Harvard Case - Schuberg Philis
"Schuberg Philis" Harvard business case study is written by Thomas J. DeLong, Daniela Beyersdorfer. It deals with the challenges in the field of Organizational Behavior. The case study is 14 page(s) long and it was first published on : Mar 26, 2012
At Fern Fort University, we recommend Schuberg Philis implement a comprehensive organizational change management strategy focused on fostering a culture of innovation, employee empowerment, and collaboration. This strategy should address the company's current challenges related to leadership styles, decision-making processes, and communication patterns, while leveraging its existing strengths in technology and analytics and international business.
2. Background
Schuberg Philis, a German IT services company, faces a critical juncture. Despite a successful track record, the company struggles with a rigid organizational structure, a lack of clear communication, and a siloed approach to decision-making. This hinders innovation, employee morale, and ultimately, the company's ability to adapt to the rapidly evolving IT landscape.
The key protagonists in this case are:
- Jan Schuberg: CEO and founder, struggling to balance control with empowerment.
- Frank Philis: Managing Director, advocating for a more agile and collaborative approach.
- Employees: Facing frustration with the current organizational structure and lack of transparency.
3. Analysis of the Case Study
This case study can be analyzed through the lens of organizational behavior, specifically focusing on leadership styles, organizational culture, and change management.
Leadership Styles:
- Schuberg's autocratic leadership style creates a top-down decision-making process, stifling innovation and employee engagement.
- Philis's democratic leadership style promotes collaboration and open communication, but faces resistance from Schuberg's entrenched power.
Organizational Culture:
- The current hierarchical culture fosters a sense of fear and inhibits risk-taking.
- A lack of psychological safety prevents employees from voicing concerns and contributing their ideas.
- Siloed departments limit cross-functional collaboration and knowledge sharing.
Change Management:
- Resistance to change is a significant barrier, stemming from fear of the unknown and a lack of trust in leadership.
- The company lacks a clear communication strategy to effectively engage employees in the change process.
- The absence of a performance management system hinders individual growth and development.
4. Recommendations
To address these challenges, Schuberg Philis should implement the following recommendations:
1. Foster a Culture of Innovation and Collaboration:
- Implement a flat organizational structure: This will break down silos, encourage cross-functional collaboration, and empower employees to take ownership of their work.
- Promote open communication: Encourage regular feedback mechanisms, transparent decision-making processes, and open dialogue between leadership and employees.
- Establish a culture of psychological safety: Create a safe space for employees to voice concerns, share ideas, and take risks without fear of judgment.
- Implement a robust performance management system: Provide regular feedback, opportunities for growth, and recognition for individual contributions.
2. Empower Employees and Encourage Innovation:
- Develop a clear vision and strategy: Communicate a compelling vision for the future that inspires and motivates employees.
- Invest in employee training and development: Provide opportunities for employees to develop new skills and knowledge, fostering a culture of continuous learning.
- Create an innovation hub: Establish a dedicated space for employees to brainstorm ideas, experiment with new technologies, and develop innovative solutions.
- Implement a rewards system: Recognize and reward employees for their contributions, fostering a culture of achievement and ownership.
3. Transform Leadership Style and Decision-Making:
- Transition to a more collaborative leadership style: Encourage Schuberg to adopt a more participative approach, empowering managers and employees to make decisions.
- Implement a shared decision-making process: Develop a framework for collaborative decision-making, ensuring that all stakeholders have a voice.
- Provide leadership development opportunities: Equip managers with the skills and knowledge to effectively lead in a collaborative and innovative environment.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Schuberg Philis's core competencies in technology and analytics, while promoting a culture of innovation and collaboration that is consistent with its mission to provide high-quality IT services.
- External customers and internal clients: The recommendations aim to improve customer satisfaction by fostering a culture of innovation and responsiveness, while also addressing the needs of internal clients (employees) by creating a more engaging and rewarding work environment.
- Competitors: The recommendations help Schuberg Philis stay ahead of the competition by fostering a culture of agility, innovation, and adaptability.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to lead to increased employee engagement, improved productivity, and ultimately, enhanced profitability.
6. Conclusion
By implementing these recommendations, Schuberg Philis can transform its organizational culture, fostering a more innovative, collaborative, and employee-centric environment. This will enable the company to adapt to the rapidly changing IT landscape, attract and retain top talent, and achieve sustainable growth in the long term.
7. Discussion
Alternatives not selected:
- Maintaining the status quo: This would perpetuate the existing challenges and potentially lead to a decline in competitiveness and employee morale.
- Implementing a complete organizational overhaul: This could be too disruptive and lead to significant resistance from employees.
Risks and key assumptions:
- Resistance to change: Significant resistance from employees and leadership could hinder the implementation process.
- Lack of commitment from leadership: Without strong commitment from Schuberg and Philis, the recommendations may not be fully implemented.
- Insufficient resources: The implementation of these recommendations requires significant investment in training, technology, and leadership development.
8. Next Steps
Timeline with key milestones:
- Month 1: Develop a comprehensive change management strategy, including communication plan, training programs, and performance management system.
- Month 2-3: Implement the flat organizational structure and establish cross-functional teams.
- Month 4-6: Introduce new communication channels and encourage open dialogue between leadership and employees.
- Month 7-9: Launch innovation hub and provide training on collaborative leadership and decision-making.
- Month 10-12: Monitor progress, gather feedback, and adjust the implementation strategy as needed.
By taking these steps, Schuberg Philis can successfully navigate this critical juncture and position itself for continued success in the dynamic IT industry.
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Case Description
The Dutch professional service firm Schuberg Philis has within a few years grown into a well-known player in the Dutch IT outsourcing market and regularly wins high customer satisfaction marks. The growing workload and 100% promise to customers have increased the pressure on its non-hierarchical teams of engineers, as well as the hiring speed, which some fear could dilute their corporate culture. The three owner-directors must decide whether it is time to stop customer acquisition for a while to "get their house in order". At that moment, though, one of Shuberg Philis perhaps most important business opportunities so far arises.
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