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Case Study - Booz-Allen & Hamilton

In practical terms , responsibility of the profit and loss account was divided between nine responsibility centers based on geography , function and industry . Geographically , responsibilities were divided between the Atlantic segment , the Asia-Pacific-Japan (APJ ) segment and the Latin America segment . All of these segments contained specialist of each of the following functions : strategy , operations and information technology . However , the APJ and Latin America segment were considered to small to foster their own separate administrative structures , thus these function based responsibility centers do not appear within the segments

One of the key

features of the vision was to divide the Atlantic segment into five responsibility centers based on industry practices . The five-industry-based segments are : Financial Services and Health Care industries , Engineering and Manufacturing industries , Energy , Chemicals and Pharmaceuticals industries , Marketing-intensive industries , and Communications , Computing and Electronic industries

A part-time partner-in-charge who had the support of a full-time group director of operations (GDO ) leads each of the nine segments above . They were responsible for individual engagements . The structure were designed based on professional communities , which means that the goal of the vision is to have people of the same professional community to work with one another to produce the best services to clients . Within this vision there are also details about how staff performances are measured and how the entire strategy should help the company to solve problems . Some of the important points are

III .2 .1 Compensation

Under the old structure , compensation and incentive received by partners were according to the amount of new engagement they created and the revenue that they obtain from those engagements . Furthermore , using the old structure , performance measurements of non-partners were performed by a single superior they work under . These evaluation systems were all changed by the new structure

Under the new structure , partners are no longer...

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