Harvard Case - If We Build It They Will Come: The Role of Governance in Expansion Decisions at Crandall University
"If We Build It They Will Come: The Role of Governance in Expansion Decisions at Crandall University" Harvard business case study is written by Robert MacDonald, Heather Steeves. It deals with the challenges in the field of General Management. The case study is 26 page(s) long and it was first published on : Dec 1, 2015
At Fern Fort University, we recommend that Crandall University proceed with the expansion project, but with a strong focus on strategic planning, corporate governance, and change management. This approach will ensure the project aligns with the university's mission, addresses the evolving needs of students and the market, and minimizes potential risks associated with rapid growth.
2. Background
Crandall University, a small private university in New Brunswick, Canada, faces a critical decision: whether to expand its facilities and programs to attract more students. The university's leadership recognizes the need for growth to remain competitive and address the changing demographics of potential students. However, concerns about financial feasibility, resource allocation, and maintaining the university's unique identity during expansion are present.
The case study focuses on the university's governance structure and its capacity to manage the complex challenges of expansion. The main protagonists are Dr. Bruce Chapman, the university president, and the Board of Governors, responsible for overseeing the university's strategic direction and financial health.
3. Analysis of the Case Study
This case study can be analyzed through the lens of strategic planning, corporate governance, and change management.
Strategic Planning:
- SWOT Analysis: Crandall University possesses strengths like a strong reputation, dedicated faculty, and a close-knit community. However, it faces weaknesses like limited resources, a small student body, and a remote location. Opportunities lie in the growing demand for higher education and the potential to attract international students. Threats include increasing competition, declining government funding, and the need to adapt to technological advancements.
- Growth Strategy: The expansion project aligns with Crandall's mission to provide a high-quality education rooted in Christian values. However, the strategy needs to be carefully defined, considering the university's core competencies and the potential impact on its culture.
- Market Analysis: Crandall needs to conduct thorough market research to understand the needs and preferences of potential students, identify competitor offerings, and assess the feasibility of attracting students from diverse backgrounds and locations.
Corporate Governance:
- Board of Governors: The Board plays a crucial role in overseeing the expansion project. It needs to ensure transparency, accountability, and alignment with the university's mission and values.
- Decision-Making Processes: Clear and transparent decision-making processes are essential, involving key stakeholders like faculty, staff, and students.
- Risk Assessment: The Board must conduct a comprehensive risk assessment, identifying potential challenges like financial instability, operational inefficiencies, and cultural clashes.
Change Management:
- Organizational Culture: Crandall's strong culture is a valuable asset. The expansion project should be implemented in a way that preserves this culture while adapting to the changing needs of a larger institution.
- Communication and Engagement: Open and transparent communication with all stakeholders is essential to build trust and support for the expansion project.
- Talent Management: The university needs to develop a robust talent management strategy to attract and retain qualified faculty and staff to support the growing institution.
4. Recommendations
To ensure a successful expansion, Crandall University should implement the following recommendations:
- Develop a Comprehensive Strategic Plan: This plan should outline the university's vision, mission, goals, and objectives for the expansion project. It should include a detailed market analysis, financial projections, and a clear roadmap for implementation.
- Strengthen Corporate Governance: The Board of Governors should establish clear roles and responsibilities, enhance transparency and accountability, and implement robust risk management practices.
- Implement a Change Management Framework: This framework should focus on communication, engagement, and training to ensure a smooth transition for all stakeholders. It should address potential cultural challenges and ensure the university's core values are preserved.
- Conduct a Feasibility Study: This study should assess the financial viability of the expansion project, considering potential revenue streams, operating costs, and return on investment.
- Develop a Marketing Strategy: The university needs to develop a targeted marketing strategy to attract new students, emphasizing its unique strengths and value proposition.
- Invest in Technology and Infrastructure: Crandall should invest in technology and infrastructure to support the growing student body and enhance the learning experience.
- Build Partnerships: The university should explore strategic partnerships with businesses, organizations, and other institutions to enhance its offerings and expand its reach.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Crandall's core competencies in providing a high-quality education rooted in Christian values. The expansion project should be implemented in a way that strengthens these core competencies and reinforces the university's mission.
- External Customers and Internal Clients: The recommendations consider the needs of potential students, faculty, staff, and other stakeholders. The expansion project should be designed to meet the needs of all stakeholders and enhance their experience.
- Competitors: The recommendations acknowledge the competitive landscape and aim to differentiate Crandall from its competitors by leveraging its unique strengths and developing a compelling value proposition.
- Attractiveness: The recommendations consider the financial feasibility of the expansion project, including potential revenue streams, operating costs, and return on investment.
6. Conclusion
By implementing these recommendations, Crandall University can successfully navigate the challenges of expansion while preserving its unique identity and achieving its strategic goals. The expansion project has the potential to strengthen the university's position in the higher education market, attract new students, and ensure its continued success for years to come.
7. Discussion
Other Alternatives:
- Status Quo: Crandall could choose to maintain its current size and focus on enhancing its existing programs and services. However, this approach could limit its growth potential and make it more difficult to compete in the long term.
- Merger or Acquisition: Crandall could consider merging with or acquiring another institution. This approach could provide access to additional resources and expertise but also presents significant challenges in terms of integration and cultural compatibility.
Risks and Key Assumptions:
- Financial Viability: The expansion project relies on the assumption that the university can generate sufficient revenue to cover its increased operating costs.
- Market Demand: The project assumes that there is sufficient demand for the expanded programs and services in the target market.
- Successful Integration: The project assumes that the university can successfully integrate the new facilities, programs, and students into its existing infrastructure and culture.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Expansion | Increased student enrollment, expanded program offerings, enhanced reputation | Increased costs, potential cultural clashes, challenges in managing growth |
| Status Quo | Stability, preservation of existing culture | Limited growth potential, difficulty competing in the long term |
| Merger/Acquisition | Access to additional resources, potential for synergies | Challenges in integration, potential cultural clashes |
8. Next Steps
- Form a Task Force: Create a task force composed of key stakeholders to oversee the implementation of the expansion project.
- Develop a Detailed Implementation Plan: Outline the specific steps, timelines, and resources required for each phase of the project.
- Secure Funding: Identify and secure the necessary funding for the expansion project.
- Communicate with Stakeholders: Regularly communicate with all stakeholders to keep them informed of the project's progress and address any concerns.
- Monitor and Evaluate: Regularly monitor the project's progress and evaluate its impact on the university's overall performance.
By taking these steps, Crandall University can ensure a successful expansion that strengthens its position in the higher education market and prepares it for future success.
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Case Description
During the first decade of the 21st Century Crandall University, a private Christian liberal arts university in Moncton, NB, Canada experienced significant growth in terms of enrolment and governance structure. If We Build It They Will Come: The Role of Governance in Expansion Decisions at Crandall University examines the dilemma faced by one member of the University's Board of Governors as he seeks to determine how to deal with decisions made by the Board that he believes are not in keeping with the requirements of sound policy governance. The narrative traces the history of the adoption of the Carver model at the University, and examines the role played by the Board in a critical capital expansion decision in 2010. The reader is invited to consider the roles and responsibilities of board members both corporately and individually, and to evaluate the difference between fulfilling the mandate to govern and meddling in the affairs of management.
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