Caitlins Challenge
By Deborah Kolb
For the last five years, Caitlin Elliott has been the Director of Client Relations at Microenterprises
Incorporated (MI). In that role, she is responsible for managing and serving current clients, and
identifying account expansion opportunities. She has earned a solid reputation as a personable,
innovative leader who manages well, sells well, and does whatever it takes to make the
organization successful. Her colleagues see her as someone who will jump in and contribute
whenever she is needed.
Four months ago, Martin Block, VP of Client Advisory Services, left MI. As VP of CAS, Block
managed MIs large consulting engagements, bringing in new business, and assigning consulting
teams based on clients needs. Since Marty left, Caitlin has been unofficially filling in for him in
addition to performing her own Director responsibilities. She has been putting in 80 hours
minimum per week. While Caitlin is great at negotiating with colleagues and clients, she has
trouble negotiating for herself. Overworked and underpaid, she still hesitates to use her additional
workload to justify more money and the title that goes with it. She knows that others with less
responsibility are paid more than she is and that eats at her.
Caitlins history at MI has not prepared her for the challenge she now faces. Caitlin was hired out of
business school as an analyst. A great opportunity, she jumped at the chance and never bargained
over salary or benefits or even questioned what her opportunities would be. Successful at each of
her assignments, she adapted well to the competitive fast-paced environment of the firm,
developing a good reputation for her client service skills. But for each assignment she was offered,
she always said yes, and never questioned the title, salary, support, or working conditions that
went along with it. She just took what came along and did not think much about it. But with
Martys departure, things have changed.
This past month, Caitlin brought in a major new client, Salloway and Diamond, which will likely
result in an increase in revenues of at least 10% for MI over their previous years earnings. Caitlin
has decided that she wants Martys old job, VP of CAS. She has been essentially in an acting role
and wants it to be official. She has always been on good terms with George, the CEO, helping him
out when he needed her help on special projects.
Deciding the time is right, Caitlin plans to see George about a promotion to the VP position with an
increase in pay that the job merits. She also aims to get a bonus for bringing in Salloway and
Diamant; VP-level employees typically receive these bonuses, but directors do not. As she prepares
for her meeting, Caitlin recalls a salary negotiation she had with George about a year ago. Although
she ultimately got a modest raise, the negotiations were difficult and she felt she deserved more.
George praised her, telling her how much he valued her contributions to the organization, but
when she raised the salary issue he became an gray and accused her of being inconsiderate and
irresponsible for bringing the compensation issue up at that time. Caitlin didnt press on the
comment, so she is unsure if the bad timing was due to a client problem that surfaced earlier that
day, the fact that company earnings had dipped last year, or because George hadnt expected her to
ask for a raise. In any event, Caitlin did not want this situation to be repeated.
Please see reverse side for further directions.
Pair up with a neighbor and decide who will act as Caitlin and who will act as George (this is going
to be a very short role play in your seats, followed by a longer class discussion). Spend a few
minutes considering the questions of your role below.
Questions if you are Caitlin:
What would you see as your BATNA? What are your sources of leverage? What options would
satisfy you? How would you open the negotiation with George?
Questions if you are George:
What are your interests in the situation? What reasons might you have for resisting Caitlins
requests? (brainstorm based on what you know from the case and your general experience)
What arguments would you use to push back on her and what options would you counter with?
You have a lot of latitude to decide how George might react, but dont take the easy route of giving
Caitlin everything she wants
