Harvard Case - Marlow Construction (A): Dan Marlow, Founder and President
"Marlow Construction (A): Dan Marlow, Founder and President" Harvard business case study is written by Sean Martin. It deals with the challenges in the field of Organizational Behavior. The case study is 1 page(s) long and it was first published on : Jun 6, 2019
At Fern Fort University, we recommend Dan Marlow implement a strategic plan to address the challenges facing Marlow Construction. This plan should focus on improving organizational culture, fostering leadership development, and enhancing communication and collaboration. By prioritizing these areas, Marlow Construction can achieve sustainable growth, attract and retain top talent, and solidify its position as a leading player in the construction industry.
2. Background
Marlow Construction is a successful family-owned business facing a pivotal moment in its history. Founder and President Dan Marlow, known for his entrepreneurial spirit and hands-on management style, is grappling with the challenges of transitioning the company to a more professional and sustainable operation. The company's rapid growth has led to a lack of formal processes, inconsistent communication, and a growing reliance on Dan's personal relationships to manage operations. This has created a culture of mistrust, limited career development opportunities, and a lack of clarity on future direction.
The case study highlights the key protagonists:
- Dan Marlow: A driven and successful entrepreneur, but lacking in formal management skills and struggling to delegate effectively.
- Marlow Family: Concerned about the company's future and the potential for family conflicts to arise.
- Employees: A mix of experienced and loyal workers, but with a growing sense of frustration due to a lack of clear direction and career progression.
3. Analysis of the Case Study
This case study presents a classic example of a growing company struggling to adapt to its changing needs. The analysis can be framed through the lens of Organizational Behavior and Leadership frameworks:
Organizational Behavior:
- Organizational Culture: Marlow Construction's culture is characterized by a strong emphasis on family ties and personal relationships. While this has been beneficial in the past, it has also created a lack of transparency, formal processes, and opportunities for professional development.
- Leadership Styles: Dan Marlow's hands-on, entrepreneurial leadership style has been successful in the past but is no longer sustainable as the company grows. His reluctance to delegate and rely on his personal network creates a dependence on him and limits the growth of other leaders within the organization.
- Team Dynamics: The lack of clear communication and defined roles leads to confusion and conflict within teams. This is further exacerbated by the lack of formal processes and a culture of secrecy.
- Motivation Theories: Employees are motivated by the company's success and Dan's personal charisma, but a lack of clear career paths and recognition for individual contributions leads to a decline in morale and job satisfaction.
Leadership:
- Leadership Development: The company lacks a formal leadership development program, limiting the growth of potential leaders within the organization.
- Change Management: Dan's resistance to change and his reliance on old methods hinder the company's ability to adapt to the changing needs of the industry.
- Communication: The lack of clear and consistent communication leads to misunderstandings, rumors, and a sense of uncertainty among employees.
- Power and Influence: Dan's centralized power structure creates a culture of dependence and limits the potential for innovation and creativity.
4. Recommendations
To address these challenges, Marlow Construction should implement the following recommendations:
1. Implement a Strategic Plan:
- Develop a clear vision and mission statement: This will provide a roadmap for the company's future and guide decision-making.
- Conduct a SWOT analysis: Identify the company's strengths, weaknesses, opportunities, and threats to inform strategic planning.
- Define key performance indicators (KPIs): Track progress towards achieving strategic goals and measure the effectiveness of implemented strategies.
- Develop a growth strategy: Identify new markets, services, and technologies to ensure long-term sustainability.
2. Foster Leadership Development:
- Establish a formal leadership development program: Provide training and mentorship opportunities to develop future leaders within the organization.
- Implement a succession plan: Identify and prepare potential successors for key leadership roles to ensure a smooth transition.
- Encourage delegation and empowerment: Empower employees to take on more responsibility and make decisions, fostering a culture of ownership and accountability.
3. Enhance Communication and Collaboration:
- Implement a clear and consistent communication strategy: Establish regular communication channels and ensure information is shared effectively across the organization.
- Promote open and transparent communication: Encourage employees to share ideas and feedback, creating a culture of trust and collaboration.
- Develop cross-functional teams: Bring together employees from different departments to work on projects, fostering collaboration and knowledge sharing.
- Utilize technology to improve communication: Implement tools like project management software and communication platforms to enhance collaboration and streamline processes.
4. Strengthen Organizational Culture:
- Define core values and principles: Articulate the company's values and ensure they are reflected in all aspects of the business.
- Promote a culture of trust and respect: Create an environment where employees feel valued, respected, and empowered to contribute.
- Encourage employee engagement: Provide opportunities for employees to participate in decision-making and contribute to the company's success.
- Recognize and reward employee contributions: Implement performance management systems and reward programs to acknowledge and celebrate employee achievements.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with the company's core competencies in construction and its mission to provide high-quality services to its clients.
- External customers and internal clients: The recommendations aim to improve customer satisfaction by enhancing communication and service delivery, while also increasing employee engagement and job satisfaction.
- Competitors: The recommendations will help Marlow Construction stay competitive by fostering innovation, attracting and retaining top talent, and implementing best practices in the industry.
- Attractiveness: The recommendations are expected to lead to increased profitability, improved employee retention, and a stronger brand reputation, ultimately contributing to the company's long-term success.
6. Conclusion
By implementing these recommendations, Marlow Construction can address the challenges it faces and position itself for sustainable growth. By fostering a culture of collaboration, transparency, and innovation, the company can attract and retain top talent, improve employee engagement, and solidify its reputation as a leading player in the construction industry.
7. Discussion
Alternatives:
- Outsourcing: Marlow Construction could consider outsourcing some functions to external companies, but this could lead to a loss of control and potentially compromise the company's core values.
- Mergers and Acquisitions: Acquiring or merging with another company could provide access to new markets and resources, but this could also lead to cultural clashes and integration challenges.
Risks and Key Assumptions:
- Resistance to change: Employees may resist change, particularly from Dan, who has been the driving force behind the company's success.
- Financial constraints: Implementing these recommendations may require significant financial investment, which could be a challenge for the company.
- Lack of expertise: The company may lack the internal expertise to implement some of these recommendations, requiring external support.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and resources required for each recommendation.
- Communicate the plan to all employees: Ensure transparency and buy-in from all stakeholders.
- Monitor progress and make adjustments as needed: Regularly evaluate the effectiveness of the implemented strategies and make adjustments as needed.
By taking these steps, Marlow Construction can transform itself into a more professional and sustainable organization, ensuring its success for generations to come.
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Case Description
This case represents an amalgam of commonly reported experiences people have when interacting with others from different social class backgrounds and positions of power. The A case takes the perspective of Dan Marlow, who grew up with access to financial and cultural resources and has built his own construction company. He has just fired Robby Gomez, an otherwise great worker, for chronic lateness, and he wonders why he is having trouble motivating and keeping employees. The B case takes the viewpoint of Gomez, who works hard but has trouble getting to work on time because of practical difficulties like car trouble and obligations to family and others in his community. By comparing the perspectives and experiences of these two protagonists, students learn to see how our own experiences and cultural knowledge can inform our decisions and the employee programs that we design. Because we are not aware of cultural norms that we have not personally experienced, we need to include a diversity of viewpoints in the decision-making and design process in order to design effective systems and have effective interactions across differences.
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