Makaia: the return of the co-founder

Learning outcomes The learning outcomes are as follows: to understand the challenges and issues associated with management succession, with a thorough consideration of the interplay among governance structure, organizational inertia and management styles of the individuals involved in the leadership transition; to evaluate how well-established corporate governance structures are indispensable for managing periods of change within organizations; to evaluate the organizational elements currently being affected by the organizational change Makaia is undergoing, using the McKinsey 7S model; and to formulate and propose the tools necessary to ensure that the transition from the founder to the successor occurs in an organized and transparent manner for all members of the organization. Case overview/synopsis In June 2006, Catalina Escobar, alongside co-founders Maria Claudia Camacho and Camilo Mondragón, established Corporación Makaia, a Colombian NGO (Miskito for “to make” or “to build”) aimed at fostering human development through international cooperation and technology. For a decade, Catalina led the organization as Executive Director, building a culture rooted in social intuition and close-knit personal relationships. By 2015, following a strategic renewal, Catalina expressed her desire to step away from day-to-day operations to focus on high-level strategy. She felt the organization needed a different type of leader to achieve “institutional maturity.” This led to a rigorous selection process, and in 2017, Carlos González was appointed as her successor. At that time, Makaia faced a paradox: increasing revenues but declining surpluses and EBITDA, signaling that a shift toward a more process-driven, self-sustainable business model was required. What began as a transition phase in 2017 evolved into a seven-year journey of transformation. Under Carlos’s leadership, Makaia achieved undeniable milestones: by March 2024, the organization had expanded its footprint to different countries, impacting over 100,000 individuals and 14,000 organizations, with financial figures showing a solid upward trajectory. However, by early 2024, the “Catalina-dependency” remained an unresolved challenge. Despite the financial success, a deep cultural rift had emerged between Carlos’s structured, process-oriented management and the team’s longing for the foundational leadership style. As Catalina reviews the 2023 Management Report, she faces a critical dilemma: the very strategies that saved Makaia financially appear to be eroding the organizational climate she spent a decade forging. The case explores the complexities of long-term leadership succession, the tension between operational efficiency and social culture and the challenge of maintaining an organization’s “soul” during a scale-up process. Complexity academic level This case is taught in specific senior management programs focused on preparing for management succession in organizations of different types. This is not only applicable to the third sector (NGOs) but also in general to all types of organizations, including family businesses. This case can be addressed as part of the MBA in the General Management course on the subject of management succession and in Executive Education programs to understand methods of preparing for succession in an organization. Subject code CSS 7: Management Science.