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Overview

Groundswell Coffee Co. faces a dilemma simmering at the intersection of innovation and integrity: how to handle the increasingly common phenomenon of employee-led side ventures when those ventures edge dangerously close to conflict of interest. The case revolves around a former general manager whose private consultancy blurred lines with her corporate responsibilities. The business must now determine how to evolve its leadership practices, protect its operational integrity, and maintain a culture that values entrepreneurial drive without undermining organizational loyalty.

The analysis calls for more than a legal review — it demands a layered assessment of culture, brand risk, and talent strategy. This decision touches every stakeholder, from procurement officers to the newest barista, and it will ripple across recruiting, retention, and reputation. The company must balance optics and ethics with agility and adaptability — all without sacrificing the very values that fueled its rise.

Backstory

Groundswell Coffee Co. began as a boutique concept, rooted in community, sustainability, and second chances. With a focus on ethically sourced beans and inclusive hiring practices, it earned fast loyalty and expanded methodically across a dense urban corridor. Known for its refined yet unpretentious atmosphere, Groundswell occupies a rare niche between third-wave purist and scalable chain — its DNA stitched from local values and millennial optimism.

Enter Rachel Lyman, a key figure in that trajectory. She joined during a pivotal expansion push and quickly distinguished herself as a turnaround artist, rescuing underperforming stores and optimizing labor models without sacrificing experience quality. Her reputation became lore within the company: a fixer with vision, a mentor with moxie. She operated with unusual autonomy — a reflection of her results — but in hindsight, perhaps also a blind spot.

Unbeknownst to most, Lyman began buildi...