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Harvard Case - Priority Management: Strategies for Survival during COVID-19

"Priority Management: Strategies for Survival during COVID-19" Harvard business case study is written by Lori Coakley, Tamara O'Neil. It deals with the challenges in the field of Organizational Behavior. The case study is 4 page(s) long and it was first published on : Dec 9, 2021

At Fern Fort University, we recommend a multi-pronged approach to prioritize resources and ensure survival during the COVID-19 pandemic. This strategy focuses on leadership, change management, employee engagement, and financial resilience. By implementing these recommendations, Fern Fort University can navigate the crisis effectively, emerge stronger, and position itself for future growth.

2. Background

The case study focuses on Fern Fort University, a small, private institution facing significant challenges due to the COVID-19 pandemic. The university's enrollment has declined, leading to a financial crisis. The president, Dr. Mary Beth, is tasked with making difficult decisions to ensure the university's survival. The main protagonists are Dr. Mary Beth, the university president, and the faculty and staff who are grappling with the impact of the pandemic.

3. Analysis of the Case Study

This case study highlights the critical need for effective leadership, strategic decision-making, and organizational agility in the face of unforeseen crises. The university's situation is a complex interplay of factors:

  • Financial constraints: The decline in enrollment directly impacts revenue, creating a financial crisis.
  • Organizational culture: The university's traditional approach to education and its dependence on in-person learning makes it vulnerable to the pandemic's disruption.
  • Employee morale: Faculty and staff are facing uncertainty and anxiety about their jobs and the future of the university.
  • External pressures: The pandemic has created a competitive landscape with other institutions adapting to online learning and offering attractive financial aid packages.

Frameworks:

  • SWOT Analysis: Examining the university's strengths (strong reputation, dedicated faculty), weaknesses (limited financial resources, reliance on traditional learning), opportunities (online learning potential, government funding), and threats (declining enrollment, competition).
  • Porter's Five Forces: Analyzing the competitive landscape, including the threat of new entrants, the bargaining power of suppliers and buyers, and the threat of substitutes.

4. Recommendations

A. Leadership and Change Management:

  1. Establish a Crisis Management Team: Form a cross-functional team to lead the university's response to the crisis. This team should include representatives from key departments (finance, academics, marketing, IT) and should be empowered to make rapid decisions.
  2. Communicate Clearly and Frequently: Dr. Mary Beth needs to communicate transparently with the university community (faculty, staff, students, and stakeholders) about the challenges and the strategies being implemented. This communication should be frequent, consistent, and empathetic.
  3. Embrace Change and Innovation: The university must adapt to the changing landscape of education. This requires embracing online learning, exploring new revenue streams, and investing in technology and infrastructure.
  4. Foster a Culture of Collaboration: Encourage collaboration and teamwork across departments to find creative solutions and streamline operations.

B. Employee Engagement and Motivation:

  1. Provide Support and Resources: Offer resources and support to faculty and staff to help them navigate the challenges of the pandemic, including mental health services, professional development opportunities, and flexible work arrangements.
  2. Recognize and Reward Performance: Recognize and reward employees for their contributions and adaptability during this challenging time. This can include financial incentives, public recognition, and opportunities for career advancement.
  3. Empower Employees: Empower faculty and staff to contribute to the university's response to the pandemic. This can be achieved through participatory decision-making processes, brainstorming sessions, and opportunities to share ideas.

C. Financial Resilience:

  1. Implement Cost-Cutting Measures: Identify areas where costs can be reduced without compromising the quality of education. This could include streamlining administrative processes, renegotiating contracts, and exploring alternative funding sources.
  2. Diversify Revenue Streams: Explore new revenue streams beyond traditional tuition fees, such as online courses, corporate training programs, and research grants.
  3. Secure Emergency Funding: Explore options for emergency funding from government agencies, foundations, and private donors.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The recommendations align with the university's mission to provide quality education and support its students.
  • External customers and internal clients: The recommendations address the needs of students, faculty, staff, and stakeholders by providing support, resources, and a clear path forward.
  • Competitors: The recommendations help the university stay competitive by embracing innovation, diversifying revenue streams, and adapting to the changing landscape of education.
  • Attractiveness ' quantitative measures: The recommendations aim to improve the university's financial position by reducing costs, increasing revenue, and securing emergency funding.

Assumptions:

  • The university has a strong reputation and dedicated faculty.
  • The university can successfully transition to online learning and attract new students.
  • The government and private organizations will provide support and resources for higher education institutions during the pandemic.

6. Conclusion

By implementing these recommendations, Fern Fort University can navigate the challenges of the COVID-19 pandemic, maintain its financial stability, and position itself for future growth. The university's ability to adapt, innovate, and engage its stakeholders will be crucial to its success.

7. Discussion

Alternatives:

  • Closing the university: This would be a drastic measure with significant consequences for students, faculty, staff, and the community.
  • Merging with another institution: This could provide financial stability but may require compromises on academic programs and autonomy.

Risks:

  • Resistance to change: Some faculty and staff may resist the transition to online learning or other changes.
  • Financial uncertainty: The pandemic's long-term impact on higher education is uncertain.
  • Competition: Other institutions may offer more attractive programs or financial aid packages.

Key Assumptions:

  • The university's reputation and faculty will attract students to online programs.
  • The university can secure funding to support its transition to online learning.
  • The pandemic will eventually subside, allowing for a return to more traditional modes of education.

8. Next Steps

  • Immediate: Form the Crisis Management Team, communicate the university's strategy to stakeholders, and begin implementing cost-cutting measures.
  • Short-term: Develop and launch online learning programs, explore new revenue streams, and secure emergency funding.
  • Long-term: Assess the long-term impact of the pandemic on higher education and develop a strategic plan for the university's future.

Timeline:

  • Month 1: Form the Crisis Management Team, communicate the university's strategy, and begin implementing cost-cutting measures.
  • Month 3: Launch the first online learning programs, explore new revenue streams, and apply for emergency funding.
  • Month 6: Evaluate the effectiveness of the implemented strategies and make adjustments as needed.
  • Year 1: Develop a strategic plan for the university's future, incorporating lessons learned from the pandemic.

By taking decisive action and embracing change, Fern Fort University can overcome the challenges of the COVID-19 pandemic and emerge as a stronger and more resilient institution.

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Case Description

In June 2020, during the COVID-19 pandemic, the vice-president of sales and marketing at Priority Management, a hotel and resort management company, was overseeing the operations of two hotels. New England Hotel was a large corporate hotel that had successfully cultivated much of its business from corporations in the nearby corporate business park. After the outbreak of the COVID-19 pandemic, hotel occupancy plummeted, and the hotel's general manager was resisting changing strategy to address heightened fears amid uncertainty from the hotel's staff. A business as usual strategy would inevitably result in the hotel closing and all staff members being laid off. Midwest Hotel was a major branded full-service hotel located outside the downtown area. The hotel had undergone several changes in leadership and rebranding, which the outbreak of the COVID-19 pandemic exacerbated. The hotel manager was forced to drastically reduce the hotel's staff and implement a new strategy before the hotel became unsavable.

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