Vancouver YMCA The Turnaround of a Public Icon Case Solution

2. Analysis

According to Stewart, in many instances the executive directors and advisory board seemed to be running their own mini organizations with little or no oversight from the CEO. It is also clear from the evidence that there was no collaboration across the organization. There was no performance evaluation; hiring and firing was done by executive directors, and a significant disparity in the pay scale existed. Also, the Endowment fund was being reached by everyone, which would lead to a drain on resources. Daycare facilities are falling prey to union drives because of underpaid workers. The fact that daycare and downtown facilities create half of the revenues generated makes it an important concern.

The north shore facility generated the greatest loss of almost $54,148 in 2002 and may need to be closed down (Mark, 2009). Additional cost reduction involves the cancellation of activities such as an $800,000 worth of the dining hall in Camp Howdy (Mark, 2009).

The financial system is in terrible condition because everything is on paper and making pertinent decisions involved knowing the financial condition of the entity. The bank reconciliation statements do not exist which create all the more doubtful aspect of the system. This has recently leaded to activities like thefts of almost $250,000, yet no action was taken (Mark, 2009). Y cannot undertake such adversities in the face of greater ones that already exist; therefore this problem needs to be fixed.

The greatest loss in 2002 was from South Slope and North Shore; South slope retain children and youth, which account for 60% of the member base of the facility, which entails a reduced rate (Mark, 2009). At 40,000 square feet, the facility has potential to triple membership to 6000 members if a cash infusion of 1 million is considered (Mark, 2009). Additionally, out of 30 daycare facilities, only 10 resulted in surpluses, 20 were target to union activities and under excessive wear and tear (Mark, 2009).

3. Decision Criteria

The performance metrics can be identified as:

The perfect solution would entail the solution to immediate to medium term concerns, which would primarily aid in decision making on a continuous basis (Rigsbee, Hall, & Hall, 2013). However, the cost of this transparency may have to be borne by the organization. The benefits must outweigh the cost required to attain such a solution.

Additionally, the perfect solution must require the gears of the organization to get rid of the deadlock and the rustiness towards a fully functional entity. The gears imply the human resources and the deadlock points towards the formation of unions that are hampering functionality (Popa & Demyen, 2013).

Cost outflow and cost inflow are of critical importance, whereby the latter must outweigh the former. This can only be achieved if the transparency is achieved and the organization finds a way to move forward towards a common goal (Ortiz & Gomez, 2013). This would entail cost cutting and selling of properties that is eating away profits.

4. Available Options

The organizational structure should indicate no conflict of interest between the board and the managers. The present situation is an extreme case of a decentralized bureaucratic organization; the change must create a centralized international organization with a certain degree of autonomy at various levels. The human resource department must be created to deal with the union problem (Ben-Ner, 2013). The union problem must be dealt with immediately because it is hampering revenue generation. The HRD must be directly accountable to the CEO (Voet, 2013). Advisory boards must be eliminated at executive levels. All decisions with respect to endowment fund investment distribution must be decided by the CEO under equal representation of the board. The payment imbalance must be eliminated, and promotions must be based on performance evaluation strategies (Leonard & Dietrich, 2013).

The Northshore facility must be immediately closed down, and the revenue generated must be utilized to infuse the South slope facility, whereby a $1 million investment has the potential to create 6000 memberships. Similarly, the $800,000 investment in the dining hall must be cancelled and utilized for updating the financial system of the organization, which requires urgent attention for a consolidated decision making practice throughout Y (Mark, 2009).

Cash Infusion for Daycare and downtown facilities are required. Capital campaign or other fundraising activities would be required. Additionally, since the new areas of Surrey and Langley are burgeoning in social activities, Camp Howdy can be sold out, which is worth 3 million and a facility at Surrey can be created with little adjustments from mortgage generations through rental properties (Mark, 2009).

5. Recommendations and Action Plan

Since YMCA is in deep trouble with excessive losses and a short-term solution is required; therefore, organizational restructuring and transparency is required.