Agero: Enhancing Capabilities for Customers Harvard Case Solution & Analysis

This case exemplifies the importance of selecting a primary customer as the basis for organization design. Cross Country Group managers adjusted performance measures and resource allocation, organization design over the time to convert Cross Country Group from the opportunistic family corporation into a refined sector leader. Cross Country (renamed Agero in 2011) operated call centers that coordinated with a large number of insignificant, independent towing companies- Cross Country’s “service provider network” to provide assistance amenities, comprising vehicle towing and tire alterations, to the motorists encompassed by the automakers warranties and insurer technicalities. The instance describes the development of Cross Country from 1972 to 2012 in three periods. This allows students to, at various periods, grapple with defining Cross Country's business (what company is it, and it ought to be in?) and its main customer (vehicle manufacturers and insurance companies? motorists? service providers?). The responses to such inquiry have essential consequences for organization design. During the very first period, from 1972 to 1998, the company was developed by founder Sidney Wolk through personal relationships with customers. An enthusiastic entrepreneur, his way of growth -secure customers first, figure out the way to make money later-was unexpectedly successful, if occasionally disorganized.

Confronting an escalating commoditized marketplace, in the year 1998 Wolk employed professional manager who invested in sophisticated data analytics and implemented formal performance management systems. From 1998 to 2007 (stage two) these investments allowed the Cross Country to quantify service providers consequences on the motorist pleasure, monitor the service providers output and launch programs to fortify top-performing service providers' faithfulness to Cross Country. In the third phase from 2008-2012, the Cross Country entered the high-tech telematic/linked-vehicle business, invested in additional innovations to reinforce its service provider network, and rebranded itself as "Agero." Wolk and his team believed Cross Country had "more driver information than just about any other firm." The case scenario concludes with key choices for the foreseeable future.

PUBLICATION DATE: February 21, 2013 PRODUCT #: 113001-HCB-ENG

This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT

Share This


Save Up To




Register now and save up to 30%.