The Tale Of The Lynx (A And B) Harvard Case Solution & Analysis

Introduction

            The case “The Tale of the Lynx (A and B)” reveals the information of a company that was founded by two partners which were James Milmo and Doug Curtis. The business model for the company was to launch an untapped and unaltered method of online real estate listings. The business model introduced by Lynx was which was in the development phase, was actually launched by two of the large real estate companies in the market who introduced the method of business similar to what Curtis and Malmo decided.

            In such a situation, the two partners decided to focus on developing advertising support screen savers and also made handheld wireless devices such as the cell phones and the Palm Pilots Since both Milmo and Pascal were not technically skilled; therefore, Milmo contacted his acquaintances and offered Javier Pascal an opportunity at Lynx. Initially, Pascal was used as a viability research capacity, however soon after that he was actually himself willing to commit complete   attention to the company Lynx.

Issues

What were the most critical choices faced by James Milmo early in the founding of Lynx? Do you agree with his decisions?

The case “The Tale of the Lynx (A and B)” basically discusses the issues within the organization where equity stake was one of the most important and the mot integral issue at the firm. As the case states, Milmo wanted Curtis to work with the organization for the coming period of two years before he can actually be vested completely. On the other hand, Milmo decided that he himself will immediately vest.

Along with this, Milmo considered the fact that the third partner who was Pascal as a critical part of the company Lynx and in fact decided and argued that each of the three founders shall be given the equal partnership in Lynx. He even wanted that each of the three partners shall be given an equal right in the company where the total equity shall be divided in three.

However, it is necessary to understand that Pascal can only participate within the firm Lynx as its co-founder only with the consent of the third partner that was Curtis. Finally, it was decided that both Curtis and Milmo shall receive a total equity and ownership of 37.5 %. Whereas, Pascal shall be receiving a total of 25 % shares in the equity of the firm.

With the current situation of the company, it can be considered that Milmo made a reasonable and a consistent decision. As per his decision the equity was decided to be shared amongst the three partners in a manner where Curtis and Milmo received 37.5 % stake in the company, whereas Pascal was decided to be given a partnership of 25 %.

The decision taken by Milmo to vest himself immediately from the company was not the right time to do so. The reason although looks quite reasonable, but instead he should have looked to not leave the company Lynx before a two year vesting period.

The assertion or the decision to vest him immediately can only make the other two partners and the potential partners feel hesitant in making investment in the company Lynx. Along with this, to decide the share of Pascal at Lynx, Milmo should have initially consulted with the other partner Curtis before announcing and deciding the stake of Pascal at the company.

The decision taken by Milmo was spontaneous and risky. If the decision would have been with consultation with Curtis, the decision would have been owned by other partner also, who has similar shares and equity in the company as Milmo. The overall situation actually ended up in creating the element of mistrust and dissatisfaction between the Pascal and Curtis.

Situation Analysis

Has the founding team done a good job of structuring itself and building the Lynx organization?

Lynx was founded by three members, Milmo was announced as the President and the chairman of the company, whereas, Curtis was made the Chief Operation Officer (CEO), whereas Pascal was declared as the Chief Technology Officer (CTO). The company was established with the idea of triumvirate structure.  This meant that all the decisions made at Lynx were with mutual constant of all the three partners.

The Tale Of The Lynx (A And B) Case Solution

If two of them agreed upon a particular decision, the third one had to actually agree upon the decided result. This was the basic organizational structure at Lynx. As the case states, Pascal and Milmo were quite efficient for the position they actually held at Lynx. However, the position held by Curtis was questionable. The prior experience of Curtis was of sales representative at VC backed companies therefore he was not a suitable person to be made the CEO. ............................

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