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Case Study - MorningStar

Morning Star is a $700 million agribusiness company that processes tomatoes without traditional managers. It has over 400 employees organized across 23 business units. The company vision is for all team members to be self-managing, coordinating activities without directives. There is no hierarchy, promotions, or centralized decision making - employees negotiate responsibilities through agreements with peers. Compensation and major decisions are made by experienced professionals to resolve conflicts. The culture fosters open communication and idea sharing across the organization to serve customers.

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Saptaparna Ray
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2K views8 pages

Case Study - MorningStar

Morning Star is a $700 million agribusiness company that processes tomatoes without traditional managers. It has over 400 employees organized across 23 business units. The company vision is for all team members to be self-managing, coordinating activities without directives. There is no hierarchy, promotions, or centralized decision making - employees negotiate responsibilities through agreements with peers. Compensation and major decisions are made by experienced professionals to resolve conflicts. The culture fosters open communication and idea sharing across the organization to serve customers.

Uploaded by

Saptaparna Ray
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

HBR Case Study on Morning Star:

Running a industry leading organization without


managers

Introduction
Company Profile

California based agribusiness and food processing company which is a global leader in the
tomato processing market

Established in the year in 1970 by Chris Rufer, as tomato trucking operations, who continues
to be the CEO till date

Processes 25% of the California processing tomato production, and supplies approximately
40% of the U.S. industrial tomato paste and diced tomato markets

Company Dimensions
Size
400 full time employees

23 business units

Units
3 large plants for processing
Canned tomatoes for super markets
Trucking company
Business for handling harvesting

Revenue
$700 million a year in
revenue
They receive double digit
growth rate compared to
the 1% of their competitors

Company Vision
To create a company in which all team members will be self-managing, initiating communications and the
coordination of their activities with fellow colleagues, customers, suppliers, and fellow industry participants,
absent directives from others

Organization Design

rganization Structure

Specialized tasks
Strict Hierarchy, many
rules
Vertical communication &
reporting systems
Few teams, task forces or
integrators
Centralized decision
making

No boss , no hierarchy, no promotions


Employees Negotiate responsibilities with
peers
through (CLOU: Colleague letter of
understanding)
Everyone can spend companys money
Individuals responsibility to acquire tools
needed
Compensation decisions are peer based

Organization Culture It is all about self


management
There are no corner offices in our Chicago headquarters. In fact, there are no
offices at all

At Morningstar, the open environment reflects belief that anyone at any level can voice
their ideas and take part in making them happen

For all bigger decisions , a jury of experienced professional is set to make final
decisions and resolve differences arising from conflicts

Across Morningstars groups and global offices, we rely on every individual to


contribute their ideas and perspectives to help us continually improve how we serve
investors

No one has the right to kill ideas and staff seldom take big decisions all by themselves

Key points of learnings and


implications
Moving up is about competency and
reputation, not the office you hold.
Freedom and expression in work
leads employee to think about the
business holistically and innovation.
information silos do not help.
People will be loyal to the company
under self management.

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