Social Innovation At salesforce Com Case Solution

1. Background

Sales force.com is a San Francisco based enterprise cloud computing company founded by Benioff in 1999. As of 2011 it had 97,700 customers, with a 4000 sales force and earned revenue of $1.7 billion. Since its inception, it has inculcated its employees with a social mission, and as a result came up with 1-1-1 model. This model means employees will donate 1% of their work time for philanthropic works; 1% of their equity takes the form of grants and 1% of the product will be donated to nonprofit organizations. With this current model of equity, it has become difficult for the organization to operate. It was estimated that it can operate only for 5 years. In order to counter this issue, DiBianca presented three strategies, where, she was given an option of reselling the sales force CRM licenses to the nonprofit organization. In order to pursue idea, new 501© (4) entity was developed. With its inception, organization had to carefully analyze the legal problem, it has to hire more people to run entity, deciding upon the compensation packages and inculcating new employees with philanthropic attitude. As time passes, this organization is presented with more challenges and one will have to find a way to counter those challenges. 

 2. Problem

There are many challenges that DiBianca is facing as the leader of the organization. The first of these problems related to culture, its keeping up the socialists and enterprise persons together so that 1-1-1 model remains intact. Second problem relates to grants, which previously were acquired from equity. With setting up of the new entity, how will the sales shape the grants? Moreover, DiBianca needs to consider the total amount of the grants.

Addition to that, the company is growing rapidly, and DiBianca is faced with the challenges to utilize its limited resources and at the same time, expand them. As a result of the limited resources, foundation was considering other ways to provide services to clients. The alternatives include consideration of leveraging over external resources and self improvement. Last, but not the least, the organization needs to figure out the compensation scheme for its employees to keep them motivated. If one looks at these problems, one needs to find and link them for finding an appropriate solution, that’s also what DiBianca wants.

3. Organization Action

Salesforce.com was extremely proactive in countering to the much needed turnaround as they came up with the idea of the new entity. This idea is worth pursuing, but in trying to do so, it is facing many problems. In order to face these problems, organization will have to be very careful, as it will be a decider for them.

First problem relates to difficulty in making socialists and enterprisers work together. This can be achieved through the introduction of clan culture, open door policy and employees empowerment. Leader should lead by examples and endorses the 1-1-1 model. The enterprisers need should be worked upon more to build a socialist attitude as the socialist are already part of being volunteers and donators. This way the organizational culture can bring on more flexibility and understanding. As per the problem of grants, the selling of the products and offerings will bring in more revenue.