Jason Fried, Carlos Segura, and Ernest Kim founded Basecamp, formally known as 37Signals, in 1999. The company started as a website redesign firm. By 2003, the amount of expansion of its client list caused the founders to begin looking for collaboration software they could use to manage the projects on which they were working. They looked at existing software, discovering that nothing on the market fit their needs. In contrast to what was available, they needed a program that would allow them to talk to their clients, deliver work, receive feedback, and keep everyone on the same page. So rather than compromising, they built their own project management software strictly for internal use. As they started using it with clients, those people began asking them where they could get it. A lightbulb went off, causing them to decide to offer their software for sale, naming it Basecamp. The Basecamp software product sold well and by 2004 the company shifted its focus from web design to software development. Additional products followed, including Backpack, Campfire, and High-rise. Ruby on Rails, a web application framework, was developed to make Basecamp. It was released later as an open-source development framework and has become quite popular. In February 2014, the company announced it was changing its name from 37Signals to Basecamp, its most popular product. It also announced it was stepping back from its other products—Campfire and High-rise—and would either sell them or continue supporting existing customers but would not take on new customers. Its employees would focus strictly on Basecamp. In a blog post explaining the move, Fried said he and his team always enjoyed being a small company and while they “could hire a bunch more people to do a bunch more things,” that kind of rapid expansion did not align with their company’s culture....

Discussion Questions:

1.Share your general reaction to this case study. How transferable to other organizations do you think Basecamp’s approaches to work design and HRM practices are, or do you think they are unique to Basecamp? Explain your answer.
2.Of the nine novel work design and HRM practices Basecamp uses that appear in the case study, identify the two practices that resonate with you the most and that you believe would be most important to use in an entrepreneurial venture. Be prepared to discuss your selections.
3.In the case, there is an observation that in many companies, long hours, excessive busyness, and a lack of sleep are badges of honor. What do you believe are the causes of this perspective? Do you agree with the Basecamp leaders that that way of working is counterproductive? If you launched a startup, how would you avoid allowing a culture to develop that championed long hours, excessive busyness, and a lack of sleep?
4.According to the case, Basecamp has been a profitable company for an extended period of time. To what degree do you think Basecamp’s work design and HRM practices contribute to its success?