Harvard Case - Built on Grit: h.wood and John Terzian
"Built on Grit: h.wood and John Terzian" Harvard business case study is written by Nathanael J Fast, Benjamin Rostoker. It deals with the challenges in the field of Organizational Behavior. The case study is 12 page(s) long and it was first published on : May 22, 2017
At Fern Fort University, we recommend that John Terzian and h.wood Group focus on a strategic growth plan that prioritizes organizational culture, leadership development, and employee engagement to foster a sustainable and scalable business model. This plan should involve a combination of change management, diversity and inclusion, and employee empowerment initiatives, all while maintaining a strong emphasis on innovation and customer experience.
2. Background
The case study focuses on John Terzian, a successful entrepreneur and restaurateur who built h.wood Group from a single restaurant to a multi-faceted hospitality empire. The company's success is attributed to Terzian's leadership style, which emphasizes grit, entrepreneurship, and building strong relationships. However, the case also highlights challenges faced by h.wood Group, including rapid expansion, managing diverse teams, and maintaining a consistent brand experience across multiple locations.
The main protagonists of the case study are:
- John Terzian: Founder and CEO of h.wood Group, known for his strong leadership and entrepreneurial spirit.
- The h.wood Group team: A diverse group of individuals contributing to the success of the company, including managers, chefs, bartenders, and staff.
- The customers: The target audience for h.wood Group's restaurants and nightlife venues, seeking unique experiences and high-quality service.
3. Analysis of the Case Study
The case study can be analyzed through the lens of organizational behavior, leadership, and change management.
- Organizational Behavior: h.wood Group's success is largely attributed to its strong organizational culture, characterized by entrepreneurship, teamwork, and a focus on customer satisfaction. However, rapid expansion has created challenges in maintaining this culture across multiple locations.
- Leadership: John Terzian's leadership style is characterized by transformational leadership, inspiring and motivating his team to achieve ambitious goals. However, as the company grows, Terzian needs to delegate more responsibility and develop a leadership pipeline to ensure long-term sustainability.
- Change Management: h.wood Group is experiencing significant growth, requiring change management strategies to adapt to new challenges and opportunities. This includes implementing new systems, processes, and technologies to manage operations effectively.
4. Recommendations
To address the challenges faced by h.wood Group, we recommend the following:
- Develop a formal leadership development program: Invest in training and development programs for existing and aspiring leaders, focusing on leadership styles, emotional intelligence, conflict resolution, and change management. This will help ensure a strong leadership pipeline and maintain a consistent culture across the organization.
- Implement a robust employee engagement strategy: Conduct regular employee surveys to gather feedback on job satisfaction, work-life balance, and organizational commitment. Implement initiatives to improve employee engagement, such as employee recognition programs, flexible work arrangements, and opportunities for professional development.
- Embrace diversity and inclusion: Promote a culture of diversity and inclusion by actively recruiting and retaining diverse talent. Implement policies and practices that ensure equal opportunities for all employees, regardless of gender, race, ethnicity, or sexual orientation.
- Formalize organizational structure and processes: Implement clear organizational structures and processes to ensure efficient communication, collaboration, and decision-making. This will help manage rapid growth and maintain consistency across different locations.
- Invest in technology and analytics: Utilize technology and data analytics to improve operational efficiency, track customer preferences, and optimize marketing efforts. This will help h.wood Group stay ahead of the competition and adapt to evolving customer expectations.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with h.wood Group's core competencies in hospitality, customer experience, and entrepreneurship. They also support the company's mission to create unique and memorable experiences for its customers.
- External customers and internal clients: The recommendations address the needs of both external customers and internal clients. By focusing on employee engagement, diversity and inclusion, and leadership development, the company can create a more positive and productive work environment, which in turn will lead to better customer service.
- Competitors: The recommendations help h.wood Group stay ahead of the competition by fostering innovation, employee empowerment, and customer-centricity.
- Attractiveness - quantitative measures: The recommendations are expected to lead to improved employee retention, customer satisfaction, and financial performance. These improvements can be measured through metrics such as employee turnover rate, customer satisfaction scores, and revenue growth.
6. Conclusion
By implementing these recommendations, h.wood Group can navigate its growth challenges and build a sustainable and scalable business model. By focusing on organizational culture, leadership development, and employee engagement, the company can create a thriving environment that attracts and retains top talent, fosters innovation, and delivers exceptional customer experiences.
7. Discussion
Other alternatives not selected include:
- Outsourcing operations: This could be a cost-effective solution for managing rapid growth, but it might compromise control over the brand experience.
- Acquiring existing businesses: This could provide access to new markets and resources, but it also carries risks associated with integrating different cultures and operations.
The key assumptions of our recommendations are:
- John Terzian's commitment to change: The success of these recommendations depends on Terzian's willingness to embrace new approaches and delegate more responsibility.
- The ability to attract and retain top talent: The company needs to be able to attract and retain talented individuals to implement these initiatives effectively.
8. Next Steps
The following timeline outlines key milestones for implementing the recommendations:
- Year 1:
- Q1: Develop and implement a leadership development program.
- Q2: Conduct employee engagement surveys and implement initiatives to improve engagement.
- Q3: Implement diversity and inclusion initiatives.
- Q4: Formalize organizational structure and processes.
- Year 2:
- Q1: Invest in technology and analytics to improve operations and customer experience.
- Q2: Continuously monitor and evaluate the effectiveness of implemented initiatives.
- Q3: Adjust strategies based on feedback and data analysis.
- Q4: Continue to invest in leadership development, employee engagement, and diversity and inclusion initiatives.
By following these recommendations and taking a strategic approach to growth, h.wood Group can continue to build on its success and create a lasting legacy in the hospitality industry.
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Case Description
John Terzian is a rising nightclub owner and restaurateur in Los Angeles, CA. As a co-founder and CEO of The h.wood Group, he has cultivated the success of each new venue through stubborn grit, a trusting nature, and reliance on personal touch. This highly involved, time-intensive approach has attracted A-list celebrities. However, as The h.wood Group begins to scale outside Los Angeles, Terzian must navigate the use his personal attributes as strengths while preventing them from turning into pitfalls.
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