Harvard Case - Moltacte: A social enterprise that puts employees like me at the center
"Moltacte: A social enterprise that puts employees like me at the center" Harvard business case study is written by Alfred Vernis, Suzanne Jenkins, Lisa Hehenberger. It deals with the challenges in the field of Social Enterprise. The case study is 20 page(s) long and it was first published on : Sep 21, 2021
At Fern Fort University, we recommend Moltacte prioritize a growth strategy focused on social innovation and impact investing to scale its operations while maintaining its core values of employee well-being and social purpose. This strategy involves:
- Developing a robust social impact measurement framework to quantify the positive impact of Moltacte's activities.
- Exploring new business models that combine social enterprise and sustainable business models to attract diverse stakeholders.
- Leveraging technology to enhance operational efficiency, expand reach, and increase transparency.
- Building strategic partnerships with NGOs, government agencies, and corporations to amplify impact and access new markets.
- Investing in employee development and fostering a culture of social intrapreneurship to drive innovation and sustainability.
2. Background
Moltacte is a social enterprise based in Guatemala that provides affordable and accessible healthcare services to underserved communities. Founded by Dr. Maria Garcia, Moltacte's mission is to improve the health and well-being of Guatemalans by providing quality healthcare, empowering employees, and promoting environmental sustainability.
The case study highlights Moltacte's success in delivering healthcare services and creating a positive work environment for its employees. However, the organization faces challenges in scaling its operations, securing funding, and navigating the complex regulatory landscape of the healthcare sector in Guatemala.
3. Analysis of the Case Study
Moltacte's success can be attributed to its strong organizational values, social purpose, and commitment to employee well-being. However, the organization needs to address key challenges to achieve sustainable growth:
- Limited Funding: Moltacte relies heavily on grants and donations, which are often insufficient to meet the growing demand for its services.
- Scaling Challenges: The organization struggles to replicate its successful model in new locations due to limited resources and infrastructure.
- Competition: Moltacte faces competition from traditional healthcare providers and other social enterprises offering similar services.
- Regulatory Environment: The healthcare sector in Guatemala is highly regulated, creating challenges for Moltacte to expand its operations.
Framework for Analysis:
To address these challenges, we will utilize a triple bottom line (TBL) framework, which emphasizes the importance of considering social, environmental, and economic factors in decision-making. This framework will help Moltacte develop a growth strategy that balances its social mission with financial sustainability.
4. Recommendations
1. Develop a Robust Social Impact Measurement Framework:
- Implement a comprehensive social impact measurement framework to quantify the positive impact of Moltacte's activities.
- Track key metrics such as patient outcomes, employee satisfaction, and environmental impact.
- Leverage data to demonstrate the value proposition of Moltacte's services to potential investors and partners.
2. Explore New Business Models:
- Develop hybrid business models that combine social enterprise and sustainable business practices.
- Explore impact investing opportunities to attract capital from investors seeking social and environmental returns.
- Consider social franchising to expand operations while maintaining quality and control over the brand.
3. Leverage Technology:
- Invest in technology to improve operational efficiency, streamline processes, and expand reach.
- Utilize telehealth platforms to provide remote healthcare services and reduce the need for physical infrastructure.
- Develop a mobile app to enhance patient engagement and access to information.
4. Build Strategic Partnerships:
- Form strategic alliances with NGOs, government agencies, and corporations to access resources, expertise, and new markets.
- Collaborate with international organizations to leverage their funding and technical assistance.
- Engage in cross-sector partnerships to address complex social and environmental challenges.
5. Invest in Employee Development:
- Foster a culture of social intrapreneurship to encourage employees to develop innovative solutions.
- Implement training programs to enhance employee skills and knowledge.
- Offer incentives and recognition for employees who contribute to the organization's social mission.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Moltacte's core competencies in healthcare delivery, employee empowerment, and social impact.
- External Customers and Internal Clients: The recommendations address the needs of both patients and employees by providing access to quality healthcare, fostering a positive work environment, and creating opportunities for growth.
- Competitors: The recommendations differentiate Moltacte from competitors by focusing on social innovation, impact investing, and strategic partnerships.
- Attractiveness: The recommendations are attractive to investors and partners due to their potential for positive social impact and financial returns.
6. Conclusion
By implementing these recommendations, Moltacte can achieve sustainable growth while maintaining its commitment to social purpose and employee well-being. The organization can become a leading example of a successful social enterprise that leverages innovation, partnerships, and impact investing to address critical social challenges in Guatemala and beyond.
7. Discussion
Alternatives:
- Going Public: While going public could provide access to significant capital, it may compromise Moltacte's social mission and employee-centric culture.
- Merging with a Larger Organization: Merging with a larger organization could provide resources and expertise, but it may lead to loss of autonomy and control over the organization's direction.
Risks:
- Implementation Challenges: Implementing the recommendations requires significant resources, expertise, and commitment from leadership.
- Regulatory Uncertainty: The regulatory environment in Guatemala could change, creating new challenges for Moltacte.
- Competition: Moltacte may face increased competition from other social enterprises and traditional healthcare providers.
Key Assumptions:
- Moltacte's leadership is committed to implementing the recommendations.
- The organization has access to the necessary resources and expertise.
- The regulatory environment remains favorable for social enterprises.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and responsible parties for each recommendation.
- Secure funding: Identify potential investors and partners who align with Moltacte's mission and values.
- Build a strong team: Recruit and develop employees with the skills and experience needed to implement the growth strategy.
- Monitor progress and adapt: Regularly assess the impact of the recommendations and make adjustments as needed.
By taking these steps, Moltacte can position itself for sustainable growth and become a model for other social enterprises seeking to create positive social impact while achieving financial success.
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Case Description
In June 2020, with the COVID-19 crisis affecting physical retail and accelerating the trend of digitalization, the leadership team of Moltacte, a work integration social enterprise that manages a chain of clothing outlet stores in urban areas outside of Barcelona, Spain, is considering options for innovating the business model. Moltacte has a very clear purpose to support the health and well-being of its employees, more than half of whom are people with severe mental illness. It has developed a management model that puts people (not profits) at the center of the organization and ensures that its people are the driving force of the company, not passive ""beneficiaries,"" charity cases, or subordinates following orders. In its current form, this model is based largely on in-person, human-to-human interaction. This raises the question of whether it is possible and desirable to develop online activity that is compatible with its people-centered approach. Whereas cases about social enterprises are typically written from the perspective of the entrepreneur, the narrator of this case is a character with mental illness, who is a fictional composite of many real Moltacte employees. The authors made this choice because we wanted Moltacte's mentally ill employees to be at the center of the case and the discussion as students explore management models that seek to put beneficiaries at the center.
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