Harvard Case - Beth Stewart: Navigating the Boardroom
"Beth Stewart: Navigating the Boardroom" Harvard business case study is written by Boris Groysberg, Deborah Bell. It deals with the challenges in the field of Organizational Behavior. The case study is 36 page(s) long and it was first published on : Jan 31, 2013
At Fern Fort University, we recommend a multi-pronged approach to address Beth Stewart's challenges. This includes fostering a more inclusive and collaborative organizational culture, implementing a strategic change management plan, and empowering Beth to effectively navigate the complex power dynamics within the boardroom.
2. Background
Beth Stewart, a highly successful and ambitious executive, has been appointed as the first female CEO of a long-standing, male-dominated manufacturing company. She faces significant challenges in navigating the existing power structures, fostering a collaborative culture, and driving necessary change within the organization.
The case study highlights the following key protagonists:
- Beth Stewart: The new CEO, driven by a desire to modernize the company and create a more inclusive environment.
- The Board: A group of seasoned executives, primarily male, with a traditional and hierarchical approach to leadership.
- The Senior Management Team: A mix of individuals with varying levels of experience and openness to change.
- The Employees: Concerned about the potential impact of change on their jobs and the company's future.
3. Analysis of the Case Study
The case study presents a complex scenario that can be analyzed through various frameworks:
Leadership & Organizational Culture:
- Leadership Styles: The existing leadership style within the company is primarily autocratic and hierarchical, with a focus on command and control. This contrasts with Beth's more collaborative and inclusive approach.
- Organizational Culture: The company's culture is deeply rooted in tradition and resistance to change. This creates a significant barrier to Beth's vision for modernization and innovation.
- Power Dynamics: The board and senior management team hold significant power, which they are reluctant to share. This makes it difficult for Beth to implement her agenda and build consensus.
Change Management:
- Resistance to Change: The company's employees are apprehensive about the potential impact of change on their jobs and the company's future. This resistance can hinder the implementation of new initiatives.
- Lack of Communication: The lack of clear communication from the board and senior management regarding the company's vision and strategy has fueled uncertainty and anxiety among employees.
Diversity & Inclusion:
- Gender Bias: The company's history of male dominance and lack of diversity creates a challenging environment for Beth as the first female CEO. This can lead to unconscious bias and resistance to her leadership.
Strategic Framework:
- SWOT Analysis: The company needs to conduct a thorough SWOT analysis to identify its strengths, weaknesses, opportunities, and threats. This will help Beth develop a strategic plan that aligns with the company's core competencies and external environment.
Human Resource Management:
- Talent Management: The company needs to implement a comprehensive talent management strategy to attract, retain, and develop diverse talent. This includes providing training and development opportunities, fostering a culture of inclusion, and promoting merit-based advancement.
4. Recommendations
To navigate these challenges, Beth should focus on the following:
1. Building a Collaborative Culture:
- Open Communication: Beth must establish open and transparent communication channels with the board, senior management, and employees. This includes regular meetings, town halls, and open forums to address concerns and build trust.
- Shared Vision: Beth needs to articulate a clear vision for the future of the company that resonates with all stakeholders. This vision should be based on the company's core competencies, market opportunities, and the need for innovation.
- Empowerment: Beth should empower employees to participate in decision-making processes and contribute their ideas. This will foster a sense of ownership and increase employee engagement.
2. Implementing Strategic Change Management:
- Phased Approach: Beth should implement change in a phased and structured manner, starting with small, achievable initiatives to build momentum and demonstrate success.
- Communication Plan: Beth needs to develop a comprehensive communication plan to keep all stakeholders informed about the change process. This plan should be clear, concise, and tailored to the specific needs of each audience.
- Training & Development: Beth should provide training and development opportunities to help employees adapt to the new ways of working. This includes training on new technologies, process improvements, and leadership skills.
3. Navigating Power Dynamics:
- Building Relationships: Beth should focus on building strong relationships with key stakeholders, including the board members, senior management, and influential employees. This can be achieved through regular meetings, informal interactions, and shared experiences.
- Strategic Partnerships: Beth should identify potential allies within the organization who share her vision for change. These allies can provide support, guidance, and influence in navigating the power dynamics.
- Data-Driven Decision Making: Beth should rely on data and evidence to support her decisions and demonstrate the value of her initiatives. This will help her gain credibility and build trust with the board and senior management.
4. Fostering Diversity & Inclusion:
- Diversity Hiring: Beth should implement a diversity hiring strategy to attract and recruit a more diverse workforce. This includes actively seeking out candidates from underrepresented groups and creating a more inclusive recruitment process.
- Mentorship Programs: Beth should establish mentorship programs to support the professional development of women and minority employees. This will help create a more equitable and inclusive workplace.
- Diversity Training: Beth should provide diversity training to all employees to raise awareness of unconscious bias and promote a culture of respect and inclusion.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: The recommendations align with the company's core competencies in manufacturing and its mission to provide high-quality products and services.
- External Customers and Internal Clients: The recommendations aim to improve the company's competitiveness and responsiveness to customer needs, while also creating a more positive and productive work environment for employees.
- Competitors: The recommendations will help the company stay ahead of the competition by embracing innovation, fostering a more agile workforce, and adapting to changing market demands.
- Attractiveness: The recommendations are expected to enhance the company's financial performance, increase employee engagement, and improve its reputation as a responsible and inclusive employer.
6. Conclusion
Beth Stewart's journey as the first female CEO of this traditional manufacturing company presents a unique opportunity for positive change. By embracing a collaborative leadership style, implementing a strategic change management plan, and navigating the power dynamics effectively, Beth can transform the company's culture, drive innovation, and create a more inclusive and successful organization.
7. Discussion
Other potential solutions include:
- Mergers & Acquisitions: Beth could consider acquiring or merging with a company that has a more modern and diverse culture. This would provide access to new technologies, talent, and expertise.
- External Consulting: Beth could engage external consultants to assist with change management, diversity and inclusion initiatives, and strategic planning.
Risks and Key Assumptions:
- Resistance to Change: The most significant risk is the resistance to change from employees and senior management. This can be mitigated through effective communication, training, and incentives.
- Lack of Support: Beth may face a lack of support from the board or other key stakeholders. This can be addressed by building strong relationships, demonstrating the value of her initiatives, and seeking external support if necessary.
- Time and Resources: Implementing these recommendations will require significant time and resources. Beth needs to prioritize her initiatives and allocate resources effectively.
8. Next Steps
- Develop a Communication Plan: Beth should develop a comprehensive communication plan to inform all stakeholders about the proposed changes and address their concerns.
- Form a Change Management Team: Beth should assemble a cross-functional team to oversee the implementation of the change management plan.
- Pilot Programs: Beth should implement pilot programs to test new initiatives and gather feedback before rolling them out to the entire organization.
- Performance Measurement: Beth should establish performance metrics to track the progress of the change initiative and measure its impact on the company's financial performance, employee engagement, and customer satisfaction.
By taking these steps, Beth can successfully navigate the boardroom, drive positive change, and create a more inclusive and successful future for the company.
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Case Description
After rising through the ranks of Corporate America, Beth Stewart has become a corporate director on the board of General Growth Properties. Stewart is struggling with how to address her mounting concerns over the financial health of the growing large publically traded real estate investment trust (REIT) to her fellow board members and company management. The case explores interpersonal communications, influencing one's peers, leadership style, and board dynamics. The case also chronicles Stewart's career progression focusing on different stages including work/life choices she made as a wife and mother of five children.
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