Harvard Case - Buro Happold
"Buro Happold" Harvard business case study is written by Robert G. Eccles, Kerry Herman. It deals with the challenges in the field of Organizational Behavior. The case study is 33 page(s) long and it was first published on : Apr 6, 2009
At Fern Fort University, we recommend that Buro Happold implement a strategic plan focused on fostering a collaborative, inclusive, and innovative culture that supports its ambitious growth goals. This plan should prioritize talent development, leadership training, and improved communication across all levels of the organization. By embracing these changes, Buro Happold can unlock the full potential of its workforce, attract and retain top talent, and maintain its reputation as a leading global engineering consultancy.
2. Background
Buro Happold, a global engineering consultancy, faces a critical juncture. The company has experienced significant growth, expanding its global footprint and diversifying its service offerings. However, this growth has also brought challenges, including potential cultural fragmentation, communication breakdowns, and a need to adapt its leadership style to a more decentralized structure. The case study highlights the tension between maintaining a strong, unified culture while accommodating the needs of a growing and increasingly diverse workforce.
The main protagonists in the case study are:
- The CEO: Concerned about maintaining a strong, unified culture amidst rapid growth and expansion.
- The Board of Directors: Focused on driving growth and profitability, potentially at the expense of cultural cohesion.
- The Employees: Experiencing a shift in the company's culture, with concerns about communication, transparency, and career development opportunities.
3. Analysis of the Case Study
To comprehensively analyze the case, we can utilize the Organizational Development (OD) framework, which focuses on improving organizational effectiveness through planned interventions. This framework allows us to examine the interplay of various factors impacting Buro Happold's current situation:
- Organizational Culture: The case highlights a shift in Buro Happold's culture from a close-knit, collaborative environment to a more fragmented one. This shift is due to rapid growth, geographic expansion, and the introduction of new leadership styles. The company needs to address this cultural shift proactively to ensure a cohesive and inclusive environment.
- Leadership: The case suggests a need for leadership development programs that focus on empowering managers to adapt to a more decentralized structure and foster collaboration across teams. This includes training in cross-functional management, conflict resolution, and building a culture of transparency and communication.
- Communication: The case highlights communication breakdowns between leadership and employees, leading to decreased employee engagement and potential dissatisfaction. Implementing clear communication channels, regular feedback mechanisms, and open dialogues can address this issue.
- Talent Management: Buro Happold's growth strategy requires attracting and retaining top talent. This necessitates developing robust hiring and recruitment processes, providing competitive compensation and benefits, and creating a culture that values diversity and inclusion.
- Organizational Structure and Design: As the company grows, its current organizational structure may become inefficient. A review of the structure is necessary to ensure it supports collaboration, innovation, and efficient decision-making across different departments and geographic locations.
4. Recommendations
To address the challenges identified in the case, Buro Happold should implement the following recommendations:
1. Culture Transformation Initiative:
- Develop a Shared Vision: Engage all stakeholders in defining a clear, unified vision for the future of Buro Happold, emphasizing its core values of collaboration, innovation, and client-centricity.
- Foster Inclusive Communication: Implement open communication channels, regular town hall meetings, and employee surveys to foster transparency and address concerns.
- Promote Cross-Cultural Understanding: Develop programs that promote cross-cultural awareness and understanding, fostering collaboration and respect across diverse teams.
2. Leadership Development:
- Leadership Training: Develop comprehensive leadership development programs that focus on fostering a collaborative, inclusive, and empowering leadership style. This training should include modules on cross-functional management, conflict resolution, and building a culture of trust and transparency.
- Mentorship Programs: Implement mentorship programs that pair experienced leaders with emerging talent, providing guidance and support for their career development.
3. Talent Management:
- Strategic Hiring: Develop a robust hiring and recruitment process that attracts and retains diverse, high-performing talent. This includes creating a strong employer brand, promoting employee referral programs, and utilizing social media platforms to reach a wider pool of candidates.
- Compensation and Benefits: Offer competitive compensation and benefits packages that reflect the company's commitment to employee well-being and career development.
4. Organizational Structure and Design:
- Structure Review: Conduct a thorough review of the current organizational structure to identify areas for improvement and optimize collaboration, innovation, and decision-making. Consider implementing a more decentralized structure that empowers regional teams while maintaining a strong central leadership.
- Technology Integration: Invest in technology solutions that streamline communication, collaboration, and knowledge sharing across the organization.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Buro Happold's core competencies in engineering and design, while also supporting its mission of creating a positive impact on the world.
- External Customers and Internal Clients: The recommendations aim to improve communication and collaboration, leading to enhanced client satisfaction and improved employee engagement.
- Competitors: By fostering a strong culture of innovation and talent development, Buro Happold can remain competitive in the global engineering consultancy market.
- Attractiveness: The proposed initiatives are expected to lead to increased employee engagement, improved productivity, and enhanced brand reputation, ultimately contributing to the company's long-term success.
6. Conclusion
By embracing a culture of collaboration, innovation, and inclusivity, Buro Happold can successfully navigate its growth trajectory and maintain its position as a leading global engineering consultancy. Implementing the recommended initiatives will empower employees, attract and retain top talent, and ensure the company's continued success in the years to come.
7. Discussion
Other alternatives not selected include:
- Status Quo: Maintaining the current approach, which could lead to further cultural fragmentation and loss of talented employees.
- Mergers and Acquisitions: Acquiring other firms to expand its reach, which could present integration challenges and cultural clashes.
The key risks associated with our recommendations include:
- Resistance to Change: Employees may resist changes to the organizational culture and leadership style.
- Implementation Challenges: Successfully implementing the proposed initiatives requires strong leadership commitment and effective communication.
- Financial Costs: Investing in leadership development, talent acquisition, and technology solutions requires significant financial resources.
Our recommendations are based on the assumption that Buro Happold's leadership is committed to fostering a positive and inclusive work environment, and employees are willing to embrace the necessary changes.
8. Next Steps
To implement these recommendations, Buro Happold should:
- Establish a Task Force: Form a cross-functional task force to oversee the implementation of the culture transformation initiative.
- Develop a Timeline: Create a detailed timeline with key milestones for each initiative, including budget allocations and resource requirements.
- Communicate Regularly: Maintain open communication with employees throughout the implementation process, addressing concerns and celebrating successes.
- Monitor and Evaluate: Regularly monitor the progress of the initiatives and make adjustments as needed to ensure their effectiveness.
By taking these steps, Buro Happold can successfully navigate its growth trajectory, foster a thriving organizational culture, and achieve its ambitious goals.
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Case Description
Padraic Kelly became Managing Director (MD) of the engineering services firm Buro Happold in 1996. One of his first initiatives was "Aim for Growth," which was intended to help the firm grow beyond its current size where it was constrained by a structure of having each of the firm's founding partners responsible for a group of 25-30 engineers. This initiative was very successful, but the firm then found itself with a lack of leadership skills at all levels of the organization to manage a company of a much larger size, growing by a factor of 10 over 10 years. In response, Buro Happold developed its first formal internal training programs under the name of "Archimedes Academy." The first two programs were (1) the Job Leader Program, targeted for senior engineers and designed to help them be more effective in working with clients, and (2) the Project Leader Program, targeted for project leaders and designed to help them develop the "softer" management skills to complement their technical ones. A distinctive aspect of Archimedes Academy is that these first programs were developed and delivered by the cohors who first attended them. Rather than partner with a university to develop an accredited program, the firm decided it would be better off developing the program itself, with the help of an outside consultant who had done something similar at his previous employer, in order to make sure the programs were specific enough to Buro Happold's needs and relevant to the firm's culture. The first two programs were a big success and the firm expanded the training offerings under the Archimedes Banner. The case ends with a client, a Middle Eastern city authority, asking Buro Happold Consulting, a new unit created by Padraic Kelly after stepping down as MD in 2006, to develop a training program for them. This request raises the question of whether this internal training capability should become the basis of an external service offering.
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