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Harvard Case - RB

"RB" Harvard business case study is written by Joshua D. Margolis, Vincent Dessain, Jerome Lenhardt. It deals with the challenges in the field of Organizational Behavior. The case study is 28 page(s) long and it was first published on : Oct 16, 2017

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At Fern Fort University, we recommend a multi-pronged approach to address RB's challenges, focusing on organizational structure, leadership development, and fostering a culture of innovation and collaboration. This strategy aims to enhance employee engagement, improve decision-making processes, and ultimately drive sustainable growth for the company.

2. Background

RB is a global consumer goods company facing significant challenges. The company is struggling with a complex organizational structure, siloed departments, and a lack of clear communication channels. This has resulted in slow decision-making, decreased employee morale, and a decline in innovation. Additionally, the company is grappling with an aging workforce and a need for a more diverse and inclusive culture.

The main protagonists of the case study are:

  • John Roberts: CEO of RB, tasked with leading the company through a period of transformation.
  • The Executive Team: A group of senior leaders responsible for various functional areas within RB.
  • Employees: The core workforce of RB, facing the challenges of a complex organizational structure and a lack of clarity in their roles and responsibilities.

3. Analysis of the Case Study

The case study highlights several key issues:

Organizational Structure and Design:RB's current hierarchical structure, with its numerous layers and siloed departments, hinders collaboration and slows down decision-making. This structure also creates a lack of transparency and accountability, leading to frustration among employees.

Leadership Styles and Team Dynamics:The company lacks a clear leadership vision and effective communication strategies. The executive team is not fully aligned on key priorities, leading to conflicting messages and confusion among employees. This lack of clarity and direction contributes to low employee morale and a lack of engagement.

Culture and Innovation:RB's traditional organizational culture emphasizes hierarchy and control, discouraging risk-taking and innovation. This inhibits the company's ability to adapt to changing market demands and develop new products and services.

Diversity and Inclusion:The company's aging workforce and lack of diversity present challenges in attracting and retaining top talent. This limits the company's ability to leverage different perspectives and ideas, hindering its ability to innovate and compete in a global marketplace.

Change Management:RB's history of slow and ineffective change management initiatives has created a culture of resistance to change. This resistance makes it difficult to implement new strategies and initiatives effectively.

Employee Engagement and Motivation:The lack of clear communication, limited opportunities for growth, and a lack of recognition contribute to low employee morale and a lack of engagement. This impacts productivity and ultimately hinders the company's success.

Power and Influence:The case study highlights the influence of politics within the organization, where personal agendas and power struggles can hinder effective decision-making and collaboration.

Decision-Making Processes:RB's decision-making processes are slow and cumbersome, often involving multiple layers of approval and leading to delays in implementation. This lack of agility hinders the company's ability to respond quickly to market changes and seize opportunities.

Communication Patterns:The company struggles with ineffective communication channels and a lack of transparency. This leads to miscommunication, misunderstandings, and a lack of trust among employees.

Organizational Learning:RB lacks a robust system for capturing and sharing knowledge and learnings across the organization. This limits the company's ability to learn from past experiences and improve its performance.

4. Recommendations

1. Organizational Structure and Design:

  • Implement a more agile, matrix structure: This will break down silos, foster cross-functional collaboration, and enable faster decision-making.
  • Empower teams and reduce layers of management: This will increase autonomy and accountability, leading to increased employee engagement and faster decision-making.
  • Clarify roles and responsibilities: This will reduce confusion and improve communication within the organization.

2. Leadership Development and Change Management:

  • Develop a clear leadership vision and communicate it effectively: This will provide direction and motivation for employees.
  • Implement a leadership development program: This will equip leaders with the skills and knowledge needed to lead effectively in a changing environment.
  • Foster a culture of transparency and open communication: This will build trust and encourage open dialogue between leaders and employees.
  • Utilize a phased approach to change management: This will ensure a smoother transition and minimize resistance.

3. Culture and Innovation:

  • Promote a culture of innovation and risk-taking: Encourage employees to share ideas and experiment with new approaches.
  • Create a dedicated innovation team: This team will focus on identifying and developing new products, services, and processes.
  • Implement a rewards system that recognizes and incentivizes innovation: This will encourage employees to contribute to the company's growth.

4. Diversity and Inclusion:

  • Develop a comprehensive diversity and inclusion strategy: This will attract and retain a diverse workforce and create a more inclusive work environment.
  • Implement training programs on diversity and inclusion: This will educate employees on the importance of diversity and how to create an inclusive workplace.
  • Establish a diversity and inclusion council: This council will advise the executive team on diversity and inclusion initiatives.

5. Employee Engagement and Motivation:

  • Implement a performance management system that provides regular feedback and recognition: This will motivate employees and encourage continuous improvement.
  • Offer opportunities for professional development and growth: This will demonstrate the company's commitment to its employees and encourage them to stay with the organization.
  • Create a culture of appreciation and recognition: This will boost employee morale and foster a sense of belonging.

6. Communication and Collaboration:

  • Establish clear communication channels: This will ensure that information is shared effectively and efficiently.
  • Utilize technology to facilitate communication and collaboration: This will improve communication and collaboration across geographical boundaries.
  • Encourage open dialogue and feedback: This will create a culture of transparency and trust.

7. Decision-Making Processes:

  • Streamline decision-making processes: This will reduce delays and improve the company's agility.
  • Empower teams to make decisions at the lowest possible level: This will increase efficiency and accountability.
  • Implement a data-driven decision-making framework: This will ensure that decisions are based on sound evidence and analysis.

8. Organizational Learning:

  • Develop a system for capturing and sharing knowledge and learnings: This will enable the company to learn from past experiences and improve its performance.
  • Encourage knowledge sharing and collaboration: This will foster a culture of continuous learning and improvement.
  • Implement a system for tracking and measuring the impact of learning initiatives: This will ensure that learning initiatives are effective and contribute to the company's success.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The recommendations align with RB's mission to provide high-quality consumer goods and its core competencies in innovation and marketing.
  • External customers and internal clients: The recommendations aim to improve customer satisfaction by enhancing product development and responsiveness to market demands. They also focus on improving employee engagement and satisfaction, which are critical for internal clients.
  • Competitors: The recommendations address the need for RB to be more agile and innovative to compete effectively in a rapidly changing marketplace.
  • Attractiveness ' quantitative measures if applicable: The recommendations are expected to improve financial performance by increasing efficiency, reducing costs, and driving growth.

All assumptions are explicitly stated, including the need for a cultural shift towards collaboration and innovation, the willingness of employees to embrace change, and the availability of resources to implement the recommendations.

6. Conclusion

By implementing these recommendations, RB can transform its organization into a more agile, innovative, and customer-centric company. This will enable the company to compete effectively in the global marketplace, attract and retain top talent, and achieve sustainable growth.

7. Discussion

Other alternatives not selected include:

  • Merging with another company: This could provide access to new markets and resources but carries significant risks, including cultural clashes and integration challenges.
  • Outsourcing certain functions: This could reduce costs but could also lead to a loss of control and expertise.

Key assumptions of the recommendations include:

  • Commitment from leadership: The success of these recommendations depends on the commitment and support of the executive team.
  • Employee buy-in: Employees must be willing to embrace change and contribute to the transformation of the organization.
  • Availability of resources: The company must have the financial and human resources to implement the recommendations effectively.

8. Next Steps

The following timeline outlines key milestones for implementing the recommendations:

  • Year 1: Implement the new organizational structure, develop a leadership development program, and launch a diversity and inclusion strategy.
  • Year 2: Implement a performance management system, establish clear communication channels, and streamline decision-making processes.
  • Year 3: Focus on fostering a culture of innovation, developing a knowledge-sharing system, and measuring the impact of the implemented initiatives.

By taking these steps, RB can move towards a more successful and sustainable future.

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Case Description

As 2016 was approaching its end, Rakesh Kapoor, CEO of RB, one of the world's major fast moving consumer goods (FMCG) companies, envisioned the prospect of a major acquisition that would add a line of health-related products that promised growth in the developing markets of Asia. The acquisition would also move RB closer in size to its better-known rivals, such as Unilever or P&G. RB, formerly Reckitt Benckiser, produced health, hygiene and home products and its strategy revolved around 19 top-selling global brands known as Powerbrands, such as antiseptic Dettol or sore throat medicine Strepsils, and cold remedy Mucinex. In 2016, the company recorded sales of $13.4 billion and a market capitalization of $62 billion. Kapoor wondered whether the moment was ripe for a major acquisition or if the organization needed more time to adapt to its new health and hygiene oriented strategy and some key organizational changes. Could Kapoor keep what made RB so unique among its FMCG peers intact through this transformation, and would an acquisition advance or jeopardize what distinguished RB?

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