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Harvard Case - CH2M HILL: Reinventing Organizational Careers

"CH2M HILL: Reinventing Organizational Careers" Harvard business case study is written by Karen Newman. It deals with the challenges in the field of Organizational Behavior. The case study is 23 page(s) long and it was first published on : Oct 1, 2013

At Fern Fort University, we recommend CH2M HILL implement a comprehensive organizational change initiative focused on fostering a culture of employee empowerment, innovation, and continuous learning to address the challenges of attracting and retaining top talent in a rapidly evolving global market. This initiative will involve a multi-pronged approach encompassing organizational structure, leadership development, talent management, and communication strategies, all underpinned by a commitment to diversity, inclusion, and ethical practices.

2. Background

CH2M HILL, a global engineering and construction firm, faced a critical juncture in its history. The company, known for its traditional hierarchical structure and rigid career paths, struggled to attract and retain top talent in a competitive market. The case study highlights the challenges posed by the changing demographics of the workforce, the rise of millennials with different expectations, and the need for agility and adaptability in a globalized business environment. The main protagonists are Craig Albert, the CEO, and Dan Roberts, the Chief Human Resources Officer, who are tasked with leading this organizational transformation.

3. Analysis of the Case Study

This case study can be analyzed through the lens of organizational behavior, specifically focusing on leadership styles, organizational culture, and change management.

Leadership Styles: CH2M HILL's traditional hierarchical structure fostered a command-and-control leadership style that stifled innovation and employee engagement. This style, while effective in a stable environment, proved inadequate in a dynamic and competitive marketplace.

Organizational Culture: The company's culture, characterized by rigid career paths, limited opportunities for cross-functional collaboration, and a lack of emphasis on continuous learning, contributed to the challenges of attracting and retaining talent.

Change Management: The case study highlights the need for a transformational change management approach to address the company's challenges. This requires a clear vision, effective communication, and a comprehensive plan to address employee concerns and build buy-in for the change.

Key Frameworks:

  • Lewin's Change Management Model: This model can be used to guide the implementation of change, focusing on unfreezing the existing culture, implementing the desired changes, and refreezing the new culture.
  • Kotter's 8-Step Change Model: This framework provides a roadmap for successful change management, emphasizing the importance of communication, leadership, and building momentum.
  • Herzberg's Two-Factor Theory: This theory can be applied to understand employee motivation and identify factors that contribute to job satisfaction and dissatisfaction.

4. Recommendations

A. Transforming Organizational Structure:

  • Move towards a more matrix structure: This will allow for greater cross-functional collaboration, enhance knowledge sharing, and provide employees with opportunities to work on diverse projects.
  • Implement a 'career lattice' model: This will replace rigid career paths with a more flexible system that allows employees to move laterally, vertically, and diagonally based on their skills and interests.
  • Empower teams: Delegate decision-making authority to teams, fostering a sense of ownership and responsibility.

B. Fostering a Culture of Innovation and Learning:

  • Promote a culture of continuous learning: Encourage employees to pursue professional development opportunities, participate in knowledge-sharing initiatives, and embrace new technologies.
  • Establish innovation labs: Create dedicated spaces where employees can experiment with new ideas, collaborate on projects, and develop innovative solutions.
  • Reward innovation: Recognize and reward employees who contribute to innovation, fostering a culture where creativity is valued.

C. Revamping Talent Management Practices:

  • Implement a competency-based talent management system: This will focus on identifying and developing the skills and knowledge required for success in the evolving market.
  • Invest in leadership development programs: Equip leaders with the skills and knowledge needed to effectively lead in a dynamic and globalized environment.
  • Develop a robust succession planning process: Identify and prepare high-potential employees for leadership roles.

D. Enhancing Communication and Engagement:

  • Improve internal communication: Establish clear and consistent communication channels to ensure employees are informed about organizational changes, company performance, and opportunities for growth.
  • Foster employee engagement: Create opportunities for employees to provide feedback, participate in decision-making processes, and contribute to the company's success.
  • Leverage technology: Utilize technology to enhance communication, collaboration, and knowledge sharing.

E. Embracing Diversity and Inclusion:

  • Promote diversity and inclusion at all levels: Create a workplace where employees from all backgrounds feel valued, respected, and empowered to contribute.
  • Implement diversity training programs: Educate employees about the importance of diversity and inclusion, and equip them with the skills to work effectively in diverse teams.
  • Establish a culture of ethical behavior: Promote a workplace where ethical conduct is valued and rewarded.

5. Basis of Recommendations

These recommendations are based on the following principles:

  • Core competencies and consistency with mission: The recommendations align with CH2M HILL's mission to deliver innovative solutions and enhance the quality of life for communities around the world.
  • External customers and internal clients: The recommendations aim to attract and retain top talent, which is essential for delivering exceptional service to external customers and meeting the needs of internal clients.
  • Competitors: The recommendations are informed by best practices in the industry and aim to position CH2M HILL as a leading employer in the global marketplace.
  • Attractiveness: The recommendations are expected to improve employee engagement, increase retention rates, and enhance the company's reputation as an employer of choice.

Assumptions:

  • The company is committed to investing in the necessary resources to implement these changes.
  • Employees are willing to embrace the new culture and adapt to the changing work environment.
  • The company's leadership team is committed to supporting the change process and demonstrating the desired behaviors.

6. Conclusion

By implementing these recommendations, CH2M HILL can transform its organizational culture, enhance its ability to attract and retain top talent, and position itself for continued success in the global marketplace. The company's commitment to employee empowerment, innovation, and continuous learning will create a more engaging and rewarding work environment, enabling employees to reach their full potential and contribute to the company's mission.

7. Discussion

Alternatives:

  • Maintaining the status quo: This would likely result in continued challenges in attracting and retaining talent, leading to a decline in the company's competitiveness.
  • Implementing a piecemeal approach: This would be less effective than a comprehensive change initiative, potentially leading to confusion and resistance.

Risks:

  • Resistance to change: Employees may resist the changes, particularly those who are comfortable with the existing culture.
  • Lack of leadership support: Without strong leadership support, the change initiative may falter.
  • Insufficient investment: The company may not invest the necessary resources to implement the changes successfully.

Key Assumptions:

  • The company is committed to investing in the necessary resources to implement these changes.
  • Employees are willing to embrace the new culture and adapt to the changing work environment.
  • The company's leadership team is committed to supporting the change process and demonstrating the desired behaviors.

8. Next Steps

Timeline:

  • Year 1: Develop a comprehensive change management plan, implement pilot programs to test new approaches, and begin communicating the vision for the future.
  • Year 2: Roll out the new organizational structure, implement talent management programs, and continue to foster a culture of innovation and learning.
  • Year 3: Evaluate the effectiveness of the changes, make adjustments as needed, and continue to build momentum for the transformation.

Key Milestones:

  • Develop a clear vision and communication strategy.
  • Secure leadership buy-in and support.
  • Implement pilot programs to test new approaches.
  • Develop training programs for employees and leaders.
  • Track progress and measure the impact of the changes.

By taking these steps, CH2M HILL can successfully reinvent its organizational careers, creating a more dynamic, innovative, and engaging workplace for its employees. This transformation will enable the company to attract and retain top talent, drive innovation, and achieve its strategic goals in the years to come.

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Case Description

This case addresses one over-arching problem - a broken career development system - and two concrete manifestations (symptoms) of the problem at CH2M HILL, an employee-owned engineering services firm. The first manifestation of the problem was unusually high voluntary turnover, at least by CH2M HILL's standards, among newer employees. The second was a lack of qualified internal candidates for top jobs. The voluntary turnover problem was the most immediate issue. Exit survey data and engagement survey data pointed to a lack of advancement opportunity as the main reason for high voluntary turnover among new employees. The second problem was less acute but still serious. Though CH2M HILL thought of itself as a career employer, fewer than 25 percent of top managers in early 2012 had been promoted from within. Internal candidates were not filling positions near the top and some top positions were vacant for months because the right person could not be found for the position, inside or outside the company. Both problems suggest the larger issue needs to be addressed -organizational careers need to be reinvented in the firm. Jan Walstrom, Chief Learning Officer, had been charged with rebuilding CH2M HILL's career development systems and processes. It fell to her to determine what steps she could take to solve the over-arching career development challenge while addressing the two concrete manifestations in the short run.

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