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Vancouver YMCA The Turnaround of a Public Icon Case Solution

Solution Id Length Case Author Case Publisher
990 1833 Words (9 Pages) Gerard H Seijts, Ken Mark Ivey Publishing : 9B09C017
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The primary issue facing Y is the organizational structure which inherits the crux of imbalance within the organization. The separate advisory boards for each unit are an excessive burden, and the fact that each member of these advisory boards is also on the board of governors is a conflict of interest. Campuses that prove to be a burdensome on Y; whereby, the costs are grater than the revenues, and there is low potential must be shutdown. The financial system is absolutely terrible, whereby no check and balance is available on the entities daily activities. Furthermore, the rising competition has not been catered to and most of the important campuses have been out-of-date, eroding brand value and causing more harm. 

Following questions are answered in this case study solution

  1. Critical Issues

  2. Analysis

  3. Decision Criteria

  4. Option Analysis

  5. Recommendations and action plan

Case Analysis for Vancouver YMCA The Turnaround of a Public Icon

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).



Organizational Structure

  • HR Department absent

  • Hierarchical imbalance

  • Wage Imbalance

  • Conflict of Interest

  • Every Facility is run as an individual unit

  • Lack of unity among the human resource

  • Union Issues

Northshore shutdown and expense cutbacks

  • $54,148 loss in 2002, no potential in future

  • $800,000 in dining hall maintenance

  • Exhaustion of $1 million line of credit

Financial System

  • No formal method of record keeping

  • Theft worth $250,000

  • No bank reconciliation statements

  • Hampering decision making

Cash Infusion

  • Excessive wear and tear in some of the potentially high revenue generating facilities

  • Creation of new ones in burgeoning locations (eg. Surrey)

3. Decision Criteria

The performance metrics can be identified as:




Organizational Structure

Balance of power and human resource management

  • Centralization vs. Decentralization

  • Number of board of governors

  • Existence of Unions

  • Pascale at each level

  • Number of employees

Northshore shutdown and expense cutback

Lowering Costs and lowering losses

  • Net Surplus (Deficit)

  • Expenses

Financial System


  • Number of thefts

  • Availability of records

Cash Infusion

Facility Creation and Facility Maintenance

  • Number of new facilities created

  • Number of memberships created

  • Potential of facilities (Capacity)

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).



Relation with decision criteria

Option Cost



Balance of power and human resource management

  • Creation of HRD

  • Hiring new employees

  • Limiting board of governors

  • Lead to handling of labor unions

  • Handling of employees and governors.

  • Contingent on wages payable to new HRD employees

  • In terms of operational capabilities

  • New changes may be uncomfortable

  • Balance of pay scale

Lowering Costs and lowering losses

  • Sell Northshore facility

  • Eliminate dining hall maintenance cost

  • Selling the facility will lower losses

  • Eliminating such expenses would lead to lower cost burden

  • Zero Cost (net deficit elimination)

  • +Northshore worth of $3million

  • Elimination of a very important facility with vast activities

  • Cost trimming would lead to efficient operations


  • Appointing a centralized system

  • New policy creation mandating financial records

  • Data collection would allow for the easy identification of thefts

  • The new policy would allow for the better decision making

  • $760,000 to *$ 1million

  • In terms of operational capabilities

  • Aid in decision making

Facility Creation and Facility Maintenance

  • Selling property (camps) in low locality areas and buy new land in high density areas

  • Infusing $1 million in Southslope

  • Refurbishing downtown and daycare facilities

  • Allow for the increase in memberships

  • Increase in facilities

  • Increase in revenues

  • $4-8 million to buy the new land in Surrey or Langley

  • $1 million in Southslope

  • $4-8 million in Downtown refurbishing

  • 6000 memberships at Southslope leading to 40-50% increase in revenue

  • Long-term profit generation from Surrey and Downtown facilities

  • Increase in revenue generation

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. 

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