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Chipotle Organizational Design

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by

Danee Chavez

on 2 December 2013

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Transcript of Chipotle Organizational Design

Ahmed Aldhaheri, Emmanual Cain,
Danee Chavez,
Jeannie Nguyen


Food With Integrity
Culture
Founded
Initial goal
Current environment
Hierarchical Structure
Chipotle's Design
Centralized
Mechanistic
Standardized
Institutionalized
Resource dependent
Suppliers
Overview
History of Chipotle
general mission
Current design
problems
Redesign/solutions
problems associated with change
Naturally Raised Meat Products
Food With Integrity initiative
Chipotle achieved this goal in 2010
Beef Shortage
Supplier Relationship Management
Since sourcing is so important, Chipotle has a strong focus on SRM.
Chipotle is very strict with their suppliers and demands a lot from them in the following ways:
Examines producer's sustainability and long-term profitability at the first, second, and third-tier levels
Demand transparency
Try to develop efficient relationships
Summary of Problems
1. Managing relationships with suppliers
2. Board of Directors have too much control
3. Too centralized decision making
4. Not as responsive to customer’s needs based on geographic differences
Redesign
Summary of Recommendations
Final Thoughts
Lewin’s 3 steps for change model
Changes Made:
1. Create two liason roles to add 2 levels to hierarchical structure.
Reward: outside consultants will survey the suppliers quarterly in order to receive feedback about the liason role integration. By receiving this feedback evaluation can be made and when improvement across these areas are made, set bonuses will be given to the liason roles. By fueling the bonuses from the perspective of the suppliers this will in turn motivate the liason role to positively maintain the supplier relationship.
History of Chipotle
Problems with Design
extreme resource dependency
relationships with suppliers
Local
Unpredictable
Control

1. Create two liason roles to add 2 levels to hierarchical structure
2. Become less centralized
3. Become more organic
4. Merger with suppliers
Chipotle share same value with customers
Institutionalized role orientation
Promote from within approach
Chipotle is a model-esque organization internally with minor potential for conflict
Check-ins regularly in order to maintain culture and policies
Full transcript