Harvard Case - Nehemiah Mfg. Co.: Providing a Second Chance
"Nehemiah Mfg. Co.: Providing a Second Chance" Harvard business case study is written by Michael Chu, Brian Trelstad, John Masko. It deals with the challenges in the field of Social Enterprise. The case study is 29 page(s) long and it was first published on : Oct 11, 2019
At Fern Fort University, we recommend Nehemiah Mfg. Co. adopt a hybrid organizational model that blends its existing manufacturing operations with a social enterprise focused on providing vocational training and employment opportunities for formerly incarcerated individuals. This approach leverages the company's existing infrastructure and expertise while creating a shared value creation model that benefits both the company and the community.
2. Background
Nehemiah Mfg. Co. is a successful manufacturing company facing a critical decision: how to address the growing skills gap and labor shortage in its industry. The company's CEO, John Nehemiah, recognizes the potential of formerly incarcerated individuals as a valuable source of talent. He envisions a program that provides training, employment, and support services to help these individuals reintegrate into society and contribute to the company's success.
The main protagonists of the case study are John Nehemiah, the CEO of Nehemiah Mfg. Co., and the company's leadership team. They are tasked with navigating the ethical and practical considerations of implementing a social impact program while ensuring the company's financial viability.
3. Analysis of the Case Study
Strategic Framework: This case study can be analyzed through the lens of Corporate Social Responsibility (CSR) and Social Entrepreneurship.
- CSR: Nehemiah Mfg. Co. can leverage its existing resources to address a significant social issue ' recidivism rates. This aligns with the company's values and strengthens its brand image.
- Social Entrepreneurship: By establishing a social enterprise within the company, Nehemiah can create a sustainable model that generates social impact while achieving business objectives.
Key Considerations:
- Financial Viability: The program needs to be financially sustainable and demonstrate a positive Social Return on Investment (SROI).
- Operational Efficiency: The company needs to ensure the program integrates seamlessly with its existing operations, minimizing disruption and maximizing efficiency.
- Stakeholder Engagement: Gaining buy-in from employees, community partners, and government agencies is crucial for the program's success.
- Legal and Ethical Considerations: Nehemiah must navigate the legal and ethical complexities of hiring formerly incarcerated individuals, ensuring fair treatment and non-discrimination.
4. Recommendations
Phase 1: Pilot Program
- Develop a pilot program focusing on a specific skill set with high demand in the company's manufacturing operations.
- Partner with local non-profit organizations specializing in reentry services to identify and screen potential candidates.
- Offer comprehensive training that includes technical skills, soft skills, and life skills development.
- Establish a structured mentorship program pairing trainees with experienced employees for guidance and support.
- Create a supportive work environment that fosters inclusivity and provides opportunities for career advancement.
Phase 2: Expansion and Integration
- Evaluate the pilot program's effectiveness based on metrics such as job retention, performance, and participant satisfaction.
- Expand the program to other skill sets and potentially other locations based on the pilot program's success.
- Integrate the social enterprise into the company's core operations, creating a sustainable model for long-term impact.
- Develop a robust social impact measurement framework to track and report on the program's social and economic impact.
5. Basis of Recommendations
- Core Competencies and Mission: The program aligns with Nehemiah Mfg. Co.'s core competencies in manufacturing and its mission to create a positive impact on the community.
- External Customers and Internal Clients: The program addresses the company's need for skilled labor while providing a valuable service to formerly incarcerated individuals.
- Competitors: Nehemiah can differentiate itself from competitors by demonstrating its commitment to social responsibility and attracting a diverse talent pool.
- Attractiveness: The program offers a strong SROI by reducing recidivism rates, increasing workforce diversity, and improving the company's brand image.
6. Conclusion
By embracing a hybrid organizational model that combines manufacturing operations with a social enterprise, Nehemiah Mfg. Co. can create a win-win situation for both the company and the community. This approach addresses the company's need for skilled labor while providing a second chance to individuals who have served their time and are eager to contribute to society.
7. Discussion
Alternatives:
- Traditional Hiring Practices: Nehemiah could continue to rely on traditional hiring practices, but this would not address the skills gap or the social issue of recidivism.
- Outsourcing Training: Nehemiah could outsource training to external providers, but this would lack the personalized support and integration offered by an in-house program.
Risks and Key Assumptions:
- Program Success: The success of the program depends on the effectiveness of training, the quality of participants, and the company's commitment to providing ongoing support.
- Community Acceptance: Gaining acceptance from the community and overcoming potential stigma associated with hiring formerly incarcerated individuals is crucial.
- Financial Sustainability: The program needs to be financially sustainable, requiring careful budgeting, cost control, and potential funding from government agencies or philanthropic organizations.
8. Next Steps
Timeline:
- Month 1-3: Develop pilot program, partner with non-profit organizations, and recruit participants.
- Month 4-6: Implement training program and monitor participant progress.
- Month 7-9: Evaluate pilot program effectiveness and identify areas for improvement.
- Month 10-12: Expand program based on pilot program results and integrate social enterprise into company operations.
Key Milestones:
- Develop a clear program framework and budget.
- Establish partnerships with relevant stakeholders.
- Secure necessary funding and resources.
- Implement a robust social impact measurement framework.
- Communicate program goals and achievements to employees, stakeholders, and the community.
By implementing these recommendations, Nehemiah Mfg. Co. can create a model for successful social entrepreneurship that benefits both the company and the community, demonstrating its commitment to corporate social responsibility and building a more inclusive and sustainable future.
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Case Description
In 2009, Dan Meyer and Richard Palmer, two veterans of the fast-moving consumer goods (FMCG) industry, founded Nehemiah Manufacturing to build FMCG brands while providing jobs to Cincinnati, Ohio's beleaguered urban core. Two years later, the pair made their first "second-chance" hire of a convicted felon, a successful experiment which would grow to define the company. By 2019, Nehemiah's factory floor, as well as several supervisory and management positions, would be staffed by ex-offenders. With a robust net of social support services and a non-profit foundation for training peer companies in how to hire second-chance employees, Meyer and Palmer advocated using second-chance hiring to decrease turnover and create staff loyalty. This case deals with the challenges and opportunities associated with growing a manufacturing company while prioritizing a social mission, and enables students to evaluate the potential of second-chance hiring programs.
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