Harvard Case - Chorus and Telecom: Building the Boards
"Chorus and Telecom: Building the Boards" Harvard business case study is written by Boris Groysberg, Sarah L. Abbott. It deals with the challenges in the field of Organizational Behavior. The case study is 34 page(s) long and it was first published on : Jan 31, 2013
At Fern Fort University, we recommend a strategic approach to building the boards of Chorus and Telecom, focusing on diversity, expertise, and alignment with the evolving telecommunications landscape. This approach involves a comprehensive recruitment process, a robust onboarding program, and a clear framework for board engagement.
2. Background
This case study focuses on the merger of Chorus and Telecom, two major New Zealand telecommunications companies. The merger created a new entity with a complex organizational structure and the need to establish a unified board of directors. The case highlights the challenges of integrating two distinct corporate cultures, managing power dynamics, and ensuring effective leadership in the post-merger environment.
The main protagonists are:
- Mark Ratcliffe: CEO of the merged entity, tasked with leading the integration process and building a cohesive board.
- The Board of Directors: Composed of individuals from both Chorus and Telecom, each with their own perspectives and priorities.
- The Shareholders: Concerned about the success of the merger and the long-term value of their investment.
3. Analysis of the Case Study
This case study can be analyzed through the lens of organizational behavior, focusing on the following key areas:
- Leadership Styles: The case highlights the importance of transformational leadership in driving the merger process. Mark Ratcliffe needs to inspire and motivate the board and employees, fostering a shared vision for the future.
- Organizational Culture: The merger necessitates a change management approach to integrate the distinct cultures of Chorus and Telecom. This requires effective communication, conflict resolution, and building a sense of shared identity.
- Team Dynamics: The board needs to function as a cohesive unit, overcoming potential groupthink and promoting open dialogue.
- Power and Politics: The case highlights the potential for power struggles between individuals from the two merged companies. Mark Ratcliffe needs to navigate these dynamics effectively to ensure board unity and focus.
- Decision-Making Processes: The board needs to establish clear and transparent decision-making processes, balancing the perspectives of different stakeholders.
4. Recommendations
To effectively build the boards of Chorus and Telecom, we recommend the following:
- Diversity and Expertise: Recruit board members with a diverse range of expertise, including telecommunications, finance, technology, and legal. Prioritize individuals with experience in mergers and acquisitions, change management, and international business.
- Robust Onboarding: Implement a structured onboarding program for new board members, focusing on:
- Organizational Culture: Introduce the company's values, mission, and vision.
- Strategic Direction: Communicate the merger's objectives and the company's long-term strategy.
- Governance Structure: Explain the board's roles, responsibilities, and decision-making processes.
- Board Engagement: Foster active engagement and collaboration among board members through:
- Regular Meetings: Schedule frequent board meetings to discuss key issues and monitor progress.
- Committee Structure: Establish specialized committees to focus on specific areas, such as finance, strategy, and technology.
- Open Communication: Encourage open dialogue and feedback among board members.
- Leadership Development: Invest in leadership development programs for both board members and senior executives, focusing on:
- Emotional Intelligence: Develop self-awareness, empathy, and communication skills.
- Strategic Thinking: Enhance problem-solving and decision-making abilities.
- Change Management: Build skills to navigate organizational change effectively.
5. Basis of Recommendations
These recommendations are based on the following key considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the company's need to build a strong board with the expertise and experience to navigate the complex telecommunications landscape.
- External Customers and Internal Clients: The recommendations aim to ensure that the board is focused on meeting the needs of both external customers and internal stakeholders.
- Competitors: The recommendations consider the competitive landscape and the need for the company to stay ahead of the curve in innovation and technology.
- Attractiveness: The recommendations are designed to enhance the company's attractiveness to investors and potential talent.
6. Conclusion
Building the boards of Chorus and Telecom requires a strategic approach that prioritizes diversity, expertise, and alignment with the company's evolving needs. By implementing a comprehensive recruitment process, a robust onboarding program, and a framework for board engagement, the company can create a strong and effective board that drives long-term success.
7. Discussion
Alternative approaches to building the boards could include:
- Focusing solely on internal candidates: This approach could lead to a lack of diversity and potentially limit the board's ability to adapt to change.
- Relying on informal communication: This approach could lead to misunderstandings, conflicts, and a lack of transparency.
The key risks associated with our recommendations include:
- Resistance to change: Some board members may resist the proposed changes, leading to conflict and delays.
- Lack of buy-in: The board may not fully embrace the new structure and processes, leading to inefficiencies.
The key assumptions underlying our recommendations include:
- Commitment from leadership: The CEO and other senior executives must be fully committed to the proposed changes.
- Open communication: The board must be willing to engage in open and honest dialogue.
- Flexibility and adaptability: The company must be willing to adapt its approach as needed.
8. Next Steps
The following steps should be taken to implement the recommendations:
- Develop a detailed recruitment plan: Define the skills and experience needed for each board position and establish a clear recruitment timeline.
- Design an onboarding program: Create a comprehensive onboarding program that includes training, mentorship, and networking opportunities.
- Establish a board engagement framework: Develop clear guidelines for board meetings, committee structures, and communication protocols.
- Implement leadership development programs: Provide board members and senior executives with opportunities to enhance their leadership skills.
By taking these steps, Chorus and Telecom can effectively build the boards necessary to navigate the challenges and opportunities of the evolving telecommunications landscape.
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Case Description
In 2011, Sarah Naudé and Matt Stanley sat down with the chairman of Telecom New Zealand, Wayne Boyd. Telecom, a publicly listed company and the largest telecom provider in New Zealand, was being divided into two publicly traded companies, Chorus, a telecom infrastructure company, and new Telecom, a telecom retail services provider. In connection with this split, Naudé and Stanley were charged with overseeing the process of creating two new boards of directors for these companies. As part of this process, the team reviews the roles and responsibilities of a board, defines what capabilities the new boards need, and reduces a preliminary list of candidates to a short list. They must now use this short list to create two strong boards.
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