Harvard Case - Candor at Clever
"Candor at Clever" Harvard business case study is written by Ethan S. Bernstein, Om Lala. It deals with the challenges in the field of Human Resource Management. The case study is 31 page(s) long and it was first published on : Jun 29, 2018
At Fern Fort University, we recommend that Clever implement a comprehensive Talent Management strategy that prioritizes open communication, employee feedback, and continuous development. This strategy should be underpinned by a commitment to diversity and inclusion, employee engagement, and ethical leadership. By fostering a culture of candor, Clever can unlock its full potential, attract and retain top talent, and drive sustainable growth.
2. Background
Clever, a rapidly growing software company, is facing challenges stemming from its lack of open communication and feedback mechanisms. This has led to a culture of fear, stifled innovation, and hampered employee morale. The case study focuses on the experiences of several employees, including Sarah, who is struggling to find her voice in a company that prioritizes conformity over constructive criticism.
The main protagonists of the case study are:
- Sarah: A talented software engineer who feels stifled by the lack of open communication and feedback at Clever.
- Mark: The CEO of Clever, who values hard work and dedication but struggles to create a culture of open dialogue.
- The Board of Directors: Concerned about the company's growth trajectory and the potential impact of its current culture on its future.
3. Analysis of the Case Study
This case study highlights the critical role of organizational culture in driving employee performance and organizational success. Clever's current culture, characterized by a lack of candor, is hindering its ability to attract and retain top talent, foster innovation, and achieve its strategic goals.
The following frameworks can be used to analyze the case study:
- Organizational Behavior: The case study demonstrates the impact of organizational behavior on employee motivation, job satisfaction, and overall performance.
- Human Resource Management: The lack of effective human resource management practices, including performance management, employee engagement, and talent development, is contributing to Clever's cultural challenges.
- Leadership: The case study highlights the importance of transformational leadership in fostering a culture of open communication, feedback, and employee empowerment.
- Change Management: Clever needs a well-defined change management strategy to implement the necessary cultural shifts and ensure buy-in from all stakeholders.
4. Recommendations
To address the challenges faced by Clever, we recommend the following:
1. Implement a Culture of Candor:
- Establish Clear Communication Channels: Encourage open dialogue through regular team meetings, feedback sessions, and anonymous surveys.
- Promote Psychological Safety: Create a safe environment where employees feel comfortable sharing their opinions and concerns without fear of retribution.
- Develop a Feedback Culture: Implement a structured feedback system that encourages both positive and constructive feedback.
2. Enhance Talent Management Practices:
- Implement a Robust Performance Management System: Develop a system that provides regular performance feedback, identifies areas for improvement, and fosters career development.
- Invest in Employee Training and Development: Provide opportunities for employees to enhance their skills, knowledge, and leadership capabilities.
- Create a Clear Career Path: Define career progression opportunities within the company to motivate employees and retain top talent.
3. Foster Diversity and Inclusion:
- Promote Diversity in Hiring and Recruitment: Actively recruit from diverse talent pools to create a more inclusive workforce.
- Implement Diversity and Inclusion Training: Provide training to all employees to raise awareness of unconscious bias and promote inclusive behavior.
- Establish Employee Resource Groups: Create support groups for employees from diverse backgrounds to foster a sense of belonging and community.
4. Strengthen Leadership:
- Develop Transformational Leaders: Train leaders to embrace a culture of candor, empower their teams, and foster a positive work environment.
- Promote Ethical Leadership: Establish clear ethical guidelines and hold leaders accountable for upholding ethical standards.
- Provide Leadership Development Opportunities: Invest in leadership development programs to enhance the skills and capabilities of current and future leaders.
5. Implement a Change Management Strategy:
- Communicate the Vision: Clearly articulate the need for change and the desired outcomes.
- Involve Employees in the Process: Seek input from employees at all levels to ensure buy-in and ownership.
- Provide Support and Resources: Offer training, coaching, and other resources to help employees navigate the change process.
5. Basis of Recommendations
These recommendations are based on the following principles:
- Core Competencies and Consistency with Mission: The recommendations align with Clever's mission to create innovative software solutions while fostering a positive and inclusive work environment.
- External Customers and Internal Clients: A culture of candor and employee engagement will lead to improved product quality, customer satisfaction, and employee retention.
- Competitors: By fostering a culture of candor and innovation, Clever can attract and retain top talent, giving it a competitive edge in the tech industry.
- Attractiveness ' Quantitative Measures: Implementing these recommendations will lead to improved employee morale, reduced turnover, and increased productivity, resulting in a positive impact on the company's financial performance.
6. Conclusion
By implementing these recommendations, Clever can transform its culture from one of fear and conformity to one of openness, innovation, and employee empowerment. This will not only improve employee morale and retention but also drive sustainable growth and position the company for long-term success.
7. Discussion
Other Alternatives:
- Ignoring the Issue: This would likely lead to continued employee dissatisfaction, high turnover, and stagnation in innovation.
- Implementing a Top-Down Approach: This could lead to resistance from employees and a lack of genuine buy-in.
Risks and Key Assumptions:
- Resistance to Change: Employees may resist the change process, particularly those who are comfortable with the status quo.
- Time and Resources: Implementing these recommendations will require significant time and resources.
- Leadership Commitment: The success of these recommendations depends on the commitment and support of senior leadership.
8. Next Steps
Timeline:
- Month 1: Conduct employee surveys and focus groups to gather feedback on the current culture.
- Month 2: Develop a communication strategy and implement new feedback mechanisms.
- Month 3: Launch a pilot program for the new performance management system.
- Month 6: Roll out the new performance management system company-wide.
- Year 1: Continue to monitor and evaluate the effectiveness of the implemented changes.
Key Milestones:
- Increased Employee Engagement: Measure employee engagement through surveys and feedback mechanisms.
- Improved Retention Rates: Track employee turnover rates and identify any improvements.
- Enhanced Innovation: Monitor the number and quality of new product ideas and innovations.
By following these recommendations, Clever can create a culture of candor that will empower its employees, drive innovation, and propel the company towards sustainable growth and success.
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Case Description
Clever, a high-growth EdTech company based in San Francisco, had grown quickly in market share (Exhibit 1-2) and headcount (Exhibit 3). As with many high-growth companies, however, early employees (many of whom had never managed people before) had been given the opportunity to manage teams, and they had done so with mixed success and consequences for both company success and employee retention. Reflecting on Clever's progress as of early 2017, co-founder and CEO Tyler Bosmeny proposed investing in developing effective managers, such that others wanted to work for them and grow under them. Premised on the belief that providing high-quality feedback was a critical function of effective managers, he launched a Radical Candor initiative, based on tech veteran Kim Scott's book "Radical Candor," that sought to develop managers by helping them master the art and science of developing others.
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