Case | HBS Case Collection | February 2008 (Revised August 2011)

Olympia Machine Company, Inc.

by Frank V. Cespedes and Benson P. Shapiro

Abstract

The management team of an industrial equipment supplier is debating the company's method of compensating salespeople. Different executives have offered different alternatives to the current method of straight salary plus expenses. Each option has different implications for business strategy, organization, control systems, and sales management requirements. As a result, the case raises issues and analytics relevant to topics such as aligning strategy and organization, strategy implementation, and cross-functional incentive systems as well as sales management.

Keywords: Governance Controls; Compensation and Benefits; Mission and Purpose; Salesforce Management; Motivation and Incentives; Business Strategy; Industrial Products Industry;

Citation:

Cespedes, Frank V., and Benson P. Shapiro. "Olympia Machine Company, Inc." Harvard Business School Case 708-490, February 2008. (Revised August 2011.)