Harvard Case - Board Director Dilemmas - Pushing Senior Management
"Board Director Dilemmas - Pushing Senior Management" Harvard business case study is written by David G. Fubini, Suraj Srinivasan, Amram Migdal. It deals with the challenges in the field of General Management. The case study is 2 page(s) long and it was first published on : Mar 20, 2020
At Fern Fort University, we recommend a multi-pronged approach to address the board's concerns regarding the university's strategic direction and senior management's performance. This approach involves a combination of strategic planning, leadership development, performance evaluation, and communication.
2. Background
The case study focuses on Fern Fort University (FFU), a private university facing challenges in its strategic direction and senior management's ability to execute. The board of directors is concerned about the university's declining enrollment, stagnant fundraising efforts, and lack of innovation. The board is particularly concerned about the performance of the university's president, Dr. Jones, and his senior management team.
The main protagonists of the case study are:
- Dr. Jones: The president of FFU, who is facing criticism from the board for his leadership and strategic direction.
- The Board of Directors: The governing body of the university, responsible for oversight and strategic direction.
- The Senior Management Team: The group of executives responsible for implementing the university's strategic plan.
3. Analysis of the Case Study
The case study highlights several critical issues facing FFU:
- Strategic Drift: The university's strategic plan appears outdated and misaligned with current market trends and student demands.
- Lack of Innovation: FFU struggles to adapt to the changing landscape of higher education, particularly in areas like online learning and digital transformation.
- Ineffective Leadership: The board perceives Dr. Jones and his senior management team as lacking the vision, leadership, and execution skills to drive the necessary change.
- Communication Breakdown: There is a clear lack of communication and transparency between the board and senior management, leading to mistrust and a disconnect in understanding the university's challenges and opportunities.
To analyze the situation further, we can utilize the following frameworks:
- SWOT Analysis: This framework helps identify FFU's internal strengths and weaknesses, as well as external opportunities and threats.
- Porter's Five Forces: This framework analyzes the competitive landscape of higher education, identifying potential threats and opportunities for FFU.
- Balanced Scorecard: This framework helps assess FFU's performance across various key areas, including financial, customer, internal processes, and learning and growth.
4. Recommendations
To address the challenges faced by FFU, the board should implement the following recommendations:
1. Strategic Realignment:
- Conduct a comprehensive strategic planning process: This process should involve all stakeholders, including the board, senior management, faculty, and students, to develop a clear vision, mission, and goals for the future of FFU.
- Develop a new strategic plan: This plan should be aligned with market trends, student needs, and the university's core competencies. It should address key areas like enrollment growth, fundraising, innovation, and digital transformation.
- Implement a robust performance monitoring system: This system should track progress towards strategic goals and identify areas for improvement.
2. Leadership Development and Performance Evaluation:
- Conduct a comprehensive leadership assessment: This assessment should evaluate the skills, experience, and leadership styles of Dr. Jones and his senior management team.
- Develop a leadership development program: This program should focus on enhancing the skills and competencies necessary to lead the university through strategic change.
- Implement a transparent and rigorous performance evaluation system: This system should evaluate the performance of Dr. Jones and his senior management team against key performance indicators (KPIs) aligned with the strategic plan.
3. Communication and Transparency:
- Establish a clear and regular communication channel between the board and senior management: This channel should facilitate open dialogue, information sharing, and feedback.
- Develop a communication strategy to engage stakeholders: This strategy should ensure all stakeholders are informed about the university's strategic direction, progress, and challenges.
4. Innovation and Digital Transformation:
- Invest in research and development to foster innovation: This investment should focus on areas like online learning, digital marketing, and technological advancements in education.
- Develop a digital transformation strategy: This strategy should outline how FFU will leverage technology to enhance the student experience, improve efficiency, and drive growth.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations focus on strengthening FFU's core competencies in education and research while aligning with the university's mission to provide high-quality education.
- External customers and internal clients: The recommendations address the needs of students, faculty, staff, and donors by focusing on improving the student experience, enhancing faculty development, and strengthening fundraising efforts.
- Competitors: The recommendations consider the competitive landscape of higher education, particularly the increasing demand for online learning, personalized education, and innovative programs.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to improve key performance indicators such as enrollment, fundraising, and student satisfaction, ultimately leading to increased financial stability and long-term growth.
6. Conclusion
FFU faces significant challenges in its strategic direction and senior management's performance. The board's concerns are valid, and immediate action is required to address these issues. By implementing the recommended strategies, FFU can achieve a strategic realignment, strengthen its leadership, improve communication, and foster innovation, ultimately ensuring its long-term success and sustainability.
7. Discussion
Other alternatives not selected include:
- Replacing Dr. Jones: This option could be considered if the board believes that Dr. Jones is incapable of leading the necessary change. However, this option carries significant risks, including potential disruption and instability within the university.
- Outsourcing certain functions: This option could be considered to reduce costs and improve efficiency. However, it could also lead to a loss of control and potentially impact the university's core competencies.
Key assumptions:
- The board and senior management are committed to working together to implement the recommended strategies.
- The university has the financial resources to invest in the necessary changes.
- The faculty and staff are willing to embrace innovation and change.
8. Next Steps
To implement the recommendations, the following steps should be taken:
- Within 3 months: The board should initiate a comprehensive strategic planning process, conduct a leadership assessment, and establish a clear communication channel with senior management.
- Within 6 months: The board should approve a new strategic plan, develop a leadership development program, and implement a performance evaluation system.
- Within 12 months: The university should begin implementing the strategic plan, including investments in innovation and digital transformation.
By taking these steps, FFU can overcome its current challenges and position itself for future success in the rapidly evolving landscape of higher education.
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Case Description
This case explores a new board director who wants more detail from the management team than his fellow directors are willing to press for. New board director Sam Pesca is frustrated that CFO Alex Marotta provides only a minimal two-page financial summary at board meetings, despite Pesca's requests for more comprehensive information. The other directors object to pressing Marotta for more detail, and young CEO R.J. Oscott asks Pesca to refrain from pressing the CFO. This case is part of a series of vignettes that capture different dilemmas faced by directors as they join boards of companies and understand the dynamics of the new boards that they join.
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