Analyzing Stone Finch's Organizational Challenges: Culture, Strategy, Talent Misalignment, Study Guides, Projects, Research of Organizational Development

Download Analyzing Stone Finch's Organizational Challenges: Culture, Strategy, Talent Misalignment and more Study Guides, Projects, Research Organizational Development in PDF only on Docsity! In this memo, we analyze the following aspects of "Stone Finch, Inc.: Young Division, Old Division" (HBS): the root causes of the current challenges that Jim Billings and Stone Finch are facing with regards to turnover and morale; the alignment of Stone Finch’s organizational strategy and culture, particularly with regard to building a culture of experiment [an experimental culture]; and what the next step is for Stone Finch. Based on our analysis, we conclude that Stone Finch’s current organizational structure, culture, and lack of effective talent management are the root causes of its challenges. Many managers fail to realize that structure influences behavior.1 Stone Finch currently has three different organizational forms: functional (Water Products), self-contained unit (Solutions), and matrix (Subsidiaries). We believe that these three business units are not clearly defined within the organization and are not effectively integrated with each other. An inconsistency in Stone Finch’s culture creates a further issue with its organizational structure. The company has two cultures – one is a hierarchy (Water Products) and one is an adhocracy (Solutions & Subsidiaries) – which distinctively promote the different values of increased formalization (internal focus) vs. risk taking (external directed).2 The contradiction between these two cultures creates more tension [creates tension] between the young and old divisions [younger division of falcons and older division of domestic fowl]. Finally, a lack of effective talent management intensifies employees’ dissatisfaction at work. There is a clear gap between the effectiveness of Stone Finch’s talent management and the division of the water products, and the solutions that it offers [ [the solutions offered by the Water Products division]. The company’s lack of investment in the Water Products division is so oblivious [obvious] that employees feel used but not valued. The CEO’s vision of innovation and demand for ‘falcons’ demotivates Water Products employees. Due to the lack of talent management, they don’t see a bright future ahead of them, as they do for employees in the Subsidiaries division. There is no effective talent management to help employees in the Water Products division to become falcons. This unfairness has created a huge issue with employee morale. The disconnect with the ASA Framework [The disconnect between ______ and the ASA framework] suggests that Stone Finch’s employees no longer share the company’s values and goals.3 We conclude that the misalignment of Stone Finch’s organizational structure, contradictions within this culture, and a lack of effective talent management are the roots causes of the current challenges that Stone Finch and its CEO, Jim Billings, are facing with regards to turnover and morale. Stone Finch’s current organizational strategy and culture are severely misaligned, particularly with regard to building an experimental culture. As mentioned above, there is a contradiction between Stone Finch’s two co-existing cultures (hierarchy and adhocracy). This is one of the reasons for the culture-organizational strategy misalignment. Stone Finch CEO’s clear vision of innovation and demand for ‘falcons’ creates further misalignment between the young (falcons) and old (domestic fowl) divisions 4. Stone Finch shows no interest in investing in the Water Products division, given its belief that falcons are born rather than trained. In addition, company appears to value [overvalue the falcon who had [has] a successful track record in the subsidiaries division, Beth Suarez. Suarez excelled with EnzaClean and now she is leading 4,000 instead of 100 people at the beginning [Suarez excelled with EnzaClean, leading 100 people at the beginning of her career and 4000 later on OR Suarez excelled with Enzaclean, where she led 100 people, and is now leading 4,000 people at Stone Finch OR Suarez excelled with Enzaclean, led 100 people at the start of her career with Stone Finch, and is now leading 4,000 people at Stone Finch].4 Does the