Harvard Case - City Year at 30: Toward Long-Term Impact
"City Year at 30: Toward Long-Term Impact" Harvard business case study is written by Rosabeth Moss Kanter, James Weber. It deals with the challenges in the field of General Management. The case study is 31 page(s) long and it was first published on : Mar 27, 2018
At Fern Fort University, we recommend City Year adopt a multi-pronged strategic approach to achieve long-term impact, focusing on innovation, sustainability, and expansion. This approach involves strengthening core programs, diversifying funding sources, leveraging technology, and building strategic partnerships.
2. Background
City Year is a non-profit organization that mobilizes young adults to serve as mentors and tutors in under-resourced schools. Founded in 1988, City Year has grown significantly, expanding its operations to 29 cities across the US and internationally. The case study focuses on City Year's efforts to transition from a primarily program-focused organization to one that prioritizes long-term, systemic impact.
The main protagonists are:
- Michael Brown, CEO of City Year, who is tasked with leading the organization through this pivotal transition.
- The City Year Board of Directors, who are responsible for setting strategic direction and ensuring financial sustainability.
- The City Year staff, who are responsible for implementing programs and achieving organizational goals.
3. Analysis of the Case Study
Strategic Framework:
To analyze City Year's situation, we will utilize a combination of frameworks:
- SWOT Analysis: This framework helps identify City Year's Strengths, Weaknesses, Opportunities, and Threats.
- Porter's Five Forces: This framework assesses the competitive landscape of the non-profit sector, considering competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitutes.
- Balanced Scorecard: This framework provides a comprehensive view of City Year's performance across four perspectives: financial, customer, internal processes, and learning and growth.
Key Findings:
- Strengths: Strong brand recognition, dedicated staff, proven program effectiveness, strong community partnerships.
- Weaknesses: Limited funding diversification, reliance on individual donors, lack of standardized data collection, potential for program fatigue.
- Opportunities: Growing demand for educational support, increasing interest in social impact investing, technological advancements in education, potential for international expansion.
- Threats: Competition from other non-profits, economic downturns, changing demographics, potential for negative media coverage.
Porter's Five Forces Analysis:
- Competitive Rivalry: High, with many non-profits offering similar services.
- Threat of New Entrants: Moderate, as barriers to entry are relatively low.
- Bargaining Power of Suppliers: Low, as City Year relies on a diverse range of suppliers.
- Bargaining Power of Buyers: Moderate, as donors and funders have various options.
- Threat of Substitutes: Moderate, as other educational programs and interventions exist.
Balanced Scorecard:
- Financial: Increase revenue diversification, reduce reliance on individual donors, improve financial transparency.
- Customer: Enhance program effectiveness, improve student outcomes, strengthen community engagement.
- Internal Processes: Standardize data collection, improve program evaluation, streamline operations.
- Learning and Growth: Foster innovation, attract and retain top talent, promote leadership development.
4. Recommendations
1. Innovation and Program Enhancement:
- Develop new program models: Explore innovative approaches to address specific educational needs, such as early childhood education, STEM education, or college and career readiness.
- Leverage technology: Implement data-driven approaches to program evaluation and student support, utilizing AI and machine learning to personalize learning experiences.
- Develop a social impact measurement framework: Track and measure the long-term impact of City Year programs, demonstrating the organization's value proposition to funders and stakeholders.
2. Diversification and Sustainability:
- Expand fundraising sources: Explore corporate partnerships, foundation grants, social impact bonds, and crowdfunding platforms.
- Develop a robust marketing and communications strategy: Enhance brand awareness, engage with potential donors, and showcase City Year's impact.
- Implement a cost-effective operational model: Optimize resource allocation, streamline processes, and leverage technology to enhance efficiency.
3. Strategic Partnerships and Expansion:
- Form strategic alliances: Partner with schools, government agencies, and other non-profits to leverage resources and expand reach.
- Explore international expansion: Identify promising emerging markets with high demand for educational support and align with local partners.
- Develop a talent management strategy: Attract and retain top talent, invest in leadership development, and foster a culture of innovation and continuous improvement.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of City Year's strengths, weaknesses, opportunities, and threats. They align with the organization's mission to provide educational support and promote youth development. The recommendations are also consistent with current trends in the non-profit sector, such as the growing importance of data-driven decision making, impact measurement, and strategic partnerships.
The recommendations are attractive because they:
- Increase revenue diversification: This reduces City Year's reliance on individual donors and enhances financial sustainability.
- Improve program effectiveness: This strengthens City Year's impact and strengthens its value proposition to funders and stakeholders.
- Expand reach and impact: This allows City Year to reach more students and communities in need.
6. Conclusion
City Year stands at a critical juncture, poised to transition from a program-focused organization to one that prioritizes long-term, systemic impact. By embracing innovation, diversifying funding sources, leveraging technology, and building strategic partnerships, City Year can achieve its ambitious goals and create a lasting legacy of educational excellence.
7. Discussion
Alternative Options:
- Focusing solely on program expansion: This approach may lead to unsustainable growth and strain resources.
- Adopting a purely technology-driven approach: This may alienate stakeholders and fail to address the human element of education.
- Maintaining the status quo: This would limit City Year's potential for growth and impact.
Risks and Key Assumptions:
- Economic downturn: This could impact funding sources and reduce donor support.
- Competition from other non-profits: This could limit City Year's market share and impact.
- Technological advancements: Rapidly evolving technology could require City Year to adapt its approach.
Options Grid:
| Option | Advantages | Disadvantages | Risks |
|---|---|---|---|
| Multi-pronged strategic approach | Increased impact, sustainability, and growth | Requires significant investment and change management | Economic downturn, competition, technological disruption |
| Focusing solely on program expansion | Increased reach and impact | Unsustainable growth, strain on resources | |
| Adopting a purely technology-driven approach | Efficiency, scalability, data-driven decision-making | Alienation of stakeholders, lack of human touch | |
| Maintaining the status quo | Stability, familiarity | Limited growth, potential for stagnation |
8. Next Steps
- Develop a detailed strategic plan: This plan should outline specific goals, objectives, timelines, and resources for each recommendation.
- Establish a task force: This team should be responsible for implementing the strategic plan and monitoring progress.
- Communicate effectively: City Year should communicate its strategic vision to all stakeholders, including staff, donors, partners, and the public.
- Continuously evaluate and adapt: City Year should regularly assess the effectiveness of its strategies and make adjustments as needed.
By taking these steps, City Year can position itself for long-term success and continue to make a meaningful difference in the lives of students and communities around the world.
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Case Description
In 2018, City Year was a 30 year old nonprofit that recruited and organized teams of young-adult "volunteers" (corps teams) to provide a year of citizen service. It had 3,100 corps members serving in 327 schools located in 28 U.S. cities. In its early decades, City Year provided a variety of services to a variety of organizations in need. Over its most recent decade, City Year had pivoted to having all corps members serve in low-income public schools to keep students on track to graduation in an effort to reduce the nation's high school dropout rate. City Year also worked with partners to help schools transform themselves to better meet the needs of low-income students, and worked with policy makers and elected officials to promote the value of national citizen service. In 2012, City Year launched a Long Term Impact strategy (LTI) aimed at making a substantial improvement in high school graduation rates. The LTI required City Year to transform itself over time to create an organization capable of delivering its ambitious impact strategy. The case explores City Year's history and its efforts to align its organization with its strategy. In March 2018, City Year CEO Michael Brown must examine the state of his organization and its strategy to determine next steps to achieving its LTI goals.
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