Scarborough YMCA Getting Back on Track Case Solution

2. Statement of the Problem

The Scarborough YMCA has been running into operational problems for the last few years. The workforce, including the sales staff and volunteers, are demotivated and not serving the members well. The facility appears outdated due to a lack of sufficient funds to take care of the infrastructure. Moreover, the competition for Scarborough YMCA has been rising with the increase in health and fitness centers, affecting the association’s sales revenue. The facility has not been able to attract new members in the form of families who can contribute tremendously to the sales revenues. Another area of concern is the conventional and undifferentiated reporting lines in the company. This causes a lack of clear authority and responsibility for performing tasks in the organization.

3. Causes of the Problem

The problems identified above are linked to the management style at Scarborough YMCA which has been sluggish and lacked dynamism. Few changes in the structure have been made since the inception of the association at Scarborough. Moreover, Scarborough has been known to be a geographical area consisting of low income, low age, and low educational background citizens. Due to such a culture surrounding the area, the employees at Scarborough YMCA have not been interested in improving the quality of services to the members.

It must also be noted that the Scarborough YMCA is heavily dependent on outside funding to run this not-for-profit entity. With the rise of competing institutions, the Scarborough YMCA has not attracted much external funding and donations. Moreover, the various general managers appointed at Scarborough have not been able to deliver on all of their plans. Hence, there has been rapid change of leadership at the Scarborough YMCA. With such changes in senior management, there have been inconsistent policies in developing the Scarborough YMCA as a truly dynamic enterprise. This turned out to be a major challenge for MacDonald as she had to get all the employees on board. The problem also lies in the lack of a well-trained workforce who could handle guest relations and encourage new memberships.

Furthermore, the members representing the youth form a major chunk of the members. This leaves an impression of Scarborough YMCA as a recreational facility only for teenagers. This discourages families and adults from using the various facilities due to the casual environment. However, the high sales for Scarborough YMCA would strictly depend upon acquiring family memberships that would earn greater margins. Due to the lack of updated facilities at the site, the people in a closed community are now moving towards competitors. Such facilities include improved recreation, adult education, and fitness and training programs for the members who are part of the Scarborough community. The image of the Scarborough YMCA has developed that it is for the poorer segments of the society and hence, the employees have also not paid much attention to its uplift.

4. Major Alternatives

The following two alternatives are proposed and discussed with their pros and cons: hire new and well-trained sales force, or improve on the infrastructure and aesthetics of the facility while taking into consideration the engineers. The first alternative would bring fresh perspectives and ideas to the facility at Scarborough. The current management and sales team is not cordial with the members that are why the community members are switching to competitors. A customer feedback survey presented in Exhibit 2 also clarifies that the members of the YMCA are not satisfied with the current service by sales staff and employees. A well-trained sales force would have the drive to serve the members.

The second alternative has the disadvantage of being costly, but it would serve as a long-run benefit for Scarborough YMCA. Improving the infrastructure and beautifying the whole complex would attract respectable and affluent families of the area. Furthermore, the members switching to newer centers as part of the competition would decline.