Each year in March, 800 delegates from 60 countries convene for the Skoll World Forum, a gathering of the world's leading social entrepreneurs organized by the Skoll Foundation. Prominent figures from the social, academic, finance, corporate and policy sectors engage for three days of debates, discussions and work sessions focused on scaling solutions to some of the world's most pressing issues. This article summarizes one of the panels, "Leadership for Change," which featured five prominent business leaders/social entrepreneurs: Hasbro's Chairman Alan Hassenfeld; Cisco's Senoir VP, Corporate Affairs, Tae Yoo; Amamex International's Founder and CEO, Fadi Ghandour; Pitney Bowes' past Executive Chairman Michael Critelli; and Intel's General Manager, Sustainability, William Swope. Each discusses their organization's approach to CSR, sample initiatives and leadership lessons.
Authors :: Alan Hassenfeld, Tae Yoo, Fadi Ghandour, Michael J. Critelli
Swot Analysis of "Leadership for Change" written by Alan Hassenfeld, Tae Yoo, Fadi Ghandour, Michael J. Critelli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Skoll Prominent facing as an external strategic factors. Some of the topics covered in Leadership for Change case study are - Strategic Management Strategies, Organizational culture, Social responsibility and Global Business.
Some of the macro environment factors that can be used to understand the Leadership for Change casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, technology disruption, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%,
wage bills are increasing, increasing commodity prices, etc
Introduction to SWOT Analysis of Leadership for Change
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Leadership for Change case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Skoll Prominent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Skoll Prominent operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Leadership for Change can be done for the following purposes –
1. Strategic planning using facts provided in Leadership for Change case study
2. Improving business portfolio management of Skoll Prominent
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Skoll Prominent
Strengths Leadership for Change | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Skoll Prominent in Leadership for Change Harvard Business Review case study are -
Effective Research and Development (R&D)
– Skoll Prominent has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Leadership for Change - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Skoll Prominent are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Low bargaining power of suppliers
– Suppliers of Skoll Prominent in the sector have low bargaining power. Leadership for Change has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Skoll Prominent to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Skoll Prominent digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Skoll Prominent has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Skoll Prominent in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Skoll Prominent is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Global Business industry
– Leadership for Change firm has clearly differentiated products in the market place. This has enabled Skoll Prominent to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Skoll Prominent to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Leadership for Change Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High brand equity
– Skoll Prominent has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Skoll Prominent to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Skoll Prominent has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Leadership for Change Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Skoll Prominent has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Highly skilled collaborators
– Skoll Prominent has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Leadership for Change HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Leadership for Change | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Leadership for Change are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Skoll Prominent supply chain. Even after few cautionary changes mentioned in the HBR case study - Leadership for Change, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Skoll Prominent vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Skoll Prominent is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Leadership for Change can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Skoll Prominent has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to strategic competitive environment developments
– As Leadership for Change HBR case study mentions - Skoll Prominent takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Lack of clear differentiation of Skoll Prominent products
– To increase the profitability and margins on the products, Skoll Prominent needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Skoll Prominent has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Leadership for Change, in the dynamic environment Skoll Prominent has struggled to respond to the nimble upstart competition. Skoll Prominent has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Skoll Prominent is dominated by functional specialists. It is not different from other players in the Global Business segment. Skoll Prominent needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Skoll Prominent to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Leadership for Change, it seems that the employees of Skoll Prominent don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Skoll Prominent has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High cash cycle compare to competitors
Skoll Prominent has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities Leadership for Change | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Leadership for Change are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Skoll Prominent can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Leadership for Change, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Skoll Prominent has opened avenues for new revenue streams for the organization in the industry. This can help Skoll Prominent to build a more holistic ecosystem as suggested in the Leadership for Change case study. Skoll Prominent can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Skoll Prominent can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Skoll Prominent in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Skoll Prominent can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Skoll Prominent can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Skoll Prominent can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Skoll Prominent can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Leadership for Change suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Skoll Prominent can use these opportunities to build new business models that can help the communities that Skoll Prominent operates in. Secondly it can use opportunities from government spending in Global Business sector.
Building a culture of innovation
– managers at Skoll Prominent can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Skoll Prominent in the consumer business. Now Skoll Prominent can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Skoll Prominent has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Skoll Prominent can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Leadership for Change External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Leadership for Change are -
High dependence on third party suppliers
– Skoll Prominent high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Stagnating economy with rate increase
– Skoll Prominent can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Skoll Prominent with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Skoll Prominent is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Leadership for Change, Skoll Prominent may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Skoll Prominent can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Leadership for Change .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Skoll Prominent.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Skoll Prominent in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Skoll Prominent business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Skoll Prominent demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Skoll Prominent in the Global Business sector and impact the bottomline of the organization.
Environmental challenges
– Skoll Prominent needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Skoll Prominent can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Weighted SWOT Analysis of Leadership for Change Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Leadership for Change needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Leadership for Change is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Leadership for Change is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Leadership for Change is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Skoll Prominent needs to make to build a sustainable competitive advantage.