What’s Stifling the Creativity at CoolBurst?

Case Study (CoolBurst)

Team 4

Osama Alshehri, Majed Althawaini, Ahkanyala Jordan, Dominique West

MGMT 6101

September 14, 2016

 EXECUTIVE SUMMARY
CoolBurst is a Miami-based fruit juice company that is experiencing a

standstill in performance due to the absence of creativity. Luisa Reboredo,

the new CEO, must discover the best solution to the problem. To assist Luisa

with her dilemma, we have identified the most important aspects of the

company. These aspects include identifying what is stifling and supporting

creativity at CoolBurst, the changes needed to improve learning and

innovation, and the best ways for Luisa to implement these changes.

Although CoolBurst has been a noteworthy success for a long time; it is

currently undergoing a lot of competition from rival companies regarding

innovation of products and marketing strategies. Even though the strategies

at CoolBurst have worked for the company thus far, it is necessary to revise

them to remain competitive in the market.

In our analysis, we uncovered the factors that have been stifling

innovation and creativity at CoolBurst. These factors include organizational

culture, management style, personnel, and the absence of a reward system.

We discovered that the culture of CoolBurst needs to be transformed to be

more accepting of change, which will benefit the company in the future.

CoolBurst’s management style needs to be revamped to encourage

employees to take risks and think outside the box. The company’s personnel

is a detrimental part of the mix because hiring individuals with drive,

ambition, and expertise are essential to a successful business. Lastly, their

lack of reward system may contribute to the employees’ lack of motivation.

Therefore, we have noted the improvements and changes in these sectors

that are essential for obtaining organizational growth and competitive

advantage. We are confident that if these recommendations are considered

and implemented CoolBurst will successfully enhance its innovation skills

and gain a sustainable competitive advantage that will help them rise above

this stagnant position.

TABLE OF CONTENTS

INTRODUCTION 4
CREATIVE OUTLOOK AT COOLBURST 5
What is Stifling and Supporting Creativity at CoolBurst? 5
structure 5-6
policies 6
practices/procedures 6-7
reward/compensation system 7
culture 7-8
management style 8
FUTURE OF COOLBURST 8
Changes Needed to Improve Learning and Innovation 8
culture 8-9
management 9
personnel 10
reward system 11
Implementation of Proposed Changes 11
culture/management 11-12
personnel 12-13
reward system 13-14
CONCLUSION 15
REFERENCES 16
APPENDIX A FISHBONE DIAGRAM
APPENDIX B GANTT CHART

INTRODUCTION

After many years of success, CoolBurst is beginning to face an

immense amount of competition in the beverage market from a rival

company, Thirst Smashers. CoolBurst has not changed their business model

since it was established in the 1950s. Unfortunately, the company has not

been able to keep up with the consumer’s continuously changing tastes and

preferences. Despite its current situation, CoolBurst must keep in mind that

innovation takes place at an accelerating speed and consumers are in need

of new experiences, services, and products. Therefore, innovation and

change do not wait on the company.

The former marketing director, Sam Jenkins, warned CoolBurst that its

old-fashioned business model would not work in their favor in the long-term.

He tried to explain to CoolBurst that the world continues to change, and

creative ideas are vital for growth and a competitive advantage in the

market. Instead of giving him a chance to show the company his ideas for

the future, he was criticized, and his ideas were overlooked. This rejection of
creative ideas contributes to the standstill presence that CoolBurst is facing

in the industry. CoolBurst made the biggest mistake when their lack of

change caused their most creative employee, Sam Jenkins, to leave the

company and join their competitor.

The new CEO, Luisa Reboredo, is faced with a dilemma. She

understands that change is necessary, but she does not know where to start

without decreasing employee morale. The major challenge is for CoolBurst to

introduce a cultural change that encourages innovation and creativity. After

analyzing the case and supporting articles, our analysis pinpoints the

problems that are stifling and supporting creativity at CoolBurst. Also, the

changes that are necessary to make CoolBurst a learning and innovative

organization, and how Luisa can implement these changes within the

company to make CoolBurst a leader in the beverage industry.

CREATIVE OUTLOOK AT COOLBURST

What is Stifling and Supporting Creativity at CoolBurst?

CoolBurst has become accustomed to its traditional culture, which

ironically does not embrace innovation. The current mindset of the

organization has begun to undermine creativity, which could be an asset to

the organization in the long-run. This mindset is evident through CoolBurst’s

rejection of thinking outside the box. Their decision to refuse the help of

former creative employees and outside firms has negatively affected the

company. In fact, this failure deprived the company of reaching its full

potential, due to the lack of innovation and inability to adjust to the changing
needs of its customer base. CoolBurst has the option to either grow by

enhancing creativity or remain stagnant by not implementing change. With

the competition constantly applying change and innovation, CoolBurst must

learn how to fire up its creative juices. If not, CoolBurst’s key factors

(structure, policies, practices, reward systems, culture, and management

style) may continue to suffer.

structure

CoolBurst’s present business structure is primarily evolving around the

traditional business model. This organizational structure is too rigid to

encourage change and innovation. For a while, CoolBurst has done things

the same way, and most of the employees have worked for the company

since the beginning. Due to their traditional business model, structural

boundaries were defined for the employees causing them to work within

limitations. CoolBurst has settled for a vertical hierarchy among the

departments. This structure means that decisions and information start at

the CEO level and trickles down to the employees. This type of structure

inevitably stifles creativity in the workplace because it does not promote

change, which was evident when Garth LaRoue was the company’s CEO. The

continuation of this tradition has kept CoolBurst at a standstill for the last

four years.

Growth is the key to supporting the creativity at CoolBurst. Therefore,

CoolBurst should focus on enhancing creativity within the organization by

encouraging creativity on all levels. Although the organizational culture is

rigorous, the ability of the new CEO, Luisa, to think outside of the norm is the

start to the development of a new vision for the company. This change can

then open doors for greater opportunity, such as entering into new

segments.

policies

Coolburst has strict policies and standards, which mirrors their strong

traditional culture. CoolBurst has restricted itself to the Southeast only, and

their presence is limited to restaurants and schools. The company only sells

three flavors (apple, grape, and cranberry), and its policies restrict

developing new fruit flavors. Since the policies are strict, they tend to

discourage the employees’ ability to challenge ideas and identify innovative

solutions for growth. This aspect alone is a way to stifle creativity. CoolBurst

lacked creativity, and when Sam Jenkins brought new ideas to the company,

his creativity was discouraged by management. Unfortunately, the company

still works in an old-fashioned way and is not ready to implement change.

practices/procedures

CoolBurst’s organizational practices encourage uniformity, which

hinders the growth of the company. Management often overlooks new ideas

that employees pitch. For instance, Carol Velez and Sam Jenkins introduced

five new flavors of juices to the company, which were dismissed at the time

by the CEO. The reason for this rejection was because CoolBurst had become

accustomed to its everyday practices and procedures, causing them to avoid

change by any means necessary. The marketing director, Sam Jenkins, stated
that CoolBurst must innovate, or their existence would diminish with the

ongoing competition in the industry. CoolBurst’s lack of new practices and

inability to challenge its employees contributed to its stagnant performance.

This act alone caused Jenkins, one of the few creative employees, to leave

the company and take his expertise to their direct competitor. In addition,

CoolBurst has done minimal marketing in the past with in-store

advertisements and has yet to expand to television and other media outlets.

reward/compensation system

CoolBurst has not implemented a reward system for its employees.

Their absence of a reward system is a contributing factor to their static

performance and lack of encouragement for employees to be innovative.

When a company rewards employees for their creativity, they become

motivated to come up with newer and better solutions to the current

problems within the company. This change can be supported by the

popularity of Thirst Smashers products. Even though CoolBurst did not

acknowledge Jenkins’s ideas, they were valued by Thirst Smashers and are

now popular among the customer base in the beverage market. As the new

CEO, Luisa wants to support creativity by helping people understand that

CoolBurst is a place where great work is equitably recognized and generously

rewarded. Therefore, changing the reward system to reflect this mindset

would benefit the company in ways that could potentially help company

surpass its competition.

culture
 CoolBurst’s culture has been unchanged for many years. The

company’s culture is one that discourages change, which is why its motto

should be “No change is good.” CoolBurst continues to abide by its original

culture reflecting no change in its foundation. Moreover, this is exemplified

through the dress code and employee's behavior. Everyone adhered to the

formal dress code, despite the warm climate. The employees treated

everyone with politeness and respect. There were limited arguments,

profanity, and complaints about the company. Also, everyone answered the

phone in an identical and respectful manner. As old-fashioned as that may

sound, this aspect of CoolBurst’s culture was highly valued by its employees.

management

Garth LaRoue, the former CEO of CoolBurst, valued tradition, respect

for authority, and self-discipline. This particular style did not support

employee involvement, which is why the management style was stifling to

creativity at CoolBurst. To support creativity, the decision to appoint Luisa

Reboredo as the new CEO could be a new beginning for CoolBurst. Luisa has

considered restructuring the company and the current mindset of its

employees to think more creatively. Her ability to implement change is an

advantage for the company moving forward.

FUTURE OF COOLBURST

Changes Needed to Improve Learning and Innovation

 Although CoolBurst’s culture revolves around “No change is good,” this

viewpoint is limiting creativity and future innovation within the company.

According to a former employee, Sam Jenkins, CoolBurst’s past success has

relied on the principle of being in the right place at the right time. This style

worked in the past, but moving forward CoolBurst needs to innovate, or the

company will wither away due to enhanced creativity from competitors.

Therefore, the changes that need to make CoolBurst a learning and

innovative organization rely on its culture, management, personnel, and

reward system, in that respective order.

culture
Culture has the highest priority because this is the foundation upon which a company is

built. This aspect of CoolBurst sets the overall tone for the expectations of employees. Therefore,

CoolBurst needs to alter its organizational culture to be more receptive to change. Changing the

organizational culture involves changing many aspects of the company, which are integral

components to its overall success. According to Gregory Berns in Neuroscience Sheds New Light

on Creativity, “Creativity and imagination begin with perception.” CoolBurst needs to change its

focus and realize how ideas are perceived. Ideas are much deeper than what the eyes and ears

interpret [Ber08]. The current organizational culture has allowed employees at CoolBurst to have

a fixed mindset that is resistant to change, which is why a change of culture is needed to improve

innovation.

management
Management is the next priority because the success of any business depends heavily on

the effectiveness of its managers. Managers set the tone for what behaviors are allowed and not

allowed in the company. In CoolBurst’s case, the present management works in a self-disciplined
way and is highly resistant to change. Management is a key component of CoolBurst’s lack of

success, which is why CoolBurst should consider the advice given by Andrew Thompson

regarding management versus leadership. In his interview with Adam Bryant, entitled Speaking

frankly, but don’t go ‘over the net,' Thompson argues that a leadership culture is more important

than a management culture. Even though a leadership culture does not penalize failure, it does

not mean that the organization should reward it. In fact, this supports why CoolBurst should

focus on risk-taking and a bias to action approach. The worst mistake CoolBurst can make is to

fail and not move forward, which is why CoolBurst needs to change its management style.

CoolBurst must keep in mind that a management culture that encourages employees to come up

with new ideas leaps ahead of one that criticizes the ideas of its employees[And11].

personnel
Personnel is the third priority because this aspect is the backbone of an organization.

Employees are major contributors to the success of a company because of their ability to add

value and knowledge. CoolBurst can become a learning and innovative organization by hiring

more quality individuals based on the three components of creativity: expertise, creative-thinking

skills, and intrinsic motivation. As Teresa Amabile states in How to Kill Creativity, managers can

influence all three components of creativity [Ama98]. CoolBurst should implement these

components in its everyday practices.

CoolBurst lacks innovation and motivation, which are essential to the progress and

success of the company. According to Amabile, “The principle of creativity is that people will be

most creative when they feel motivated primarily by the interest, satisfaction, and challenge of

the work itself”[Ama98]. With that being said, CoolBurst should focus on its consumer’s

constantly changing tastes and preferences, and intrinsic motivation with employees, since this is
the way to yield immediate results [Ama98]. CoolBurst’s ability to understand the employees

and the consumers start learning and innovation, which in return enhances the organization’s

chances of success.

Employing people who utilize intrinsic motivation and possess creative thinking skills

will help support CoolBurst’s transition into creativity. Past studies show that “Corporations will

improve their successes in addressing problems and opportunities if they recruit creative

individuals who have the necessary foundation skills and establish a culture in which they can

flourish” [Pin05]. CoolBurst can support creativity by employing those that meet this criterion.

reward system
A reward system is our final priority because a performance linked reward system can

drive better performance, increase creativity, and ultimately improve productivity. CoolBurst is

facing a lot of competition from similar brands in the market, and there is a need to come up with

new ideas to stay afloat. CoolBurst should create a reward system for employees who develop

creative solutions for the organization. In fact, Thompson’s point in Speaking frankly, but don’t

go ‘over the net,' suggests that companies should create reward systems for innovation that are

both obvious and visible[And11]. Ultimately, this change should be implemented because having

a reward system boosts the morale of employees and encourages them to create new ideas.

Implementation of Proposed Changes

Luisa Reboredo is faced with the task of transforming the company

from restrictive to innovative. A way to successfully achieve this is by

implementing changes within the culture, management, personnel, and

reward system of the company. This step will transform the organization in
ways that move them towards becoming more innovative, productive, and

successful in the long run.

culture/management style
CoolBurst needs to alter its organizational culture and management to be more receptive

to change. This change starts with implementing weekly staff meetings and an anonymous

hotline. Currently, the employees feel that CoolBurst will continue to abide by its old-fashioned

ways and continue to allow creative people to intimidate the company. Velez stated, “We’re not a

creative company. We’re just a little juice company that knows how to do one thing well- make

plain old juice and deliver to plain old schools and restaurants. We’ve got one creative person,

and he makes everyone nervous”[Wet97]. This mindset of the employees is the sole reason for

the implementation of weekly staff meetings. The weekly staff meetings will allow employees to

get together and share their ideas and concerns with management. These meeting will give them

the opportunity to express their creative ideas freely, and it will make a difference within the

company. According to Sternberg in Teach creativity, not memorization, a way to encourage

creativity is by encouraging idea generation [Ste10]. Since management may not always directly

deal with consumers, the meetings will give employees the opportunity to inform management of

the consumer’s constant change in taste and preferences. The weekly meeting approach is a time

where creative thinkers come together, and their ideas are not criticized, rather built upon to help

the company move forward in the right direction.

A second recommendation is an anonymous hotline. The implementation of an

anonymous hotline will allow employees to express their concerns without fear of defying the

culture of the company. This hotline lets the employee enter a claim into the company by

following four steps. The employee calls about a problem or concern; the issue is put to higher
level management, investigated, and a solution is later reached. The employee has the option to

check on the status of his or her complaint through the claim number. Luisa can learn a lot from

her employees and encourage creativity by implementing these two approaches.

personnel
CoolBurst needs to invest into the development of its employees. This development can

be done through the implementation of creativity workshops and a change in scenery by viewing

other culture’s tactics. According to Sternberg, providing an environment that fosters creativity is

important to the success of the business [Ste10]. CoolBurst should implement a monthly

creativity workshop, entitled “A Burst of Creativity,” where employees are challenged to think

outside of the box. In this workshop, the employees will engage in hands-on activities that foster

creativity. For instance, the employees will have a session where a broad idea is given, and

everyone must think quickly on as many ideas to enhance this broad topic. This type of approach

encourages the free flow of ideas. In addition, CoolBurst can also allow an off-site assignment

where employees are given an opportunity to explore their surroundings for a day or study

abroad for a short period. This learning style brings new insight to the company. Although time

out of the office may appear to be wasted, if it is spent thinking about the company and the

product, it can yield great results. In this situation, creativity is put into practice, and the

employees learn by doing.

reward system
Employees are more likely to come up with and share ideas if their efforts are recognized

and appreciated. Although CoolBurst currently lacks a reward system, Luisa should come up

with an effective reward system that encourages CoolBurst’s employees to develop new ideas

and share them. This reward system can consist of recognition and fringe benefits.
 Recognition can come in different forms. Therefore, Luisa should implement a reward

program where employees who contribute the best creative ideas are recognized for their efforts.

This recognition can be shown in three methods: a simple e-mail blast, an appreciation

ceremony, or an employee of the quarter. As stated in Managing for Creativity, employees can be

rewarded with more than monetary gains [Flo05]. An email blast can be sent out weekly to

recognize the company’s Rising Star, which is the employee who has effectively tapped into their

inner creative side in efforts to help CoolBurst overcome its current stagnant performance. This

recognition is not a time to discourage other employees, but rather encourage them to think

outside of the box.

In addition, an appreciation ceremony can be done during lunch time for the employees.

This ceremony is the moment Luisa takes the time to acknowledge everyone for their

contributions to CoolBurst and thank them for thinking greater than just the ordinary CoolBurst

way. This recognition approach can be made on a monthly basis. Another approach is the

employee of the quarter award. This award, which is a plaque, is given to the employee who has

made significant contributions to CoolBurst during the quarter. In addition to an award, this

employee will have their photograph posted in the building along with other employees of the

quarter.

On another note, fridge benefits can include bonuses, educational assistance, leaves, and

other perks that an employee can enjoy alone or with their family. A bonus can be given at the

end of each month/quarter/year, depending on Luisa. This bonus amount will be determined by

the success of the business during the specific time frame. This bonus is granted to the individual

who has contributed significant and successful ideas to the company regarding becoming the

number one juice company. In addition, educational assistance can be given to the employees to
attend classes to enhance their creative minds. These classes are to help enhance their

professional development and expand their creative thoughts. Lastly, paid leaves are an option to

enhance creativity through a reward system. The employees who have surpassed the bar can be

given paid time off, ranging from three to five days. The implementation of these reward systems

will spark employee’s interests and get them actively involved in decision making. As a result,

the rewards program will help transition CoolBurst’s traditional environment to one that is

motivating and boost creativity.

CONCLUSION

CoolBurst’s stagnant performance in the industry has forced the

company to reevaluate its view on creativity. The company’s stagnant

performance leaves Luisa Reboredo asking the question, why is CoolBurst

not growing anymore? The answer is simple, the lack of presence of

creativity. The company’s culture is one that is stuck on past ideals, and this

makes innovation difficult. Therefore, CoolBurst needs to make the

appropriate changes to transition from an old-fashioned company who is

afraid of change, to a learning and innovative organization. As discussed,

CoolBurst must align its current structure, policies, practices, reward system,

culture, and management style with the mindset that creativity is the key to

long-term success in the market.

CoolBurst’s traditional structure, unchanging culture, restricted policies

and practices, and non-existent reward system are all characteristics that
have contributed to its stagnant performance. Although CoolBurst’s culture

revolves around “No change is good,” this viewpoint is limiting creativity and

future innovation within the company. This style may have worked in the

past, but moving forward CoolBurst needs to innovate. Therefore, the

changes that need to make CoolBurst a learning and innovative organization

rely on its culture, management, personnel, and reward system, in that

respective order.

Luisa needs to alter the organizational culture and management to be more receptive to

change by implementing weekly staff meetings and an anonymous hotline. Also, to boost morale

with personnel, Luisa should implement creativity workshops and a change in scenery by

viewing other culture’s tactics. In regards to a reward system, recognition can be shown in three

methods: a simple e-mail blast, an appreciation ceremony, or an employee of the quarter. These

are all ways Luisa can overcome the current challenge CoolBurst is facing in the market.

REFERENCES

Amabile, T. (1998). How to Kill Creativity. Harvard Business Review, 77-87.

Berns, G. (2008). Neuroscience Sheds New Light on Creativity. Fast Company - Rewiring the

Creative Mind, 51-56.

Florida, R., & Goodnight, J. (2005). Managing for Creativity. Harvard Business Review.

Pinard, M. C., & Allio, R. J. (2005). Innovations in the classroom: Improving the creativity of

MBA students. Strategy and Leadership, 49-51.

Sternberg, R. (2010). Teach creativity, not memorization. Gwenda Kaczor for the Chronicle.

Thompson, A. (2011, September 17). Speak frankly, but don't go 'over the net.' (A. Bryant,

Interviewer)
Wetlaufer, S. (1997). What's Stifling the Creativity at CoolBurst? Harvard Business Review, 36-

38, 40, 42, 46,48-50.