-able impact on life in the office generally. Many staff felt that Multicom was in danger of losing its special character and was no longer quite the same fun place at which to work. All four principals sensed this change, and they talked about it fre-quently. However, there was simply no consensus as to what should be done. As a result of general frustration, they began to break an unwritten but golden rule set in the early days of Multi com: that all four would always be involved in major policy decisions. Walsh and Bridges began to meet together and resolved that the only way forward was for them to exercise their authority and to insist that a reorganization of the office be initiated. They agreed to propose this at a meeting with Beaumont and Rossi the fol-lowing day. Walsh and Bridges were surprised. The idea produced little resistance from their two colleagues. It was almost as if it was expected. Beaumont and Rossi insisted that the decision should not be taken without a lot of thought because it represented a major departure. They reiterated their view that no change in office organization was necessary other than a streamlin-ing of a few financial procedures. They were by no means happy with the proposal, but it was clear that they werent going to fight it. The following week Walsh and Bridges called a meeting of all staff to outline their plans. In operational terms, these involved a clearer definition of job responsibilities, a more formalized procedure governing the exchange of staff between projects, and a closer control over the conditions under which staff were to be away from the office during business hours. A num-ber of other office procedures were also introduced. The meeting was unique in Multicoms history in tone and nature. For weeks there was talk about a rift among the four principals and about how winds of change were blowing through the firm. Some members of the staff welcomed the greater degree of structure; others resented the new developments. Staff continued to work hard at their jobs with the profes-sionalism they knew Multicom demanded, but everyone knew that things were not quiet the same. Multicom was no longer working-or playing- the Multicom way. Walsh and Bridges, however, were well pleased. They felt a lot more secure with the way things stood and could see time ahead when they would be able to take a lot of pressure off themselves and let the office run itself within the framework they had begun to develop. Beaumont and Rossi continued to work hard as usual, and their project teams were least affected by the new developments. Within a year, however, they had left Multicom and set up a new company of their own, taking a number of key staff and clients with them. Thanks to a large number of faithful clients, Multicom continued to produce sound financial results, but it gradually lost its reputation as a leading-edge agency. It could be relied on to produce good solid work but was, in the eyes of a number of disaffected clients, â€Å"uninspiring†. Beaumont and Rossi’s new firm, Media 2000, picked up many of these clients and, adopting the new organizational style pioneered at Multicom, re-created a fun business† employing eighty people The firm quickly established itself aa a talented and innovative agency. Beaumont and Rossi take satisfaction in the firm’s reputation and financial success and look back on their days with Multicom as â€Å"a great learning experience†. In retrospect, they view their differences with Walsh and Bridges as a part of a â€Å"Lucky break† that spurred them to find an even more lucrative and satisfying work situation.