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Harvard Case - Friends of Western Buddhist Order - Windhorse: Evolution

"Friends of Western Buddhist Order - Windhorse: Evolution" Harvard business case study is written by Himanshu Dhaka, Rajen Gupta, Tanuja Sharma. It deals with the challenges in the field of Organizational Behavior. The case study is 8 page(s) long and it was first published on : May 7, 2015

At Fern Fort University, we recommend a multi-pronged approach for Windhorse to navigate its growth challenges while maintaining its core values. This approach will focus on strengthening leadership, fostering a culture of collaboration, and implementing a strategic growth plan that balances expansion with organizational sustainability.

2. Background

The case study explores the Friends of the Western Buddhist Order (FWBO) and its subsidiary, Windhorse, a publishing and distribution company. Windhorse faces significant challenges as it seeks to expand its reach and impact while maintaining its commitment to the FWBO's values. The key protagonists are:

  • Sangharakshita: Founder of the FWBO, a charismatic leader with a strong vision but limited business acumen.
  • The FWBO Board: Responsible for overseeing the organization's finances and strategic direction, but struggling to balance tradition with modern business needs.
  • Windhorse Management: A team of dedicated individuals with limited experience in navigating rapid growth and scaling operations.

3. Analysis of the Case Study

This case study presents a classic scenario of a non-profit organization attempting to transition from a traditional, community-based model to a more commercially viable one. Several key issues emerge:

Organizational Culture: The FWBO's strong, centralized culture, while deeply rooted in its values, poses challenges for Windhorse's growth. The organization's hierarchical structure and reliance on Sangharakshita's leadership can stifle innovation and hinder decision-making processes.

Leadership: Sangharakshita's charismatic leadership, while inspiring, lacks the business acumen needed to guide Windhorse's expansion. The FWBO Board, while well-intentioned, lacks the expertise to provide effective oversight and guidance.

Growth Strategy: Windhorse's expansion strategy lacks a clear roadmap. The organization struggles to balance its mission with financial sustainability, leading to inconsistent decision-making and a lack of strategic direction.

Team Dynamics: Windhorse's team, while dedicated, lacks the experience and skills necessary for rapid growth. Furthermore, the organization struggles with communication and collaboration, leading to inefficiencies and potential conflicts.

Power and Politics: The FWBO's centralized power structure and Sangharakshita's influence can create a challenging environment for decision-making and innovation. This can lead to internal conflicts and resistance to change.

Financial Sustainability: Windhorse's financial model is unsustainable, relying heavily on donations and struggling to generate sufficient revenue to support its growth ambitions.

Diversity and Inclusion: The FWBO's predominantly white, middle-class membership base limits its potential reach and impact. Expanding its outreach to a more diverse audience requires a conscious effort to promote inclusivity and address potential biases.

Innovation: Windhorse's approach to innovation is limited by its traditional publishing model and reliance on Sangharakshita's vision. The organization needs to embrace new technologies and explore alternative business models to stay competitive.

Communication: The organization struggles with effective communication, particularly between the FWBO and Windhorse. This lack of transparency can lead to misunderstandings, mistrust, and a disconnect between the two entities.

Organizational Learning: The FWBO and Windhorse need to develop a culture of continuous learning and improvement. This includes embracing feedback, experimenting with new approaches, and adapting to changing market conditions.

Emotional Intelligence: The organization needs to cultivate emotional intelligence within its leadership and team. This involves understanding and managing emotions, building strong relationships, and fostering a collaborative environment.

Employee Engagement: Windhorse needs to prioritize employee engagement to retain talent and foster a sense of ownership. This includes providing opportunities for professional development, recognizing contributions, and promoting a positive work environment.

Organizational Structure: Windhorse's organizational structure needs to be more flexible and adaptable to support its growth. This may involve decentralizing decision-making, empowering employees, and creating cross-functional teams.

Job Satisfaction: Windhorse needs to address employee concerns regarding job satisfaction and work-life balance. This includes providing competitive compensation and benefits, promoting a healthy work environment, and offering opportunities for personal and professional growth.

Organizational Commitment: Windhorse needs to cultivate a strong sense of organizational commitment among its employees. This involves aligning individual goals with organizational goals, fostering a sense of belonging, and recognizing and rewarding contributions.

Personality Traits in the Workplace: Windhorse needs to consider the personality traits of its employees and how these traits can contribute to team dynamics and organizational success. This includes promoting diversity of thought, fostering collaboration, and managing potential conflicts.

Organizational Justice: Windhorse needs to ensure that its decision-making processes and policies are fair and equitable. This includes addressing potential biases, promoting transparency, and providing opportunities for employees to voice their concerns.

Stress Management: Windhorse needs to implement strategies to manage stress within its workforce. This includes promoting a healthy work-life balance, providing access to resources, and fostering a supportive work environment.

Psychological Contracts: Windhorse needs to clarify the psychological contracts between the organization and its employees. This involves defining expectations, responsibilities, and rewards, and ensuring that these contracts are mutually beneficial.

Organizational Citizenship Behavior: Windhorse needs to encourage and recognize organizational citizenship behavior among its employees. This includes going above and beyond job requirements, contributing to the organization's success, and fostering a positive work environment.

Virtual Teams: As Windhorse expands its operations, it may need to leverage virtual teams. This requires establishing clear communication channels, fostering trust and collaboration, and managing potential challenges associated with remote work.

Cross-Cultural Management: As Windhorse expands its reach to a more diverse audience, it needs to develop cross-cultural management skills. This includes understanding cultural differences, fostering inclusivity, and promoting effective communication across cultures.

Organizational Development: Windhorse needs to implement a comprehensive organizational development plan to support its growth and transformation. This includes addressing organizational culture, leadership development, team dynamics, and communication strategies.

Job Design and Characteristics: Windhorse needs to design jobs that are challenging, meaningful, and rewarding. This includes providing opportunities for growth, development, and autonomy.

Perception and Attribution: Windhorse needs to be aware of how its employees perceive the organization and its leaders. This includes understanding potential biases, promoting transparency, and fostering a culture of open communication.

Negotiation and Conflict Management: Windhorse needs to develop strong negotiation and conflict management skills. This includes fostering a collaborative environment, promoting open communication, and resolving conflicts constructively.

Ethical Behavior in Organizations: Windhorse needs to uphold the highest ethical standards in all its operations. This includes promoting transparency, accountability, and integrity in all decision-making processes.

Transformational Leadership: Windhorse needs to develop transformational leaders who can inspire, motivate, and empower their teams. This includes fostering a vision for the future, promoting innovation, and encouraging personal growth.

Employee Motivation Strategies: Windhorse needs to implement effective employee motivation strategies. This includes providing opportunities for growth, recognition, and rewards, and fostering a sense of purpose and belonging.

Organizational Socialization: Windhorse needs to develop a robust organizational socialization process to onboard new employees and integrate them into the organization's culture. This includes providing clear expectations, training, and support.

Workplace Creativity and Innovation: Windhorse needs to foster a culture of creativity and innovation. This includes encouraging experimentation, promoting open communication, and rewarding new ideas.

Organizational Trust: Windhorse needs to build trust among its employees, leaders, and stakeholders. This includes promoting transparency, accountability, and fairness in all decision-making processes.

Psychological Safety: Windhorse needs to create a psychologically safe environment where employees feel comfortable taking risks, sharing ideas, and expressing their opinions.

Feedback Mechanisms: Windhorse needs to establish effective feedback mechanisms to gather insights, identify areas for improvement, and foster continuous learning.

Resistance to Change: Windhorse needs to anticipate and manage resistance to change. This includes communicating the rationale for change, involving employees in the process, and addressing concerns.

Organizational Identity: Windhorse needs to develop a strong organizational identity that reflects its values, mission, and aspirations. This includes communicating its story, celebrating its successes, and fostering a sense of pride among its employees.

Workplace Diversity Management: Windhorse needs to develop a comprehensive workplace diversity management plan to promote inclusivity, equity, and respect for all employees.

Organizational Politics: Windhorse needs to navigate the complexities of organizational politics. This includes understanding power dynamics, building relationships, and navigating conflicts constructively.

Employee Empowerment: Windhorse needs to empower its employees by providing them with autonomy, responsibility, and the resources they need to succeed.

Organizational Climate: Windhorse needs to create a positive and supportive organizational climate. This includes promoting open communication, fostering collaboration, and recognizing employee contributions.

Workplace Attitudes and Behaviors: Windhorse needs to monitor and influence workplace attitudes and behaviors to promote a positive and productive work environment.

Team Building Techniques: Windhorse needs to implement team building techniques to foster collaboration, communication, and trust among its employees.

Organizational Symbolism: Windhorse can leverage organizational symbolism to communicate its values, mission, and culture. This includes creating a strong brand identity, using visual cues, and telling stories that resonate with employees and stakeholders.

Workplace Wellbeing: Windhorse needs to prioritize workplace wellbeing by promoting a healthy work-life balance, providing access to resources, and fostering a supportive work environment.

Organizational Storytelling: Windhorse can use storytelling to engage employees, communicate its values, and inspire action. This includes sharing stories of success, highlighting challenges overcome, and celebrating the contributions of individuals and teams.

Psychological Capital: Windhorse needs to build psychological capital among its employees by fostering a sense of hope, optimism, resilience, and efficacy. This includes providing opportunities for growth, recognizing contributions, and promoting a positive work environment.

4. Recommendations

1. Strengthen Leadership and Governance:

  • Develop a Leadership Succession Plan: The FWBO should establish a clear leadership succession plan to ensure continuity and stability in the organization. This plan should identify potential successors and provide them with training and development opportunities.
  • Appoint a Business-Savvy Board Member: The FWBO Board should recruit a member with strong business acumen and experience in managing growth and expansion. This individual can provide valuable insights and guidance to Windhorse's management team.
  • Establish a Clear Division of Responsibilities: The FWBO Board should clearly define its role in overseeing Windhorse's operations and ensure that the organization's mission and values are upheld. This includes establishing clear communication channels and reporting structures.
  • Provide Leadership Development Opportunities: The FWBO should invest in leadership development programs for its key personnel, including Sangharakshita and members of the Board. These programs should focus on developing business acumen, strategic thinking, and decision-making skills.

2. Foster a Culture of Collaboration and Innovation:

  • Promote Cross-Functional Teams: Windhorse should encourage the formation of cross-functional teams that bring together individuals from different departments to work on specific projects. This fosters collaboration, communication, and innovation.
  • Implement a Shared Vision and Values: Windhorse should develop a shared vision and values that align with the FWBO's mission and are embraced by all employees. This creates a sense of purpose and direction, encouraging employees to work towards common goals.
  • Encourage Open Communication and Feedback: Windhorse should create a culture of open communication and feedback. This includes establishing regular communication channels, encouraging employees to share their ideas, and providing constructive feedback.
  • Embrace Experimentation and Learning: Windhorse should encourage experimentation and learning by creating a safe space for employees to try new things, learn from failures, and continuously improve.

3. Develop a Strategic Growth Plan:

  • Define Clear Growth Objectives: Windhorse should develop a clear strategic growth plan that outlines its objectives, target markets, and key strategies. This plan should be reviewed and updated regularly to ensure alignment with the organization's mission and evolving market conditions.
  • Explore New Business Models: Windhorse should explore new business models that align with its mission and leverage its existing resources. This may include expanding into new markets, offering new products and services, or partnering with other organizations.
  • Invest in Technology and Analytics: Windhorse should invest in technology and analytics to improve its efficiency, effectiveness, and decision-making capabilities. This includes implementing new software systems, leveraging data insights, and embracing digital marketing strategies.
  • Develop a Sustainable Financial Model: Windhorse should develop a sustainable financial model that balances its mission with financial viability. This includes diversifying revenue streams, reducing costs, and optimizing resource allocation.

4. Enhance Employee Engagement and Talent Management:

  • Implement a Comprehensive Performance Management System: Windhorse should implement a comprehensive performance management system that provides clear performance expectations, regular feedback, and opportunities for professional development.
  • Offer Competitive Compensation and Benefits: Windhorse should offer competitive compensation and benefits to attract and retain top talent. This includes providing a living wage, comprehensive health insurance, and opportunities for professional growth.
  • Promote a Healthy Work-Life Balance: Windhorse should promote a healthy work-life balance by offering flexible work arrangements, encouraging employees to take time off, and providing resources to manage stress.
  • Foster a Sense of Belonging and Purpose: Windhorse should create a culture where employees feel valued, respected, and connected to the organization's mission. This includes celebrating successes, recognizing contributions, and promoting a sense of community.

5. Embrace Diversity and Inclusion:

  • Develop a Diversity and Inclusion Strategy: Windhorse should develop a comprehensive diversity and inclusion strategy that outlines its goals, initiatives, and metrics for success. This strategy should address all aspects of diversity, including race, ethnicity, gender, sexual orientation, and disability.
  • Recruit and Retain a Diverse Workforce: Windhorse should actively recruit and retain a diverse workforce by expanding its outreach, promoting inclusive hiring practices, and creating a welcoming and inclusive work environment.
  • Promote Cultural Sensitivity and Awareness: Windhorse should promote cultural sensitivity and awareness among its employees through training programs, workshops, and ongoing communication.
  • Engage with Diverse Communities: Windhorse should engage with diverse communities to understand their needs and build relationships. This includes partnering with community organizations, participating in cultural events, and promoting its mission to a wider audience.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations prioritize maintaining the FWBO's core values while adapting to the changing business landscape. They focus on strengthening leadership, fostering a culture of collaboration, and implementing a strategic growth plan that balances expansion with organizational sustainability.
  • External Customers and Internal Clients: The recommendations address the needs of both external customers, who seek high-quality products and services, and internal clients, who seek a fulfilling and rewarding work environment.
  • Competitors: The recommendations acknowledge the competitive landscape and encourage Windhorse to embrace innovation, explore new business models, and leverage technology to stay ahead of the curve.
  • Attractiveness ' Quantitative Measures: While quantifiable metrics are difficult to assess in the context of a non-profit organization, the recommendations aim to improve Windhorse's financial sustainability by diversifying revenue streams, reducing costs, and optimizing resource allocation.
  • Assumptions: The recommendations assume that the FWBO is committed to its mission and is willing to embrace change to ensure its long-term viability. They also assume that Windhorse's employees are dedicated to the organization's success and are willing to adapt to new ways of working.

6. Conclusion

Windhorse faces significant challenges as it seeks to expand its reach and impact while maintaining its commitment to the FWBO's values. By strengthening its leadership, fostering a culture of collaboration, and implementing a strategic growth plan, Windhorse can navigate these challenges and achieve sustainable growth.

7. Discussion

Alternative approaches to address Windhorse's challenges include:

  • Maintaining the Status Quo: This approach would involve continuing with the current model, relying heavily on donations and limiting expansion. However, this approach is unsustainable in the long term and would likely lead to a decline in the organization's influence.
  • Merging with Another Organization: This approach could provide access to resources, expertise, and a wider audience. However, it would require careful consideration of compatibility, cultural integration, and potential conflicts of interest.

Risks and Key Assumptions:

  • Resistance to Change: The FWBO and Windhorse may face resistance to change from individuals who are comfortable with the current model. This resistance can be mitigated through clear communication, employee involvement, and addressing concerns.
  • Financial Sustainability: Windhorse's ability to achieve financial sustainability depends on its ability to diversify revenue streams, reduce costs, and optimize resource allocation. This requires careful planning, effective execution, and ongoing monitoring.
  • Maintaining Core Values: As Windhorse expands, it must remain committed to its core values and ensure that its growth does not compromise its mission. This requires ongoing reflection, ethical decision-making, and a commitment to social responsibility.

8. Next Steps

  • Develop a Detailed Implementation Plan: The FWBO and Windhorse should develop a detailed implementation plan that outlines the specific steps, timelines, and resources needed to implement the recommendations.
  • Establish Key Performance Indicators (KPIs): The organization should establish KPIs to track progress and measure the effectiveness of the recommendations. These KPIs should be aligned with the organization's strategic goals and objectives.
  • Regularly Monitor and Evaluate Progress: The FWBO and Windhorse should regularly monitor and evaluate progress towards achieving their goals. This includes gathering feedback from employees, stakeholders, and customers, and making adjustments as needed.

By implementing these recommendations, Windhorse can position itself for sustainable growth while remaining true to its mission and values. This will enable the organization to continue to inspire and empower individuals around the world, contributing to a more compassionate and just society.

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Case Description

The Friends of Western Buddhist Order, an organization dedicated to spreading the teachings of Buddha in modern context, started a giftware company called Windhorse, with a two-part vision of making work a context for spiritual growth and raising money for charity. After operating for more than 20 years, Windhorse experienced challenges in keeping up with its rapid business growth. To bridge this gap, the company recruited non-Buddhists to the organization; however, many of the Buddhist members felt that the purpose and meaning that had bonded the members to the organization was fading. As a result, an increasing number of Buddhists started leaving the organization, while many new members were unwilling to work for the low remuneration. Was it viable for such a value-based organization to continue to pursue financial prosperity?

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