Case Study
Spellman Gardens
Jean and John Spellman are former bank executives living in Seattle, Washing-ton. Although they were employed by different banks, both went insolvent in the 2008 credit crisis, causing the Spellman’s to reconsider their options in hurry. In a courageous move based in part on Jean’s history growing up on a working farm, they decided to start a small business whose mission was to pro- vide all of the seeds and equipment needed for people to start home vegetable gardens. Their thinking at the time was that in a down economy people would once again be attracted to the idea of growing at least some of their own food. Their bet paid off almost immediately. Sales of seeds and garden tools in-creased rapidly, fueled entirely through word of mouth and Internet advertising and sales. It was the classic case of “the right idea at the right time. “But even overnight successes have their challenges. Orders came in so quickly that the couple put all of their friends and family to work filling them but still lagged behind. Their biggest fear was that they would develop a reputation of being slow to fill orders, which they knew would be the kiss of death for today’s consumer. Grudgingly, John realized that they would have to put some more “organization” around their labor of love if it were to succeed. In March 2009, Spellman Gardens had 12 employees, but the Spellman’s expected to need more than 40 by the end of the year. Both Jean and John enjoy the informal, family feeling of their start-up company, but when they contemplate adding dozens more employees, their imaginations quickly go to their bank experiences, complete with reporting levels and defined departments. They have a gut feeling that it wouldn’t work to recreate a bank structure in their small business, but they are less sure about the alternatives. What kind of structure would be most likely to allow their fledgling but successful business to grow?
Assignment
1.What should the Spellman’s do to hold on to the informality they enjoy about their new business? What should they definitely not do? Why?
2.What lessons, if any, should they take from their banking experience in pro- viding a structure for growth for their new company?
3.What would it look like if they adopted a team-based structure for their growing company? What kinds of teams should they form, and how should they be organized and led?
4.What role, if any, should communication technology play in their growth and staffing plans? Should they try to keep all employees based in Seattle, or might there be advantages to building a broader network of employees?