Revlon India was founded as a joint venture in 1995, pairing the industrial conglomerate UMG with the global beauty brand Revlon, Inc. to bring international color cosmetics to India. After growing rapidly and pioneering the Beauty Advisor (BA) model in India, the company began to struggle in the 2010s as it faced challenges in its sales and supply chain operations and started to lose touch with the market, all while competition rose, with new companies leveraging e-commerce platforms and international brands entering the market. In November 2023, Meghna Modi was tapped to turnaround the struggling venture. In the 5 months since her appointment, Modi had made enormous strides. She reorganized the head office, broke down silos in the sales organization, and reengaged with Revlon India's BAs. She completely revamped the company's e-commerce team, and began to collect data to understand its supply chain deficiencies. Modi also aimed to foster more accountability and learning in the company. Towards this end, she developed a Strategy Map and Balanced Scorecard (BSC) to articulate and evaluate Revlon India's business model. However, this unearthed a significant tradeoff between the company's online and offline operations. With pressure to breakeven by the end of 2024, Modi had to decide how to manage this tradeoff. Should the company emphasize either online or offline? Should it integrate them, or differentiate them? And how could the BSC be used to test potential solutions?
In summer 2021, School of Rock was a youth-oriented music education company with 291 franchise- and company-owned schools globally. Before CEO Rob Price's hire in 2017, School of Rock's nonconformist rock 'n' roll culture led to variability in teaching styles, educational outcomes, and risks for copyright violations. The previous administration's attempts to standardize curriculum and processes led to friction with franchisees. Price smoothed over the tension by better listening to franchisees and clarifying core policies while giving franchisees freedom in certain areas. One of Price's major initiatives was the Method App which provided a structure to empower and guide work at the school branches, featuring nearly 100 show programs and 1,000 copyright-compliant song choices tagged with the associated skill levels, musical concepts, and corresponding show programs. When the app launched as a minimum viable product (MVP) in October 2019, it struggled to gain traction. Some franchisees felt the MVP's functionality was flawed; others worried that the app threatened their pedagogical independence. Price's team considered several options to increase adoption: a listening tour to communicate the app's value and collect feedback for improvements; an exclusive marketing campaign for schools with a minimum level of app usage; and incentives based on School of Rock's balanced scorecard that measured performance and other metrics. Which one or more of these options would drive app adoption without reigniting tension between franchisees and the corporate office?
In 2005, Research In Motion's (RIM) BlackBerry smartphone was a sensation. After its launch in 1999, the groundbreaking BlackBerry had captured the hearts and minds of corporate America through its secure wireless email service. The device was so addictive and easy-to-use that many began calling it the "CrackBerry." Buoyed by Blackberry's success, RIM experienced exponential growth, surpassing $1 billion in revenues. But the Canadian tech firm was suffering from growing pains. Co-CEOs Mike Lazaridis and Jim Balsillie (HBS '89) had managed RIM since its early days with only 14 employees-now, it had more than 3,500. The co-CEOs struggled with day-to-day responsibilities, leading to delays in product development, sales, and network infrastructure. Balsillie and Lazaridis needed a way to manage RIM more effectively. In 2001, they hired Larry Conlee as COO. Though he brought product development on schedule and helped RIM mature into a more coordinated and efficient company, many engineers chafed under his top-down management style. In 2005, Conlee requested that the co-CEOs promote him to president, which would position him to introduce more formal systems to the entire company. This could free up the co-CEOs to focus on strategic goals. However, Conlee's promotion might also stifle innovation. With competition encroaching, this decision could prove crucial to the future of RIM. Should Balsillie and Lazaridis give Conlee the promotion he wants?
Founded in 2005, Vermont Kombucha Corp. (V-Ko) was an early mover in the fledgling U.S. market for kombucha, a drink brewed for its health benefits. Early on, the company captured more than 90% of market share. Under the leadership of its founder and CEO, Joe Williams, V-Ko went public in 2015. On the first day of trading, V-Ko's shares doubled in price, and the company closed the year with a market capitalization of approximately $2.5 billion. However, the company's growth began to slow as competitors entered the market. Though V-Ko's market share began to shrink, Williams continued to set aggressive sales targets that were increasingly difficult to reach. In 2018, the company missed its first-quarter earnings target. The company shifted its control systems and company culture, resulting in pressure on salespeople that led to the use of questionable tactics to meet sales and compensation goals. Following a tip from an anonymous employee whistleblower, V-Ko launched an investigation in 2020 that revealed overstated revenue and overstated inventory stemming from lax internal controls. Stepping into the perspective of new leadership at V-Ko, students will discuss the company's business model, sales practices and employee incentives, internal control systems, and financial reporting issues around revenue recognition (specifically sales returns) and inventory valuation (specifically obsolete inventory). Students will also consider what actions, if any, should be taken against those involved in the accounting scandal and how to improve corporate governance and rebuild trust with investors.
As co-founders of home nursing company Buurtzorg, Jos de Blok and Gonnie Kronenberg prized both self-management and organizational learning. Buurtzorg's 10,000 nurses across 950 neighborhood nursing teams in the Netherlands were empowered to manage themselves, both in terms of client care and team management. In its 16 years of existence, that had made Buurtzorg highly successful and had made its model attractive both for other Dutch companies and internationally. Yet because neighborhood teams managed themselves, so much of what they learned remained in the team. While nurses would sometimes try to spread such solutions to peer nursing teams, such as through calls/texts or the compan's internal social network BuurtzorgWeb, there was no holistic, top-down process for reviewing and disseminating best practices across all nursing teams-in part because Buurtzorg had been designed to avoid such hierarchical, top-down management in favor of a more flat, nimble, and minimally bureaucratic organization. They attributed much of the company's success (in terms of high client satisfaction and low employee turnover) to that model. But as the Dutch population aged and the country faced an increasingly dire nursing shortage, nurses would need to work more efficiently than ever, and elevating local, variegated learning to company-wide best practices would be one way to do so. How could Buurtzorg break the tradeoff between prizing self-management and effective sharing of best practices for organizational learning?
An organization's culture can be a significant source of sustainable competitive advantage. For the organization, it can attract job candidates who fit and align employees working in different teams around common goals. For employees, a strong culture can generate pride, satisfaction, and purpose. However, a strong organizational culture can easily decay with a company's growth as new employees join the firm and business units develop cultures of their own. This technical note proposes that the growth a company can sustain while preserving its culture is governed by its ability to attract employees who fit with its purpose and values and to preserve and foster this alignment over time. To achieve this, an effective leader must formally articulate the purpose and values of the company and rely on four management systems that can be collectively thought of as a "North STAR" orienting managers' and employees' attention in the intended direction. This note details these organizational capabilities and management systems and describes the steps that successful companies take in order to preserve a strong culture through periods of growth.
This note explains how several retail and service organizations use a practice described here as "structured empowerment" to balance control and flexibility as they grow. I define structured empowerment as a practice that grants employees both (a) the power to make choices from narrow sets of options on a set of inputs and processes and (b) the responsibility to deliver results according to the company's value proposition. This lets a company control operations-by standardizing the options frontline employees can choose from to drive results-and adapt to diverse markets-because combining choices from the options makes a large number of service offerings and routine sequences possible. This abridged version of the note does not reference the case "OXXO's Turf War Against Extra." It is intended to be used in a classroom setting where "OXXO's Turf War Against Extra" is also being taught, abridged so that it does not give away any relevant information about the case.
Supplement to Knowledge Sharing at REMA 1000 (A). Chief Human Resources Officer Tore Høylie was proud of REMA 1000 (REMA)'s strong employee engagement with Workplace, Facebook's corporate social media platform, however some users complained that the corporate social network had disrupted hierarchical structures, and that the site was overloaded with information. To begin to remedy these problems, Høylie's team modified the group architecture and issued guidance for platform use.
In August 2018, Amazon acquired Whole Foods Market for $13.7 billion. Whole Foods was struggling with high costs and faced growing competition from traditional supermarkets offering more organic products. Prior to the acquisition, Whole Foods began rolling out a new order-to-shelf (OTS) inventory management system that many observers believed had led to shortages. For years, store team leaders at Whole Foods were empowered to make inventory decisions and tailor their stores to meet local needs, but OTS came with strict rules for purchasing and displaying goods which upset many employees. Should Amazon push Whole Foods to improve performance by emphasizing efficiency and standardization? Or should it aim to maintain a sense of empowerment among employees?
This note explains how several retail and service organizations use a practice described here as "structured empowerment" to balance control and flexibility as they grow. I define structured empowerment as a practice that grants employees both (a) the power to make choices from narrow sets of options on a set of inputs and processes and (b) the responsibility to deliver results according to the company's value proposition. This lets a company control operations-by standardizing the options frontline employees can choose from to drive results-and adapt to diverse markets-because combining choices from the options makes a large number of service offerings and routine sequences possible.
A year after Norwegian grocery chain REMA 1000 adopted Workplace, Facebook's corporate social media network, CHRO Tore Hoylie is asked to evaluate its impact on company culture and communication. Almost 90% of the workforce is engaged with the platform, which they use to communicate with colleagues across the decentralized chain of independent outlets. However, there are some concerns that the site is overloaded with information and difficult to navigate. Hoylie must decide whether to try to improve the platform or look for an alternative. If REMA keeps Workplace, how can REMA improve the way employees interact with it?