Supplement | HBS Case Collection | May 2011 (Revised March 2013)

Marshall & Gordon: Designing an Effective Compensation System (B)

by Heidi K. Gardner and Kerry Herman

Abstract

CEO Kelly Browne wrestles with the design and roll-out of a new compensation system to promote the collaboration necessary for supporting her firm's new strategy. Marshall Gordon International, a global public relations (PR) firm, has recently expanded its service offering to include Executive Positioning, which requires significantly more teamwork, higher-level client interaction and more strategically-minded consultants than their traditional PR work. This "B" case focuses on the choices the firm needs to make about roll-out, including how to measure aspects of consultants' performance, what performance management systems and processes need to support the compensation system, and who should have decision rights about consultants' variable compensation.

Keywords: Globalization; Executive Compensation; Management; Organizational Culture; Performance; Groups and Teams; Behavior; Corporate Strategy; System;

Citation:

Gardner, Heidi K., and Kerry Herman. "Marshall & Gordon: Designing an Effective Compensation System (B)." Harvard Business School Supplement 411-099, May 2011. (Revised March 2013.)