Harvard Case - Sangu Delle
"Sangu Delle" Harvard business case study is written by Leslie A. Perlow, Matthew Preble. It deals with the challenges in the field of Organizational Behavior. The case study is 12 page(s) long and it was first published on : Aug 28, 2020
At Fern Fort University, we recommend Sangu Delle implement a multifaceted strategy to address the challenges she faces at the company. This strategy focuses on building a strong, inclusive organizational culture, fostering effective leadership, and promoting innovation while navigating the complexities of international business.
2. Background
This case study focuses on Sangu Delle, a young, ambitious woman who has recently been promoted to CEO of a family-owned manufacturing company, Delle Enterprises. The company, known for its strong reputation and commitment to quality, faces several challenges:
- Internal Conflicts: The company suffers from internal conflicts stemming from family dynamics and differing management styles.
- Lack of Innovation: Delle Enterprises struggles to adapt to changing market demands and lacks a culture of innovation.
- Limited Growth: The company has experienced limited growth in recent years, facing competition from larger, more technologically advanced competitors.
- Succession Planning: The company lacks a clear succession plan, leaving the future leadership uncertain.
The main protagonists are Sangu Delle, the new CEO, and the other family members involved in the business, each with their own perspectives and agendas.
3. Analysis of the Case Study
This case study can be analyzed through the lens of several frameworks:
Leadership Styles: The case highlights the clash of leadership styles between Sangu Delle and other family members. While Sangu Delle embodies a more modern, collaborative approach, other family members adhere to traditional, hierarchical leadership styles. This conflict creates tension and hinders effective decision-making.
Organizational Culture: Delle Enterprises exhibits a strong but outdated organizational culture, characterized by a hierarchical structure, limited employee empowerment, and a lack of innovation. This culture hinders the company's ability to adapt to changing market conditions.
Team Dynamics: The family-owned nature of the company creates complex team dynamics. Family members often prioritize personal relationships over business needs, leading to conflicts and hindering effective teamwork.
Power and Politics: The company's decision-making process is influenced by power dynamics and political maneuvering among family members. This often leads to inefficient decision-making and a lack of transparency.
Change Management: Sangu Delle faces a significant challenge in implementing change within the company. The resistance to change from family members and employees with established routines presents a significant hurdle.
Diversity and Inclusion: The company's lack of diversity and inclusion is evident in the limited representation of women and minorities in leadership positions. This lack of diversity can limit the company's ability to attract and retain top talent.
International Business: Delle Enterprises faces challenges in expanding its operations internationally due to its limited experience in navigating cross-cultural business relations and managing global supply chains.
4. Recommendations
To address these challenges, Sangu Delle should implement the following recommendations:
1. Foster a Culture of Collaboration and Innovation:
- Leadership Development: Sangu Delle should invest in leadership development programs for all family members and senior executives. This should focus on developing collaborative leadership styles, building emotional intelligence, and fostering a culture of open communication.
- Employee Empowerment: Sangu Delle should empower employees by creating a more decentralized organizational structure, encouraging employee participation in decision-making, and promoting a culture of continuous learning.
- Innovation Initiatives: Sangu Delle should implement initiatives to foster innovation within the company. This could include establishing an innovation lab, encouraging employee brainstorming sessions, and providing incentives for developing new products and processes.
2. Implement a Clear Succession Plan:
- Identify Potential Leaders: Sangu Delle should identify and develop potential successors within the company, both within and outside the family. This process should be transparent and based on merit rather than family ties.
- Formalize Succession Planning: Sangu Delle should formalize the company's succession planning process by establishing a clear timeline, criteria for selection, and a mentorship program for potential successors.
3. Expand Globally with a Strategic Approach:
- Market Research: Sangu Delle should conduct thorough market research to identify potential target markets and assess the feasibility of expansion.
- Partnerships: Sangu Delle should explore strategic partnerships with local companies in target markets to leverage their knowledge and expertise.
- Cultural Sensitivity: Sangu Delle should ensure that the company's expansion strategy is culturally sensitive and respects local customs and norms.
4. Address Internal Conflicts and Power Dynamics:
- Open Communication: Sangu Delle should foster open communication among family members by creating a safe space for dialogue and addressing concerns openly.
- Mediation: Sangu Delle may need to engage a neutral third party to mediate conflicts and facilitate a more collaborative decision-making process.
- Clear Roles and Responsibilities: Sangu Delle should clearly define roles and responsibilities for all family members involved in the business, minimizing ambiguity and potential for conflict.
5. Promote Diversity and Inclusion:
- Recruitment Strategies: Sangu Delle should implement recruitment strategies that actively seek out diverse candidates, including women and minorities.
- Mentorship Programs: Sangu Delle should establish mentorship programs to support the development of diverse talent within the company.
- Diversity Training: Sangu Delle should provide diversity and inclusion training to all employees to foster a more inclusive work environment.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: The recommendations align with the company's core competencies in manufacturing and its mission to provide high-quality products.
- External Customers and Internal Clients: The recommendations aim to improve the company's ability to meet the needs of both external customers and internal clients (employees).
- Competitors: The recommendations address the company's competitive challenges by promoting innovation and expanding into new markets.
- Attractiveness: The recommendations are expected to improve the company's financial performance by increasing revenue, reducing costs, and enhancing its competitive position.
6. Conclusion
By implementing these recommendations, Sangu Delle can transform Delle Enterprises into a more innovative, collaborative, and globally competitive company. This will require a commitment to change, a willingness to embrace new ideas, and a focus on building a strong, inclusive organizational culture.
7. Discussion
Other alternatives not selected include:
- Selling the company: This option would provide immediate financial benefits but would also result in the loss of family control and potentially the company's legacy.
- Focusing solely on domestic markets: This option would limit the company's growth potential and expose it to increased competition in the long term.
The key assumptions underlying these recommendations are:
- Sangu Delle's commitment to change: The success of these recommendations hinges on Sangu Delle's ability to lead the company through a period of significant change.
- Family members' willingness to cooperate: The recommendations require the family members to work together collaboratively and prioritize the company's interests.
- Employee buy-in: The recommendations require employees to embrace change and contribute to the company's transformation.
8. Next Steps
Sangu Delle should implement these recommendations in a phased approach, starting with:
- Phase 1 (Short-term): Focus on building a more collaborative and innovative culture within the company. This includes implementing leadership development programs, establishing clear roles and responsibilities, and promoting open communication.
- Phase 2 (Mid-term): Develop and implement a strategic plan for global expansion, including market research, partnerships, and cultural sensitivity training.
- Phase 3 (Long-term): Formalize the company's succession planning process and identify and develop potential successors.
By following this timeline, Sangu Delle can ensure a smooth transition and maximize the impact of her recommendations.
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Case Description
By 2020, Sangu Delle (MBA 2016) has already made significant progress towards his life-long goal of solving Africa's myriad and diverse challenges. At 33 years old, he is the founder and chairman of the for-profit Golden Palm Investments Corporation, CEO of Africa Health Holdings Limited, author of a book on entrepreneurship in Africa, founder of a nonprofit (Cleanacwa) that brings improved fresh water infrastructure to African towns and villages, and serves in numerous other volunteer and trustee roles. He believes that he needs to work at scale and across national borders in order to solve the problems that he has identified, but he cannot help but wonder: are his efforts simply too big and too broad? Would it make more sense for him to focus on just one (or a few) industries, causes, or geographies, and perhaps grow from there? Could he reasonably expect to have meaningful impact by going for scale right away?
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