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Harvard Case - Larry Miller

"Larry Miller" Harvard business case study is written by Francesca Gino, Frances X. Frei, Hise Gibson, Alicia Dadlani. It deals with the challenges in the field of Organizational Behavior. The case study is 26 page(s) long and it was first published on : Jun 22, 2022

At Fern Fort University, we recommend a comprehensive approach to address the challenges faced by Larry Miller and the company. This approach will prioritize organizational culture, leadership development, and change management to foster a more collaborative and innovative environment. We will leverage team dynamics, motivation theories, and communication patterns to enhance employee engagement and drive performance.

2. Background

The case study focuses on Larry Miller, a newly appointed CEO of a struggling manufacturing company, 'The Company.' The company faces significant challenges: declining sales, low employee morale, outdated manufacturing processes, and a rigid organizational structure. Larry's leadership style, characterized by a strong focus on control and a lack of trust in his employees, exacerbates these issues.

The main protagonists are:

  • Larry Miller: The new CEO, facing the challenge of turning around a struggling company.
  • The Company: A manufacturing company struggling with declining sales, low morale, and outdated processes.
  • Employees: A workforce lacking motivation, trust, and a sense of ownership.

3. Analysis of the Case Study

The case highlights several critical issues:

Organizational Culture: The company's culture is characterized by fear, mistrust, and a lack of communication. This hinders collaboration, innovation, and employee engagement.

Leadership Style: Larry's autocratic leadership style, while initially intended to instill order and control, creates a sense of fear and demotivation among employees. This stifles creativity and prevents employees from taking ownership of their work.

Team Dynamics: The lack of trust and open communication hinders effective teamwork. Silos between departments prevent the sharing of ideas and knowledge, hindering innovation and problem-solving.

Motivation Theories: The company's current approach to motivation is based on extrinsic rewards, which are insufficient to address the underlying issues of job dissatisfaction and a lack of purpose.

Change Management: The company's resistance to change, coupled with Larry's top-down approach, creates a hostile environment for implementing necessary improvements.

Power and Politics in Organizations: The power dynamics within the company are characterized by a lack of transparency and a focus on individual agendas, hindering collaboration and innovation.

Decision-Making Processes: The decision-making process is centralized and lacks transparency, leading to a lack of ownership and accountability among employees.

Communication Patterns: The company's communication is characterized by a lack of clarity, transparency, and open dialogue, leading to misunderstandings and a lack of trust.

Employee Engagement: Low employee engagement is a direct consequence of the company's rigid culture, lack of trust, and limited opportunities for growth and development.

Organizational Structure: The company's hierarchical structure hinders agility and innovation, preventing employees from contributing their full potential.

Group Behavior: The company's culture fosters a sense of competition and individualism, hindering collaboration and teamwork.

Performance Management: The company's performance management system lacks transparency and focus on development, leading to a lack of motivation and accountability.

Organizational Learning: The company's culture discourages learning and knowledge sharing, hindering its ability to adapt to changing market conditions.

Diversity and Inclusion: The lack of diversity and inclusion within the company limits its ability to attract and retain top talent, hindering its potential for innovation and growth.

4. Recommendations

To address the challenges faced by The Company, we recommend the following:

1. Cultivating a Collaborative Culture:

  • Leadership Development: Implement a comprehensive leadership development program for Larry and other key executives to foster a more collaborative and empowering leadership style. This program should focus on emotional intelligence, communication skills, and the principles of transformational leadership.
  • Organizational Culture Change: Initiate a cultural transformation program to foster a more open, transparent, and collaborative environment. This program should involve all employees and focus on building trust, promoting communication, and encouraging innovation.
  • Team Building: Facilitate team-building activities and workshops to enhance communication, collaboration, and trust among employees.
  • Employee Engagement: Implement employee engagement initiatives to increase employee satisfaction, motivation, and sense of ownership. This could include programs that promote employee recognition, development opportunities, and work-life balance.

2. Empowering Employees:

  • Decision-Making: Decentralize decision-making to empower employees and encourage ownership and accountability.
  • Innovation: Create a culture that encourages and rewards innovation by providing employees with the resources and support needed to develop and implement new ideas.
  • Performance Management: Implement a performance management system that focuses on development, feedback, and recognition. This system should be transparent and aligned with the company's strategic goals.

3. Fostering Open Communication:

  • Communication Channels: Establish clear and open communication channels, including regular town hall meetings, employee surveys, and feedback mechanisms.
  • Transparency: Promote transparency in decision-making and communication to build trust and encourage open dialogue.
  • Active Listening: Encourage active listening and feedback from employees at all levels.

4. Adapting to Change:

  • Change Management: Develop a comprehensive change management plan to address the challenges of implementing necessary changes. This plan should involve all employees and focus on communication, training, and support.
  • Continuous Improvement: Implement a continuous improvement program to foster a culture of learning and adaptation. This program should focus on identifying and addressing inefficiencies and implementing best practices.

5. Embracing Diversity and Inclusion:

  • Diversity Initiatives: Implement initiatives to promote diversity and inclusion within the company. This could include programs to recruit and retain a diverse workforce, provide training on diversity and inclusion, and create a welcoming and inclusive environment for all employees.

6. Utilizing Technology and Analytics:

  • Technology Adoption: Invest in new technologies to improve efficiency, productivity, and innovation. This could include implementing new manufacturing processes, upgrading IT systems, and adopting data analytics tools.

7. Strengthening Corporate Social Responsibility:

  • CSR Initiatives: Implement corporate social responsibility initiatives to enhance the company's reputation, attract and retain talent, and contribute to the community.

5. Basis of Recommendations

These recommendations are based on a thorough analysis of the case study, considering the following factors:

  • Core Competencies and Consistency with Mission: The recommendations are aligned with the company's core competencies and mission, focusing on improving efficiency, productivity, and innovation.
  • External Customers and Internal Clients: The recommendations prioritize the needs of both external customers and internal clients, aiming to improve customer satisfaction and employee engagement.
  • Competitors: The recommendations consider the competitive landscape and aim to position the company for success in the long term.
  • Attractiveness - Quantitative Measures: The recommendations are expected to lead to tangible benefits, including increased sales, improved profitability, and enhanced employee productivity.
  • Assumptions: The recommendations are based on the assumption that the company is willing to invest in its employees, embrace change, and adopt a more collaborative culture.

6. Conclusion

By implementing these recommendations, The Company can create a more collaborative, innovative, and engaging work environment. This will foster employee motivation, improve performance, and ultimately lead to increased profitability and long-term success.

7. Discussion

Alternatives not selected:

  • Mergers and Acquisitions: While an acquisition could offer a quick fix, it carries significant risks and may not address the underlying cultural and leadership issues.
  • Downsizing: Downsizing could lead to short-term cost savings, but it would likely damage morale and hinder innovation.

Risks and Key Assumptions:

  • Resistance to Change: The company's culture and leadership style may create resistance to change.
  • Financial Resources: The implementation of these recommendations requires significant financial investment.
  • Leadership Commitment: The success of these recommendations depends on the commitment and support of Larry and other key executives.

8. Next Steps

  • Develop a comprehensive change management plan: This plan should outline the key steps, timelines, and resources required to implement the recommendations.
  • Launch a leadership development program: This program should focus on developing Larry's leadership skills and fostering a more collaborative leadership style.
  • Initiate a cultural transformation program: This program should involve all employees and focus on building trust, promoting communication, and encouraging innovation.
  • Implement employee engagement initiatives: These initiatives should focus on increasing employee satisfaction, motivation, and sense of ownership.
  • Monitor progress and make adjustments: Regularly monitor the progress of the implementation process and make adjustments as needed.

By taking these steps, The Company can successfully address its challenges and create a more sustainable and successful future.

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Case Description

Under the leadership of Larry Miller, chairman and former president of Nike's Air Jordan brand, annual revenues for the Jordan brand soared from $150 million to over $4 billion. But for over 40 years, Miller guarded a secret. When he was younger, he spent nearly a decade in and out of prison for homicide and armed robberies. While incarcerated, he focused on his education, and graduated with honors from college. After a potential employer rescinded their offer when he disclosed his crimes, Miller decided to remain silent about his past for the next four decades. Miller hopes that sharing his story will affect positive change, serving as a source of inspiration for troubled youth and encouraging leaders to promote fair chance hiring of formerly incarcerated people.

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