MasterClass: Mellody Hobson Teaches Strategic Decision-Making

Mellody Hobson is the current president and co-CEO of Ariel Investments, America’s first Black-owned mutual fund firm, founded by John Rogers in 1983. In this class, Mellody will teach you how you can apply strategic thinking to any circumstance, no matter what highs or lows you might be facing in your everyday life. Using the case study method of teaching, she will evaluate two pivotal decisions she made as a business leader and will put you in the position to consider what you would do at that moment.

Strategic thinking is an essential skill when navigating adverse circumstances. Mellody shares the guiding principles that she relies on, as well as her toolkit for leading her teams through difficult periods.

Mellody discusses the circumstances that led to a key decision she made at Ariel Investments in 2008 when she was the company’s president. She explains the business and why it became necessary to make a critical decision about the firm’s survival. Then she prompts you to consider what you would do in her shoes.

Mellody breaks down the tough decisions that she made around Ariel’s head count strategy. She will share how she handled internal and external communications around this issue, and what she did to keep morale and confidence up during this challenging time.

Mellody reveals another obstacle that Ariel Investments faced during her tenure. She elaborates on the operational changes proposed to address industry research, portfolio and client diversification, and stock analysis. She will then ask you to consider how you would handle the challenge as a leader.

In this last portion of the lesson, Mellody discusses the various outcomes that improved Ariel Investment’s operations and portfolio management decisions. She concludes the case by providing students with her key takeaways and thoughts regarding the accumulation of knowledge and how it leads to better decision-making outcomes.

Mellody introduces you to the next case study about her time at DreamWorks Animation. She explains the structure of the company, the role of the board, and the trajectory of the entertainment giant during this critical period.

Mellody unpacks the two options that presented themselves at DreamWorks and explains the challenging decision that the board needed to make. Although both options involved selling the company, the outcomes would be far from the same. She prompts you to consider how you would navigate the situation.

Mellody shares what she and the DreamWorks board ultimately decided, and what happened as a result. She highlights the key takeaways and learnings from the case and inspires you to think big when it comes to acquisitions.

Mellody shares her final thoughts with students and what she hopes they have taken away from this class. She will encourage students to use this new information to guide them in their decision-making and hopes this adds value to their career development and journey.