Value-Based Leadership and Organizational Change: A Case Study of Hanna Andersson
Overview
This paper examines how Hanna Andersson, a children's clothing company, applied value-based leadership (VBL) to address organizational challenges and drive strategic change. The analysis demonstrates how VBL was implemented through planning, organizing, leading, and controlling functions, and how organizational culture and leadership consistency facilitated business transformation in response to internal and external competitive pressures.
What this case study covers
- Introduction to value-based leadership and ethical leadership challenges in the 21st century
- Application of VBL at Hanna Andersson through POLC framework and leadership transitions
- Relationship between organizational values, culture, and employee retention
- Internal and external challenges requiring organizational change and strategic adaptation
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Hanna Andersson Business
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Hanna Andersson Business
At the beginning of the 21st Century, leadership faced challenges due to failures experienced in ethical leadership. Before the 21st-century, leaders were focused on personal achievement and satisfaction instead of their responsibilities. This led to numeorus challenges in many organizations. Value-based leadership (VBL) is an aspect that can be employed in addressing leadership challenges and developments. According to Bano, Ishrat, and Mishra (2020, p.2834), VBL develops over time and thus can be adopted in leadership. Bano et al. (2020) found that VBL is progressive and develops as a bi-product of time and traditions. Hanna Andersson has applied VBL in the organization's choices through coordinated planning, organizing, leading, and controlling (POLC). VBL is applied in planning through Iosca's leadership when stores all over the United States (US) were opened and the establishment of online commerce.
Opening the stores and initiating online commerce involved thinking to achieve increased while maintaining the traditions of the business dealing in European clothe-ware for children. After Stone's take over as CEO, VBL was organized by Stone breaking down work initiatives to avoid employees being overwhelmed. Through VBL, leadership at Andersson is transforming with new CEOs integrating new values into the organization based on leaders' fundamental values. Iosca and Adam Stone, for example, introduced different fundamental values at Hanna Andersson meant for the success of the business.