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Harvard Case - Growing Pains at Santropol Roulant, Part A: A New Beginning

"Growing Pains at Santropol Roulant, Part A: A New Beginning" Harvard business case study is written by Charlotte Cloutier, Fannie Couture. It deals with the challenges in the field of General Management. The case study is 10 page(s) long and it was first published on : Sep 1, 2017

At Fern Fort University, we recommend Santropol Roulant adopt a phased approach to manage its growth while preserving its core values. This approach will involve strategic planning, organizational restructuring, strengthening leadership, and implementing a robust fundraising strategy to ensure long-term sustainability and impact.

2. Background

Santropol Roulant is a non-profit organization in Montreal, Canada, providing social services like meal delivery and community gardening. The organization has experienced significant growth in recent years, facing challenges in managing its increased workload and maintaining its commitment to social justice and environmental sustainability.

The main protagonists are:

• Daniel: The Executive Director, a passionate leader focused on expanding Santropol Roulant's reach.
• The Board: Concerned about maintaining the organization's core values and financial stability amidst growth.
• The Staff: Committed to the mission but feeling overwhelmed by the increasing workload and lack of clear direction.

3. Analysis of the Case Study

Strategic Analysis:

• SWOT Analysis:
  • Strengths: Strong community support, dedicated staff, commitment to social justice and environmental sustainability.
  • Weaknesses: Limited resources, lack of clear strategic direction, potential for staff burnout.
  • Opportunities: Expanding services to new communities, leveraging technology for efficiency, increasing fundraising capacity.
  • Threats: Competition from other non-profits, economic downturn impacting donations, difficulty attracting and retaining skilled staff.
• Porter's Five Forces:
  • Threat of New Entrants: Moderate, as the barrier to entry for social service organizations is relatively low.
  • Bargaining Power of Buyers: Low, as beneficiaries rely on Santropol Roulant's services.
  • Threat of Substitutes: Moderate, as other organizations may offer similar services.
  • Bargaining Power of Suppliers: Moderate, as Santropol Roulant relies on volunteers and donors.
  • Competitive Rivalry: Moderate, as the non-profit sector is competitive.
• Financial Analysis:
  • Santropol Roulant faces financial constraints despite increasing demand for its services.
  • The organization needs to improve its fundraising capacity and manage resources effectively.

Organizational Analysis:

• Organizational Culture: Strong focus on community engagement, volunteerism, and social justice.
• Leadership Style: Daniel's leadership is passionate but lacks a clear strategic vision and operational focus.
• Decision-Making Processes: Decision-making is decentralized, leading to inconsistencies and delays.
• Performance Evaluation: Lack of clear performance metrics and feedback mechanisms for staff.

4. Recommendations

Phase 1: Stabilize and Refine (6 months)

1. Develop a Strategic Plan: Create a comprehensive strategic plan with clear goals, objectives, and key performance indicators (KPIs) aligned with the organization's mission and values.
2. Strengthen Leadership: Provide Daniel with leadership training and support to develop a more strategic and operational mindset.
3. Implement a Robust Fundraising Strategy: Develop a diversified fundraising strategy, including major donor cultivation, grant writing, and online fundraising campaigns.
4. Improve Operational Efficiency: Streamline operations by implementing technology solutions for logistics, communication, and volunteer management.
5. Assess and Improve Staff Wellbeing: Conduct staff surveys to assess morale and identify areas for improvement in workload management, training, and professional development.

Phase 2: Expand and Innovate (12 months)

1. Expand Services Strategically: Identify new communities and service areas for expansion based on need and resource availability.
2. Develop Innovative Programs: Explore new service offerings that address emerging social needs and leverage technology for greater impact.
3. Build Strategic Partnerships: Collaborate with other organizations to leverage resources and expand reach.
4. Implement a Data-Driven Approach: Use data analytics to track program effectiveness, measure impact, and inform decision-making.
5. Strengthen Corporate Governance: Enhance board oversight and accountability by implementing clear governance structures, policies, and procedures.

Phase 3: Sustain and Grow (Ongoing)

1. Develop a Succession Plan: Identify and groom potential leaders to ensure continuity and long-term sustainability.
2. Cultivate a Culture of Innovation: Encourage staff to develop new ideas and solutions to address emerging challenges.
3. Embrace Digital Transformation: Leverage technology to enhance service delivery, communication, and fundraising efforts.
4. Foster a Culture of Continuous Improvement: Implement a system for regular performance evaluation and feedback to drive ongoing improvement.
5. Monitor and Adapt: Continuously monitor the organization's performance and adapt strategies based on changing needs and opportunities.

5. Basis of Recommendations

These recommendations are based on the following considerations:

• Core competencies and consistency with mission: The recommendations prioritize maintaining Santropol Roulant's core values of social justice and environmental sustainability while enabling growth.
• External customers and internal clients: The recommendations address the needs of beneficiaries, volunteers, staff, and donors.
• Competitors: The recommendations consider the competitive landscape and identify opportunities for differentiation.
• Attractiveness: The recommendations are designed to improve financial sustainability, increase impact, and ensure long-term growth.

6. Conclusion

Santropol Roulant faces a critical juncture in its journey. By implementing a phased approach to growth, the organization can navigate its challenges while preserving its core values and achieving its mission. This approach will require a commitment to strategic planning, organizational restructuring, leadership development, and a robust fundraising strategy.

7. Discussion

Alternatives:

• Rapid expansion: This approach could lead to unsustainable growth and strain on resources.
• Status quo: This approach would fail to address the organization's challenges and limit its potential impact.

Risks:

• Insufficient funding: The organization may struggle to secure adequate funding for its ambitious plans.
• Staff burnout: The increased workload could lead to staff burnout and turnover.
• Loss of core values: The organization may lose sight of its core values during the growth process.

Key Assumptions:

• Santropol Roulant has the capacity to attract and retain qualified staff.
• The organization can secure sufficient funding to support its growth plans.
• The organization can effectively manage its growth and maintain its commitment to social justice and environmental sustainability.

8. Next Steps

Timeline:

• Month 1-3: Conduct a comprehensive strategic planning process.
• Month 4-6: Implement key operational improvements and strengthen leadership.
• Month 7-12: Develop and launch new programs and expand services strategically.
• Month 13-24: Continuously monitor performance, adapt strategies, and build a sustainable future for Santropol Roulant.

Key Milestones:

• Development and implementation of a strategic plan.
• Completion of a fundraising campaign to secure additional resources.
• Launch of new programs and services.
• Establishment of a robust performance evaluation system.

By taking these steps, Santropol Roulant can navigate its growing pains and emerge as a stronger, more impactful organization, serving its community with renewed purpose and commitment.

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Case Description

This case examines the challenges faced by a grassroots non-profit struggling to carry out its mission and stabilize its finances in an increasingly competitive and demanding funding environment over a twenty-year period. It examines the issues faced by non-profits as they chart a course for growth despite precarious funding and divergent stakeholder expectations, examining the often difficult and paradoxical decisions that non-profit managers must make to ensure the survival of their organizations. Santropol Roulant (SR) is a small, community-based non-profit offering a meals-on-wheels service to individuals living with a loss of autonomy. Founded in 1995, SR's mission is to provide an important service to the community while enabling young people to gain valuable work and leadership experience. Despite numerous setbacks, many typical of those encountered by grassroots non-profits, SR managed to grow and thrive without compromising its "ethos" and happily celebrated its 20th anniversary in 2015.

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