In 2019, Parker Hannifin, one of the world's largest manufacturers of motion and control technologies, did something unusual for an industrial company: it created a purpose statement. Even though it already had a clear business strategy and longstanding culture of empowering its employees, creating a nine-word purpose statement proved transformational. This was particularly true during the pandemic, when Parker's purpose-Enabling Engineering Breakthroughs that Lead to a Better Tomorrow-came to life as team members built parts for lifesaving ventilators and designed a filtration system that enabled the mass-production of vaccines. Now Parker's new CEO must determine how to bring Parker's purpose fully to life, using it to inspire team members, connect with customers, and guide the company as it navigates clean energy technologies and other challenges.
In 2023, Marvin Ellison, CEO of Lowe's, contemplated enhancements to the company's Total Home Strategy to accelerate performance and grow market share. In the last five years since becoming CEO, Ellison had championed a turnaround of the company, completing a comprehensive foundational reset before embarking on a forward-looking growth plan called the "Total Home Strategy." This strategic plan identified five critical areas for driving growth: elevating product assortment, driving Pro customer penetration, accelerating online business, expanding installation services, and driving localization. As Lowe's entered its second century and revenues approached $100 billion, Ellison considered ways to take the growth strategy to the next level and grab market share from its archrival Home Depot. He mulled over whether and how initiatives such as expanding the customer base to include more medium-sized and Hispanic Pros as well as do-it-yourself (DIY) male consumers, advancing online commerce, leveraging new technologies like generative AI, and increasing the localization of stores would not only uphold Lowe's legacy but also propel it to new heights.
In 2023, Deion Sanders, known as "Coach Prime," became head football coach of the University of Colorado Boulder (CU). Sanders was tasked with leading CU's struggling football program, which had only achieved one winning season in the last 15 years, back to glory. Many were excited by the idea of having the two-time Super Bowl champion and Hall of Fame inductee as CU's new head coach, but several questioned whether he had the experience and leadership needed to turn around a team in a highly competitive conference, as he only had two years of college coaching experience. In addition, some wondered whether his "old school" leadership style, which required a high level of discipline and personal accountability, would be effective on today's student-athletes, while others questioned whether his approach was sustainable.
In March 2023, Garry Cooper, cofounder and CEO of Chicago-based Rheaply, needed to demonstrate that Rheaply's expanded vision could translate into building cash flows and metrics needed to raise a Series B and turn the business into a model for financial and environmental sustainability. The eight-year-old company had originally been founded as an asset exchange platform for surplus materials at university science laboratories. Over time, the company evolved well beyond its initial market and expanded into a circular economy marketplace where cities, enterprises, and academic institutions exchanged everything from lab equipment to furniture to building materials. Cooper needed to determine whether the strategic shift to sustainability was working, and what, if anything, needed to change.
In 2023, Detroit-based Barton Malow completed the first high-rise building in the U.S. built from the top-down using LIFTbuild, a patented methodology that aimed to make construction safer and more efficient. By completing building work at ground level and then automatically lifting and locking floors into place, the new process eliminated many of the dangers and inefficiencies of constructing buildings at height. The century-old construction firm hoped its novel methodology would pave the way for a better way to build but found that innovating a well-established industry was challenging. CEO Ryan Maibach must determine how to grow the business and increase adoption of LIFTbuild.
Founded by two former Sequoia Capital partners, Columbus-Ohio-based Drive Capital's mission was to build a world-class venture capital firm in the middle of the U.S., an area historically overlooked by VCs. Drive faced early challenges of attracting investors, sourcing talent, and building entrepreneurial ecosystems, but by 2022, the firm had invested in over 90 portfolio companies and had assets under management of over $2 billion, making it the largest VC firm outside the coasts. In the Winter of 2022, cofounder and CEO Chris Olsen contemplated an investment into Forge Biologics, an Ohio-based gene therapy contract development and manufacturing company. The partnership weighed the pros and cons in the context of the fund's overall portfolio and macroeconomic headwinds facing the industry.
In May 2014, Alex Frommeyer, cofounder and CEO of Kentucky-based Beam Dental, a seed-stage startup that developed connected toothbrushes that tracked brushing habits, needed to decide which strategy to pitch to a venture capital firm. The first pitch deck played to the founders' strengths as engineers and requested funds to develop a market-leading, next-generation connected toothbrush. The second pitch deck requested capital to start a dental insurance company, an industry in which the founders had limited knowledge, that would distribute the toothbrush and offer premium credits for healthy brushing habits. This case is the first case in a two-part series (second case 723-356), and there are two supplements (723-374 and 723-375) for this case.
In May 2016, venture-backed Beam Dental was on the brink of financial collapse. Cofounder and CEO Alex Frommeyer weighed the unattractive terms of a bridge loan offered by Beam's largest investor. Frommeyer needed to decide whether to accept the terms or concede defeat and close the company. This case is the second case in a two-part series (original case 723-355); the A case has two supplements (723-374 and 723-375).
In December 2018, Susan Tynan, founder and CEO of Framebridge, a four-year-old venture-backed startup that sold online custom framing, formulated plans for the future. Her vision was to revolutionize the $4 billion industry by making custom framing easy, transparent, and affordable by leveraging digital technology and automation. Early demand for the product was strong, and Framebridge began experimenting in retail. The company built a high-tech, robotics-driven manufacturing plant in Kentucky but struggled to achieve economies of scale. In the first part of this two-part series (B case 723-353), Tynan needed to decide whether to pivot her operations strategy or remain true to the tech-enabled robotics approach in which her backers had invested. Further, she had to determine her vision for retail and how this might impact the business model.
In 2022, after revamping operations and expanding retail stores, Framebridge founder and CEO Susan Tynan is optimistic for the future but realizes changing market dynamics. New competitors are entering the market, and margin pressures remained. This case is part two of a two-part series (A case 723-353).
Jeff Harmening, CEO of General Mills, one of the world's largest manufacturers of breakfast cereals and packaged foods, was deeply disturbed and instantly aware that he and General Mills would need to respond. George Floyd, an African-American man who had been accused by a sales clerk of using a counterfeit $20 bill to buy cigarettes, had been arrested and then killed by Minneapolis police. The video of his heart-wrenching death had gone viral worldwide. In the past, the company had not typically commented on racial incidents. But this time felt different. As the leader of one of Minneapolis' largest companies, and one profoundly committed to its community, Harmening needed to determine how and to whom to respond.
Jeff Harmening, CEO of General Mills, one of the world's largest manufacturers of breakfast cereals and packaged foods, was deeply disturbed and instantly aware that he and General Mills would need to respond. George Floyd, an African-American man who had been accused by a sales clerk of using a counterfeit $20 bill to buy cigarettes, had been arrested and then killed by Minneapolis police. The video of his heart-wrenching death had gone viral worldwide. In the past, the company had not typically commented on racial incidents. But this time felt different. As the leader of one of Minneapolis' largest companies, and one profoundly committed to its community, Harmening needed to determine how and to whom to respond.
Under the leadership of Larry Miller, chairman and former president of Nike's Air Jordan brand, annual revenues for the Jordan brand soared from $150 million to over $4 billion. But for over 40 years, Miller guarded a secret. When he was younger, he spent nearly a decade in and out of prison for homicide and armed robberies. While incarcerated, he focused on his education, and graduated with honors from college. After a potential employer rescinded their offer when he disclosed his crimes, Miller decided to remain silent about his past for the next four decades. Miller hopes that sharing his story will affect positive change, serving as a source of inspiration for troubled youth and encouraging leaders to promote fair chance hiring of formerly incarcerated people.
John Henry and Carey Anne Nadeau, co-founders and co-CEOs of LOOP, an insurtech startup based in Austin, Texas, were on a mission to modernize the archaic $250 billion automobile insurance market. They sought to create equitably priced insurance by eliminating pricing factors that disproportionally affected people of color, such as credit score, income, and education. The company used sophisticated AI algorithms to analyze which roads were more prone to accidents and employed proprietary technology to track driving behavior. Moreover, the founders believed in providing a sense of community and in building a mission-driven brand that people loved, thereby altering the antagonist and distant relationship that existed between an insurance company and its customers. By the September 2021 Texas launch, the company had developed a waitlist of over 30,000 people. In March 2022, as the first policy term expired, the co-founders had to figure out which policyholders to renew and at what price to renew them. They also wondered if they could motivate drivers to become safer on the roads by investing in rewards and gamification. Going forward, by the end of 2022 Loop had plans to enter nine additional states with its revolutionary car insurance model, and contemplated removing several other pricing criteria that could be discriminatory, while incorporating metrics that might provide discounts to customers. Longer-term, the company needed to decide which strategic direction to pursue-whether to expand their fledgling company vertically by adding complementary insurance lines, like homeowners insurance, or expand horizontally to other financial services, like auto lending, that were plagued by structural biases against minorities. Given the recent lackluster performance of several high-profile insurtechs, Henry and Nadeau knew that, to achieve their goal of unseating the entrenched incumbents, they had to get these decisions right.
Jake Lisby, co-founder and CEO of Simplifyy, a property technology startup in Kansas City, Missouri, was both exhausted and exhilarated by the flurry of activity surrounding the pivot of the business model in late 2021. Simplifyy, a venture-backed PropTech company, was transforming from a full-service property management company to a pure SaaS player, selling end-to-end software to "simplify" the labor-intensive property management industry. Lisby, a Missouri native, knew that the change was not without its challenges. Running a software business in the Midwest, which lacked the entrepreneurial ecosystem of other well-known tech hubs, made it challenging to attract the necessary talent, customers, and fundraising. But the upside of pure SaaS company was attractive, and his team knew that not only to survive but to thrive, they had to get this right.