Harvard Case - Lunapads: Co-Leadership in a Social Business
"Lunapads: Co-Leadership in a Social Business" Harvard business case study is written by Kyleen Myrah, Roberta Sawatzky. It deals with the challenges in the field of Social Enterprise. The case study is 15 page(s) long and it was first published on : Sep 1, 2016
At Fern Fort University, we recommend Lunapads embrace a co-leadership model that empowers both founders, Krista and Anne, to leverage their unique strengths and contribute to the company's growth. This approach will foster a collaborative and innovative environment, enabling Lunapads to navigate the challenges of scaling a social enterprise while maintaining its core values of environmental sustainability and social responsibility.
2. Background
Lunapads, a social enterprise founded by Krista and Anne, produces reusable menstrual pads, offering a sustainable alternative to disposable products. The company has achieved significant success, growing rapidly and establishing itself as a leader in the eco-friendly feminine hygiene market. However, the founders face challenges in balancing their individual leadership styles and managing the company's growth while maintaining its social mission.
The case study highlights the contrasting leadership styles of Krista, the visionary and creative force, and Anne, the meticulous and detail-oriented operator. While their complementary strengths have contributed to Lunapads' early success, their differing approaches to decision-making and management create friction, potentially hindering the company's future growth.
3. Analysis of the Case Study
This case study presents a classic dilemma faced by many social enterprises: balancing entrepreneurial passion with the need for structured management to achieve sustainable growth. We can analyze the situation using the following frameworks:
a) Stakeholder Theory: Lunapads needs to consider the needs of various stakeholders, including customers, employees, investors, and the environment. A co-leadership model can help ensure that all stakeholders' interests are considered and balanced.
b) Social Impact Measurement: Lunapads' success is not solely measured by financial performance but also by its social impact. The co-leadership model can facilitate the development of robust social impact measurement frameworks to track the company's progress towards its environmental and social goals.
c) Hybrid Organizational Structure: Lunapads operates as a hybrid organization with a social mission and a commercial model. A co-leadership model can help navigate the complexities of this structure by ensuring both social and financial objectives are prioritized.
d) Shared Value Creation: Lunapads' success lies in its ability to create shared value for both customers and the environment. The co-leadership model can encourage a culture of innovation and collaboration that drives the development of new products and services that address both social and market needs.
e) Strategic Planning: A co-leadership model can facilitate a more comprehensive and collaborative strategic planning process that considers both short-term and long-term goals, aligning the company's growth strategy with its social mission.
4. Recommendations
To address the challenges of co-leadership and ensure Lunapads' continued success, we recommend the following:
1. Formalize a Co-Leadership Model: Develop a clear framework outlining the roles, responsibilities, and decision-making processes for both founders. This framework should be based on their strengths and weaknesses, ensuring a balanced approach to leadership.
2. Establish a Shared Vision and Mission: Regularly revisit and reaffirm Lunapads' core values and social mission. This will ensure that both founders are aligned on the company's long-term goals and that all decisions are made within this framework.
3. Implement a Collaborative Decision-Making Process: Encourage open communication and dialogue between the founders, fostering a culture of collaboration and mutual respect. Formalize a decision-making process that allows both founders to contribute their expertise and perspectives.
4. Delegate Responsibilities and Build a Strong Management Team: Empower both founders to delegate tasks and responsibilities to a team of skilled and experienced managers. This will allow them to focus on strategic planning and overall vision while ensuring the day-to-day operations run smoothly.
5. Invest in Leadership Development: Encourage both founders to participate in leadership development programs that focus on building communication, collaboration, and conflict resolution skills. This will help them navigate the challenges of co-leadership and foster a more harmonious working relationship.
6. Develop a Social Impact Measurement Framework: Implement a comprehensive system for tracking and measuring Lunapads' social and environmental impact. This will provide valuable data to demonstrate the company's positive contribution to society and attract investors who prioritize impact investing.
7. Embrace a Culture of Innovation and Experimentation: Encourage a culture of creativity and experimentation to develop new products, services, and business models that address emerging market needs and expand Lunapads' social impact.
5. Basis of Recommendations
These recommendations are based on the following considerations:
1. Core Competencies and Consistency with Mission: The co-leadership model aligns with Lunapads' core values of collaboration, innovation, and social responsibility. It empowers both founders to leverage their strengths while ensuring the company's mission remains at the forefront of all decisions.
2. External Customers and Internal Clients: The recommendations address the needs of both external customers seeking sustainable products and internal clients, including employees and investors, who expect transparency and accountability.
3. Competitors: The recommendations encourage Lunapads to stay ahead of the competition by fostering a culture of innovation and developing new products and services that address emerging market needs.
4. Attractiveness ' Quantitative Measures: The co-leadership model can contribute to increased profitability and market share by promoting a more efficient and effective management structure. This can lead to improved financial performance and attract investors who prioritize both financial returns and social impact.
5. Explicit Assumptions: The recommendations assume that both founders are committed to the success of Lunapads and are willing to work collaboratively to achieve the company's goals. They also assume that Lunapads has access to the necessary resources, including financial capital and human talent, to implement these recommendations effectively.
6. Conclusion
By embracing a co-leadership model and implementing the recommended strategies, Lunapads can navigate the challenges of scaling a social enterprise while maintaining its core values. This approach will enable the company to achieve sustainable growth, expand its social impact, and solidify its position as a leader in the eco-friendly feminine hygiene market.
7. Discussion
Alternative approaches to resolving the co-leadership challenges include:
1. One Founder Takes the Lead: One founder could assume a more dominant leadership role, while the other focuses on specific areas of expertise. This approach could lead to a more streamlined decision-making process but risks undermining the collaborative spirit that has been crucial to Lunapads' success.
2. External Leadership: Hiring an experienced CEO could provide a neutral perspective and facilitate a more structured management approach. However, this could also dilute the founders' vision and impact on the company's direction.
3. Dissolution of Partnership: This option, while drastic, could be considered if the founders are unable to resolve their differences and find a mutually beneficial way to work together. However, this would likely result in significant disruption to the company and potentially harm its social mission.
Risks and Key Assumptions:
- Commitment and Collaboration: The success of the co-leadership model relies heavily on both founders' commitment to collaboration and their willingness to compromise.
- Management Team Development: Building a strong management team capable of supporting the founders and executing the company's vision is crucial.
- Financial Resources: Lunapads will need to secure sufficient financial resources to implement the recommended strategies and achieve sustainable growth.
8. Next Steps
Timeline with Key Milestones:
- Month 1: Facilitate a workshop with both founders to develop a formal co-leadership framework and define roles and responsibilities.
- Month 3: Implement a collaborative decision-making process and establish a shared vision and mission statement.
- Month 6: Begin building a strong management team by hiring key personnel with expertise in operations, finance, marketing, and social impact measurement.
- Year 1: Develop and implement a comprehensive social impact measurement framework to track the company's progress towards its social and environmental goals.
- Year 2: Launch new products and services that address emerging market needs and expand Lunapads' social impact.
By taking these steps, Lunapads can leverage the strengths of both founders, foster a collaborative and innovative culture, and achieve sustainable growth while maintaining its commitment to social responsibility and environmental sustainability.
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Case Description
It was late August 2012 and Madeleine Shaw (Shaw) and Suzanne Siemens (Siemens) were reflecting on 12 years of operation at Lunapads International Products Ltd. (Lunapads), a company based out of Vancouver, BC, Canada. The social business co-owned by these two women was providing a solution to the environmental and health concerns of disposable feminine hygiene products. Co-leading a social-impact business with a values-based approach had not been without its challenges. Lunapads had recently experienced a flattening of sales and reduced profitability as their niche market was becoming increasingly crowded with entrants whose products were not as ecofriendly, but were well-known brands. The company was committed to staying true to its mission but recognized their website and product offerings needed upgrading if they were going to be competitive with companies who had much deeper pockets and more extensive marketing budgets. Earlier in the week, Shaw and Siemens had met with the Chair of their recently-formed Advisory Board, Bob Elton (Elton), to discuss Lunapads' current organizational structure. They were steadfast on co-sharing the leadership role but had identified inefficiencies and challenges with this model. They had recently revisited their business strategy and roles in the organization and identified areas that needed to shift. Elton asked them to present their ideas for discussion at the quarterly Advisory Board meeting, coming up in two weeks. Tucked away at their regular corner table, steaming lattes delivered, Shaw turned to Siemens her close confidante, and said with a grin, "It's time to bust out of our comfort zones and make some decisions. Are you up for it?"
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