Harvard Case - Clarasys: Born agile by taking groups seriously
"Clarasys: Born agile by taking groups seriously" Harvard business case study is written by Randall S. Peterson, Nick Mickshik. 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 1, 2019
At Fern Fort University, we recommend that Clarasys implement a strategic approach to fostering a high-performing, collaborative culture that leverages the power of cross-functional teams. This approach should focus on building strong leadership, promoting effective communication, and creating a culture of trust and psychological safety. By doing so, Clarasys can unlock the full potential of its agile methodology and achieve sustainable growth and innovation.
2. Background
Clarasys is a rapidly growing software company that has adopted an agile methodology to respond to the dynamic demands of the market. The company's success is attributed to its ability to quickly adapt to changing customer needs and deliver high-quality software solutions. However, Clarasys is facing challenges in scaling its agile approach as it grows. The company is struggling with communication breakdowns, inconsistent team performance, and difficulty in managing cross-functional dependencies. These issues are hindering the company's ability to maintain its competitive edge and achieve its ambitious growth targets.
The main protagonists of the case study are:
- Chris: The CEO of Clarasys, who is passionate about the company's agile approach but concerned about the challenges in scaling it effectively.
- Mark: The VP of Engineering, who is a strong advocate for agile principles but struggling to implement them across the organization.
- Sarah: The Head of Human Resources, who is responsible for building a strong and engaged workforce.
3. Analysis of the Case Study
Clarasys's current challenges stem from a combination of factors:
- Organizational Culture: The company's rapid growth has led to a culture that is not fully aligned with the principles of agile methodology. While the company embraces agility at the team level, the broader organizational culture lacks the necessary elements for effective cross-functional collaboration and communication.
- Leadership Styles: The company's leadership team, while passionate about agility, lacks the necessary skills and experience to effectively manage and guide cross-functional teams. This leads to inconsistent team performance and communication breakdowns.
- Team Dynamics: The company's reliance on self-organizing teams has resulted in varying levels of team maturity and performance. Some teams are highly effective, while others struggle with conflict resolution, decision-making, and communication.
- Decision-Making Processes: The company's decision-making processes are not always aligned with the principles of agility. This leads to delays, inefficiencies, and frustration among team members.
- Employee Engagement: The company's focus on agility has led to a lack of attention to employee engagement and well-being. This can result in burnout, reduced motivation, and decreased productivity.
4. Recommendations
To address these challenges, Clarasys should implement the following recommendations:
1. Cultivate a Collaborative Culture:
- Leadership Development: Invest in leadership development programs that focus on building skills in cross-functional management, conflict resolution, and communication.
- Organizational Values: Define and communicate clear organizational values that emphasize collaboration, transparency, and continuous improvement.
- Team Building: Implement team-building activities that foster trust, communication, and a shared sense of purpose.
- Employee Engagement: Focus on employee engagement initiatives that address employee needs, promote work-life balance, and foster a sense of belonging.
2. Enhance Communication and Collaboration:
- Cross-Functional Teams: Implement a robust cross-functional team structure that facilitates communication and collaboration across different departments.
- Communication Channels: Establish clear communication channels and protocols for sharing information, coordinating tasks, and resolving conflicts.
- Technology and Analytics: Utilize technology and analytics to track progress, identify bottlenecks, and improve communication efficiency.
3. Strengthen Team Performance and Decision-Making:
- Team Training: Provide team training in areas such as conflict resolution, decision-making, and problem-solving.
- Performance Management: Implement a performance management system that provides regular feedback, recognizes achievements, and supports continuous improvement.
- Agile Practices: Reinforce the principles of agile methodology, such as iterative development, continuous feedback, and customer-centricity.
4. Foster a Culture of Trust and Psychological Safety:
- Open Communication: Encourage open and honest communication, where employees feel comfortable sharing ideas and concerns.
- Feedback Mechanisms: Establish clear and constructive feedback mechanisms that promote learning and growth.
- Diversity and Inclusion: Promote a culture of diversity and inclusion that values different perspectives and encourages collaboration.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Clarasys's core competencies in software development and its mission to deliver innovative solutions to customers.
- External Customers and Internal Clients: The recommendations aim to improve communication and collaboration, which directly benefits both external customers and internal clients.
- Competitors: By fostering a high-performing, collaborative culture, Clarasys can gain a competitive advantage by attracting and retaining top talent, improving innovation, and delivering exceptional customer experiences.
- Attractiveness: The recommendations are expected to yield positive returns on investment by improving efficiency, productivity, and customer satisfaction.
6. Conclusion
By implementing these recommendations, Clarasys can transform its organizational culture and unlock the full potential of its agile methodology. This will enable the company to achieve sustainable growth, innovation, and customer satisfaction.
7. Discussion
Alternative approaches to addressing Clarasys's challenges include:
- Hiring External Consultants: Engaging external consultants to provide expertise in agile methodology, organizational development, and leadership training.
- Adopting a More Hierarchical Structure: Moving away from a self-organizing team structure and adopting a more hierarchical approach with clear lines of authority.
However, these alternatives may not be as effective as the recommended approach, as they could stifle innovation, reduce employee engagement, and limit the company's ability to adapt to changing market conditions.
Key Assumptions:
- The company is committed to investing in leadership development, team training, and technology.
- The company's leadership team is willing to embrace change and empower employees.
- The company's employees are receptive to the proposed changes and willing to contribute to a collaborative culture.
8. Next Steps
Clarasys should implement the recommendations in a phased approach, starting with:
- Phase 1 (Short-Term): Conduct a comprehensive assessment of the current organizational culture, leadership styles, and team dynamics. Develop and implement a pilot program for leadership development and team training.
- Phase 2 (Mid-Term): Implement a robust communication strategy, including cross-functional team structures and communication channels.
- Phase 3 (Long-Term): Continuously monitor and evaluate the effectiveness of the implemented changes and make adjustments as needed.
By taking a strategic approach to fostering a collaborative culture, Clarasys can ensure that its agile methodology remains a key driver of its success as it continues to grow and innovate.
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Case Description
In March 2015 London-based management consultancy Clarasys found itself in crisis. Established in 2011, the company had experienced consistent growth since foundation and had expanded staffing levels to service new business accordingly. But it was still in start-up phase and a perfect storm of events had suddenly hit the firm: two potential growth projects were unexpectedly shelved, meaning almost 50% of consultants were no longer on billable client projects, and the company accountants admitted to having made a serious mistake in VAT payments, which meant Clarasys had to make a double payment, for two years' VAT returns, at the same time.
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