Harvard Case - Design Thinking at Arena Industries: Designing an Employee Wellness Approach
"Design Thinking at Arena Industries: Designing an Employee Wellness Approach" Harvard business case study is written by Jeanne M. Liedtka. It deals with the challenges in the field of Strategy. The case study is 4 page(s) long and it was first published on : May 22, 2015
At Fern Fort University, we recommend Arena Industries implement a comprehensive employee wellness program utilizing a Design Thinking approach. This program should focus on addressing the identified needs of Arena's workforce, promoting a culture of wellbeing, and ultimately enhancing employee engagement, productivity, and retention.
2. Background
Arena Industries is a leading manufacturer of industrial equipment, facing challenges related to employee health and well-being. The company has experienced rising healthcare costs, absenteeism, and low employee morale. Recognizing the need for a strategic solution, Arena's leadership has decided to adopt a Design Thinking approach to develop an innovative employee wellness program. The case study highlights the company's current situation, the need for a holistic approach, and the potential benefits of incorporating employee feedback and a human-centered design process.
The main protagonists of the case study are:
- Arena Industries' leadership: They are responsible for initiating the change and providing resources for the program.
- The Design Thinking team: They are tasked with conducting research, generating ideas, prototyping solutions, and implementing the program.
- Arena's employees: They are the primary beneficiaries of the program and will be actively involved in its development and implementation.
3. Analysis of the Case Study
To analyze the case, we will utilize a combination of frameworks:
a) SWOT Analysis:
- Strengths: Arena's strong financial position, established brand reputation, and experienced workforce provide a solid foundation for implementing a wellness program.
- Weaknesses: The company's current lack of a comprehensive wellness program, rising healthcare costs, and low employee morale present challenges.
- Opportunities: Adopting a Design Thinking approach, leveraging technology and analytics, and fostering a culture of well-being can create significant opportunities for improvement.
- Threats: Competition for talent, economic downturns, and changing healthcare regulations pose potential threats to the program's success.
b) Porter's Five Forces:
- Threat of new entrants: The industry is relatively mature, with high barriers to entry, reducing the threat of new entrants.
- Bargaining power of buyers: Arena has a diverse customer base, reducing the power of individual buyers.
- Bargaining power of suppliers: The company has established relationships with suppliers, mitigating the risk of supplier power.
- Threat of substitute products: The industry faces competition from alternative products and services, requiring Arena to remain innovative and competitive.
- Rivalry among existing competitors: The industry is characterized by intense competition, requiring Arena to focus on differentiation and value creation.
c) Value Chain Analysis:
The program will impact various stages of Arena's value chain:
- Human Resources: The program will improve employee recruitment, retention, and engagement.
- Operations: Reduced absenteeism, improved productivity, and a healthier workforce will enhance operational efficiency.
- Marketing and Sales: A positive work environment will contribute to improved customer service and brand perception.
d) Business Model Innovation:
The program represents a business model innovation by shifting Arena's focus from purely financial performance to a more holistic approach that prioritizes employee well-being. This will lead to long-term benefits, including improved employee productivity, reduced healthcare costs, and increased employee retention.
4. Recommendations
Phase 1: Research and Design (3 months)
- Conduct a comprehensive employee survey: Gather data on employee needs, preferences, and current wellness practices.
- Analyze existing data: Review healthcare costs, absenteeism rates, and other relevant data to identify key areas of concern.
- Develop a Design Thinking team: Assemble a cross-functional team with expertise in healthcare, human resources, technology, and design.
- Conduct workshops and interviews: Engage employees in brainstorming sessions to generate ideas and gather feedback on potential solutions.
- Prototype and test: Develop and pilot test different program elements, such as fitness challenges, mindfulness workshops, and healthy eating initiatives.
Phase 2: Implementation and Evaluation (6 months)
- Launch the program: Roll out the program gradually, starting with pilot groups and expanding based on feedback.
- Develop communication strategies: Communicate the program's benefits, goals, and resources to all employees.
- Provide ongoing support: Offer resources, training, and incentives to encourage employee participation.
- Track key metrics: Monitor program impact on employee health, engagement, productivity, and healthcare costs.
- Continuously evaluate and adapt: Regularly review program effectiveness and make necessary adjustments based on feedback and data.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The program aligns with Arena's core competencies in manufacturing and operations, while also supporting its mission to create a positive and sustainable work environment.
- External customers and internal clients: The program benefits both external customers through improved product quality and service, and internal clients through increased employee satisfaction and productivity.
- Competitors: The program positions Arena as an employer of choice, enhancing its ability to attract and retain top talent in a competitive market.
- Attractiveness ' quantitative measures: The program is expected to generate a positive return on investment through reduced healthcare costs, increased productivity, and improved employee retention.
Assumptions:
- Employees will be receptive to the program and actively participate.
- The program will be effectively implemented and supported by management.
- The program will generate measurable improvements in employee health and well-being.
6. Conclusion
By implementing a comprehensive employee wellness program utilizing a Design Thinking approach, Arena Industries can create a more engaged, productive, and healthy workforce. This program will not only improve employee well-being but also enhance the company's overall performance, competitiveness, and sustainability.
7. Discussion
Alternatives:
- Traditional wellness programs: These programs typically focus on providing health information and resources, but may lack the personalized approach and engagement of a Design Thinking-based program.
- External partnerships: Partnering with external wellness providers can offer expertise and resources, but may not be as tailored to Arena's specific needs.
Risks:
- Employee resistance: Some employees may be reluctant to participate in the program.
- Lack of management support: Insufficient support from management can hinder the program's success.
- Cost considerations: The program may require significant investment in resources and infrastructure.
Key Assumptions:
- Employees are willing to participate in the program.
- Management is committed to supporting the program's implementation and success.
- The program's impact on employee health and well-being can be measured and tracked.
8. Next Steps
Timeline:
- Month 1-3: Conduct research, develop program framework, and assemble Design Thinking team.
- Month 4-6: Pilot test program elements and gather feedback.
- Month 7-9: Launch the program and implement communication strategies.
- Month 10-12: Monitor program effectiveness and make adjustments as needed.
Key Milestones:
- Completion of employee survey and data analysis.
- Development of program prototypes and pilot testing.
- Launch of the comprehensive employee wellness program.
- Ongoing evaluation and adaptation of the program based on feedback and data.
By following these recommendations and taking a proactive approach to employee well-being, Arena Industries can create a sustainable and thriving workplace that benefits both employees and the company.
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Case Description
This document is one of three available case-based simulations used as the basis for a multisession course on design thinking. The course emphasizes deep user understanding, iteration, and a focus on the possibilities as a way to enhance value creation for stakeholders. Please refer to the course teaching guide to view the additional essential pedagogical tools available to the course instructor-including several hours of video content and a set of posters that summarize ethnographic interview findings for each simulation scenario. Arena Industries is a global company seeking to improve the wellness of its employees. Students are asked to read a short introduction to Arena's business and operating philosophies, as well as details concerning the challenges present in the larger health care environment in the United States. Students play the role of a consultant who has been charged with recommending to Arena's leaders how best to address the opportunity to improve employee wellness.
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