In 1997, AC partners voted unanimously to split off entirely and filed a formal arbitration claim with the International Chamber of Commerce. Eventually AC was allowed to separate and form a new independent company, Accenture. AA partners suffered a significant financial setback when the arbitrator ruled that AA would not receive a $14 billion payment it had expected from AC upon separation.
In 1998, Samek became the managing partner at Arthur Andersen. Among his initial moves was to formulate a new strategy that included advice on how partners should empathize with clients. Samek surprised many of the auditing partners when he announced his new "2X" performance evaluation system. Partners were expected to bring in two times their revenues in work outside their area of practice. If an auditor brought the firm $2 million a year in auditing fees, he was expected to bring in an additional $4 million in fees from nonaudit services, such as tax advice and technology services. Partners who achieved this standard were rewarded, while others were penalized and in some cases dismissed from the …show more content…
|Performance evaluation |
|Rewards |
|Task 2: Suggested changes to Arthur Andersen’s organisational architecture |
|Balance of the three elements |
|Compatibility with soft culture |
|Task 3: Discussion of Arthur Andersen’s budgetary approach |
|Behavioural aspects of budgeting |
|Conclusion (a very brief summary of your report’s conclusions - approx 60 words) |
| |
|Reference List