The Human Side of Scaling: Stella & Dot

In early 2018, Jessica Herrin faces four leadership dilemmas with no obviously correct answers.

Herrin built Stella & Dot from a living room trunk show in 2003 into a nearly $300 million direct-sales jewelry company with tens of thousands of independent stylists and 400 corporate employees. She’d deliberately stepped back from day-to-day operations to empower her leaders. Now four situations demand immediate decisions.

A trusted finance manager warns that a recently promoted senior executive tried to obscure a significant budget overrun. When confronted, the executive reveals personal struggles affecting her work. Should Herrin investigate potential integrity issues or offer support to someone in crisis?

A director of engineering is technically brilliant, solving problems that stump more experienced engineers. But he’s a disaster as a manager. His team feels invisible. Two strong performers are looking elsewhere. Can she keep someone who violates core values because his technical contributions are irreplaceable?

A new compensation plan designed to improve stylist retention would cut the top revenue producer’s pay by 26 percent while rewarding others who’d been earning less. She threatens to leave. Should Herrin make an exception and undermine strategic priorities, or lose a top performer who excelled under the old rules?

A high-performing merchandising director requests full-time remote work after relocating 90 minutes away. Her role requires frequent physical presence with product samples. The company’s mission centers on flexibility for women balancing work and family. Can she actually do her job remotely? What precedent would approval set?

The case examines leadership decisions at the intersection of empathy and accountability, performance and values, individual circumstances and organizational needs.

Note: While Jessica Herrin and Stella & Dot are real, the four decision scenarios are fictionalized composites created for educational purposes.