Harvard Case - Pathways to Independence: Welfare-to-Work at Marriott International
"Pathways to Independence: Welfare-to-Work at Marriott International" Harvard business case study is written by Rosabeth Moss Kanter, Ellen Pruyne. 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 : Oct 22, 1998
At Fern Fort University, we recommend that Marriott International expand its 'Pathways to Independence' program to become a comprehensive social enterprise model, leveraging its existing infrastructure and expertise to create a sustainable business model with a triple bottom line impact. This involves integrating social innovation into its core operations, fostering shared value creation while addressing the social issue of poverty and unemployment.
2. Background
Marriott International, a leading hospitality company, launched the 'Pathways to Independence' program to address the issue of long-term unemployment and poverty by providing job training and placement opportunities for individuals receiving government assistance. The program has been successful in placing individuals in entry-level positions within Marriott hotels, but it faces challenges in achieving long-term sustainability and scalability.
The main protagonists in this case study are:
- Marriott International: A global hospitality company seeking to improve its corporate social responsibility (CSR) initiatives and create a positive societal impact.
- Nonprofit Organizations: Partners with Marriott in providing support services and resources to participants in the 'Pathways to Independence' program.
- Government Agencies: Provide funding and resources to the program and are key stakeholders in the success of the initiative.
- Participants: Individuals seeking employment opportunities and a pathway out of poverty.
3. Analysis of the Case Study
This case study can be analyzed through the lens of social entrepreneurship and stakeholder theory. Marriott is attempting to create a social enterprise that addresses a social issue (poverty and unemployment) while generating financial returns. This requires a careful consideration of all stakeholders involved, including participants, employees, investors, government agencies, and the community at large.
Key Issues:
- Sustainability and Scalability: The current program model relies heavily on external funding and partnerships, making it vulnerable to changes in government policy or funding cuts.
- Impact Measurement: Marriott needs to develop robust metrics to measure the program's social impact, including long-term employment outcomes, reduction in reliance on government assistance, and overall well-being of participants.
- Program Design: The program needs to be tailored to the specific needs and challenges of the target population, taking into account factors like education levels, skills gaps, and personal circumstances.
- Stakeholder Engagement: Marriott needs to actively engage all stakeholders, including participants, employees, and community partners, to ensure program success and alignment with their needs and expectations.
4. Recommendations
1. Develop a Sustainable Business Model:
- Social Franchising: Marriott can leverage its brand recognition and operational expertise by creating a social franchising model for the 'Pathways to Independence' program. This involves partnering with local nonprofits or community organizations to operate the program under the Marriott brand, providing training, resources, and ongoing support.
- Impact Investing: Marriott can attract impact investors who are seeking to invest in businesses with a social mission. This can provide the program with long-term funding and ensure its sustainability.
- Blended Value: Marriott can develop a 'blended value' model that combines social and financial returns. This involves creating products or services that generate revenue while simultaneously addressing social needs. For example, Marriott could offer specialized training programs to its employees, with a portion of the revenue going towards supporting the 'Pathways to Independence' program.
2. Enhance Program Design:
- Tailored Curriculum: Marriott should develop a tailored curriculum that addresses the specific needs and challenges of the target population. This may involve incorporating life skills training, financial literacy workshops, and mentorship programs.
- Career Pathways: Marriott should create clear career pathways within the hospitality industry, providing participants with opportunities for advancement and skill development.
- Diversity and Inclusion: Marriott should prioritize diversity and inclusion within the program, ensuring that it is accessible to individuals from all backgrounds and with varying abilities.
3. Strengthen Impact Measurement:
- Social Return on Investment (SROI): Marriott should conduct a thorough SROI analysis to measure the program's social impact and demonstrate its value to stakeholders.
- Data Collection and Analysis: Marriott should implement robust data collection and analysis systems to track program outcomes, including employment rates, earnings, and overall well-being of participants.
- Transparency and Reporting: Marriott should be transparent about the program's impact and report its findings to stakeholders, including investors, government agencies, and the public.
5. Basis of Recommendations
These recommendations align with Marriott's core competencies in hospitality, training, and operations, while also addressing the social issue of poverty and unemployment. The proposed social enterprise model will create a sustainable and scalable solution that benefits all stakeholders, including participants, employees, investors, and the community.
The recommendations are based on the following assumptions:
- Market demand: There is a significant demand for skilled workers in the hospitality industry.
- Government support: Government agencies will continue to support programs that promote employment and economic development.
- Investor interest: Impact investors are increasingly interested in supporting businesses with a social mission.
- Community engagement: Local communities will be supportive of the program and its goals.
6. Conclusion
By transforming the 'Pathways to Independence' program into a comprehensive social enterprise model, Marriott can create a sustainable and scalable solution that addresses the social issue of poverty and unemployment while generating financial returns. This approach aligns with Marriott's commitment to corporate social responsibility and its desire to create a positive impact on society.
7. Discussion
Alternatives:
- Traditional non-profit model: Marriott could continue to operate the program as a non-profit, relying heavily on external funding and partnerships. However, this model is less sustainable and scalable than a social enterprise approach.
- Government-funded program: Marriott could partner with government agencies to provide job training and placement services. However, this model may be subject to political and budgetary constraints.
Risks and Key Assumptions:
- Market fluctuations: Changes in the hospitality industry could impact the program's success.
- Funding challenges: Securing long-term funding from impact investors or other sources may be challenging.
- Program implementation: Successfully implementing the program requires strong leadership, effective management, and dedicated staff.
8. Next Steps
- Develop a detailed business plan: Marriott should develop a detailed business plan outlining the program's objectives, target market, revenue streams, and impact measurement strategies.
- Pilot the social franchising model: Marriott should pilot the social franchising model in a few select locations to test its feasibility and effectiveness.
- Secure impact investors: Marriott should actively seek impact investors who are interested in supporting the program's social mission.
- Build strong stakeholder relationships: Marriott should build strong relationships with all stakeholders, including participants, employees, government agencies, and community partners.
By taking these steps, Marriott can successfully transform the 'Pathways to Independence' program into a sustainable and impactful social enterprise that creates shared value for all stakeholders.
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Case Description
In 1991 Marriott International established a program called Pathways to Independence to recruit and train people from the welfare rolls. The program graduated over 1,000 people in eight years and retained about 20% more of its participants than regular hires. Now the program director wished to double the program size. The questions: Was this feasible with a decreasing supply of employable welfare recipients? Could the quality control required at Marriott be maintained with such a large and rapid expansion?
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