Harvard Case - Fundacion Otra Sociedad
"Fundacion Otra Sociedad" Harvard business case study is written by Roberto Gutierrez, Jose Camilo Davila. It deals with the challenges in the field of General Management. The case study is 16 page(s) long and it was first published on : Sep 9, 2020
At Fern Fort University, we recommend Fundaci'n Otra Sociedad (FOS) adopt a strategic approach to growth and sustainability by focusing on building a strong brand, expanding its reach through strategic partnerships, and leveraging technology for operational efficiency and impact measurement. This will involve a multi-pronged approach encompassing organizational restructuring, talent development, and a shift towards a data-driven decision-making culture.
2. Background
Fundaci'n Otra Sociedad (FOS) is a non-profit organization in Colombia committed to empowering marginalized communities through educational and social programs. FOS faces challenges in scaling its impact due to limited resources, a lack of structured processes, and a need for greater transparency and accountability. The case study focuses on the organization's efforts to navigate these challenges and develop a sustainable growth strategy.
The main protagonists are:
- Maria: The founder and director of FOS, passionate about the organization's mission but struggling to manage its growth.
- The Board of Directors: A group of individuals who provide oversight and guidance but lack a clear understanding of FOS's strategic direction.
- The Staff: Dedicated individuals working tirelessly to achieve the organization's goals but hampered by limited resources and unclear roles.
3. Analysis of the Case Study
This analysis utilizes a SWOT framework to assess FOS's internal and external environment:
Strengths:
- Strong Mission and Vision: FOS has a clear and compelling mission to empower marginalized communities.
- Dedicated Staff: FOS has a team of passionate and committed individuals who are deeply invested in the organization's success.
- Community Trust: FOS has built strong relationships with the communities it serves, earning their trust and respect.
Weaknesses:
- Limited Resources: FOS struggles with financial constraints and limited access to funding.
- Lack of Structure: FOS lacks a formal organizational structure, leading to inefficiencies and unclear roles.
- Data Collection and Analysis: FOS lacks a robust system for collecting and analyzing data to measure impact and guide decision-making.
Opportunities:
- Growing Demand for Social Impact: There is an increasing demand for organizations that address social issues, creating opportunities for FOS to expand its reach.
- Technological Advancements: Technology can be leveraged to improve operational efficiency, enhance communication, and expand access to educational resources.
- Strategic Partnerships: Collaborating with other organizations can provide access to resources, expertise, and new markets.
Threats:
- Competition: FOS faces competition from other non-profits and government programs.
- Economic Volatility: Economic downturns can impact funding and donor support.
- Political Instability: Political instability can create challenges for non-profits operating in emerging markets.
4. Recommendations
1. Develop a Strong Brand Identity:
- Conduct Market Research: Understand the target audience and competitive landscape.
- Develop a Brand Strategy: Define FOS's unique value proposition, mission, and vision.
- Create a Consistent Brand Identity: Develop a strong visual identity, messaging, and communication strategy.
- Leverage Social Media: Use social media platforms to connect with stakeholders and build a strong online presence.
2. Expand Reach Through Strategic Partnerships:
- Identify Potential Partners: Seek out organizations with complementary missions and resources.
- Develop Partnership Agreements: Establish clear terms and conditions for collaboration.
- Leverage Partner Networks: Access new markets and audiences through partner connections.
- Foster Collaboration: Build strong relationships with partners to ensure successful collaboration.
3. Leverage Technology for Efficiency and Impact Measurement:
- Implement a Data Management System: Develop a system for collecting, storing, and analyzing data on program impact.
- Utilize Technology for Program Delivery: Explore online learning platforms and digital tools to enhance program delivery.
- Develop a Website and Online Presence: Create a user-friendly website to share information about FOS and its programs.
- Leverage Data Analytics: Use data to track progress, identify areas for improvement, and inform decision-making.
4. Implement Organizational Change:
- Develop a Clear Organizational Structure: Define roles and responsibilities, establish reporting lines, and create a more efficient structure.
- Invest in Talent Development: Provide training and development opportunities for staff to enhance their skills and expertise.
- Promote a Culture of Collaboration: Foster a collaborative work environment that encourages open communication and teamwork.
- Implement a Performance Evaluation System: Establish clear performance metrics and conduct regular performance reviews to ensure accountability.
5. Enhance Financial Sustainability:
- Develop a Diversified Funding Strategy: Explore multiple funding sources, including grants, corporate sponsorships, and individual donations.
- Implement Cost-Effective Practices: Optimize resource allocation and implement cost-saving measures.
- Increase Transparency and Accountability: Develop a clear financial reporting system and ensure transparency in financial management.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with FOS's core mission of empowering marginalized communities and focus on building a sustainable organization that can achieve its goals.
- External Customers and Internal Clients: The recommendations prioritize the needs of FOS's beneficiaries, partners, and staff, ensuring that all stakeholders benefit from the organization's growth.
- Competitors: The recommendations address the competitive landscape by emphasizing brand building, strategic partnerships, and technology adoption to differentiate FOS from other non-profits.
- Attractiveness: The recommendations are expected to lead to increased impact, expanded reach, and improved financial stability, making FOS more attractive to donors and partners.
6. Conclusion
By embracing a strategic approach to growth and sustainability, Fundaci'n Otra Sociedad can overcome its current challenges and achieve its mission of empowering marginalized communities in Colombia. The recommendations outlined above provide a roadmap for FOS to build a strong brand, expand its reach, leverage technology, and create a more efficient and impactful organization.
7. Discussion
Alternatives:
- Focusing solely on fundraising: This approach could lead to short-term gains but might not address the underlying challenges of organizational structure and efficiency.
- Maintaining the current status quo: This would limit FOS's ability to grow and achieve its full potential.
Risks:
- Resistance to change: Staff may resist changes to the organizational structure or the adoption of new technologies.
- Lack of funding: FOS may struggle to secure sufficient funding to implement all of the recommendations.
- Competition: FOS may face increased competition from other organizations operating in the same space.
Key Assumptions:
- Commitment to change: FOS's leadership and staff are committed to implementing the recommended changes.
- Availability of resources: FOS will have access to the necessary financial and human resources to implement the recommendations.
- Positive external environment: The political and economic environment will remain stable, allowing FOS to continue its operations and grow.
8. Next Steps
Timeline:
- Year 1: Develop a strategic plan, implement organizational restructuring, and build a strong brand identity.
- Year 2: Focus on developing strategic partnerships and leveraging technology for program delivery and impact measurement.
- Year 3: Continue to expand reach, refine operational processes, and ensure financial sustainability.
Key Milestones:
- Develop a strategic plan: Within 6 months.
- Implement organizational restructuring: Within 12 months.
- Launch a new website and online presence: Within 18 months.
- Secure funding for key initiatives: On an ongoing basis.
- Track progress and adjust strategies as needed: On an ongoing basis.
By taking these steps, Fundaci'n Otra Sociedad can position itself for sustainable growth and make a lasting impact on the lives of marginalized communities in Colombia.
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Case Description
The case describes the last quarter century in the Foundation's life cycle. During these years, the Foundation developed a governance structure and conditions of governance that allowed it to become the parent company of a group of enterprises in addition to being faithful to its mission, dealing with the moral hazard present in the different agency relationships, and remaining active in the environment in which it competed.In March 2017, 15 months following the withdrawal of the founding religious order, the relevant issue for the Foundation's director -following the validation of the organization's strategic orientation- was whether or not it was time to reconfigure its governance structure.
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