Harvard Case - OHNo Swim Club: Organizational Governance and Mission
"OHNo Swim Club: Organizational Governance and Mission" Harvard business case study is written by David O. Vang. It deals with the challenges in the field of General Management. The case study is 4 page(s) long and it was first published on : Jun 20, 2001
At Fern Fort University, we recommend a comprehensive restructuring of OHNo Swim Club's organizational governance and mission to address its current challenges and enable sustainable growth. This involves a multi-pronged approach encompassing strategic planning, leadership development, organizational culture transformation, and a renewed focus on customer experience and community engagement.
2. Background
OHNo Swim Club, a beloved community institution, faces a critical juncture. The founder, John, is nearing retirement, and the club's leadership structure is outdated, lacking clear succession planning and formal governance. Furthermore, the club's mission is outdated, failing to resonate with the evolving needs of the community and attract new members. This lack of clarity has led to declining membership, financial instability, and a growing sense of uncertainty among staff and members.
The key protagonists are John, the founder and current leader, the board of directors, the staff, and the club's loyal members. Each group has unique perspectives and concerns, which need to be carefully considered during the restructuring process.
3. Analysis of the Case Study
Strategic Analysis:
SWOT Analysis:
- Strengths: Strong community presence, loyal members, experienced staff, established brand recognition.
- Weaknesses: Outdated governance structure, lack of succession planning, declining membership, limited financial resources, outdated facilities, lack of innovation.
- Opportunities: Expand membership base, offer new programs and services, leverage technology for efficiency and customer engagement, partner with local businesses, enhance brand awareness.
- Threats: Competition from other recreational facilities, changing demographics, economic downturn, rising operating costs.
Porter's Five Forces:
- Threat of New Entrants: Moderate, as new recreational facilities might emerge, but barriers to entry are high due to the club's established reputation and community ties.
- Bargaining Power of Buyers: Moderate, as members have choices, but the club offers unique value and community connection.
- Bargaining Power of Suppliers: Low, as the club has multiple suppliers for goods and services.
- Threat of Substitutes: Moderate, as alternative recreational activities exist, but the club offers a unique combination of swimming, social interaction, and community involvement.
- Competitive Rivalry: Moderate, as the club faces competition from other recreational facilities, but it can differentiate itself through its unique offerings and community focus.
Organizational Analysis:
- Organizational Structure: The current structure is hierarchical and centralized, with John holding significant power and control. This lacks transparency and limits decision-making agility.
- Leadership Styles: John's leadership style is autocratic, which has been effective in the past but is no longer suitable for navigating the club's current challenges.
- Corporate Culture: The club's culture is traditional and focused on maintaining the status quo. This inhibits innovation and adaptability.
Financial Analysis:
- Financial Performance: The club's financial performance is declining due to declining membership and limited financial resources.
- Financial Sustainability: The club needs to develop a sustainable financial model that ensures long-term viability.
Marketing Analysis:
- Target Market: The club's target market is the local community, with a focus on families, seniors, and individuals seeking recreational activities.
- Marketing Strategy: The club's current marketing strategy is outdated and ineffective, failing to reach new potential members.
Operational Analysis:
- Operations Strategy: The club's operations are inefficient and lack a focus on customer experience.
- Technology Adoption: The club's technology adoption is limited, hindering its ability to improve efficiency and customer engagement.
4. Recommendations
1. Strategic Planning and Mission Redefinition:
- Develop a new strategic plan: This plan should be developed through a collaborative process involving the board, staff, and key members. It should address the club's strengths, weaknesses, opportunities, and threats, and outline a clear vision for the future.
- Redefine the club's mission: The new mission should be aspirational, relevant to the evolving needs of the community, and reflect a commitment to inclusivity, innovation, and sustainability.
- Develop a comprehensive marketing strategy: This strategy should target new demographics, leverage digital marketing channels, and promote the club's unique value proposition.
2. Organizational Governance and Leadership Development:
- Implement a new governance structure: This structure should be more transparent, accountable, and participatory, with a clear separation of powers between the board and management.
- Develop a succession plan: This plan should identify potential successors for key leadership roles and provide them with the necessary training and development opportunities.
- Implement a leadership development program: This program should focus on developing leadership skills in staff members, fostering a more collaborative and inclusive culture.
3. Organizational Culture Transformation:
- Promote a culture of innovation and change: This can be achieved through employee engagement initiatives, brainstorming sessions, and pilot projects.
- Embrace technology: The club should invest in technology to improve efficiency, enhance customer experience, and expand its reach.
- Foster a culture of diversity and inclusion: The club should actively recruit and retain staff and members from diverse backgrounds, creating a welcoming and inclusive environment for all.
4. Customer Experience and Community Engagement:
- Enhance customer experience: The club should focus on providing exceptional customer service, offering a wide range of programs and services, and creating a welcoming and inclusive environment.
- Strengthen community engagement: The club should partner with local organizations, participate in community events, and offer programs that benefit the community.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of the club's internal and external environment, taking into account its core competencies, mission, customer needs, competitors, and financial viability. The proposed changes are designed to align the club's operations with its redefined mission, enhance its competitiveness, and ensure its long-term sustainability.
Key Assumptions:
- The board of directors is committed to implementing the recommended changes.
- The staff is receptive to change and willing to embrace new roles and responsibilities.
- The community is supportive of the club's efforts to revitalize and expand its services.
6. Conclusion
By implementing these recommendations, OHNo Swim Club can overcome its current challenges, achieve sustainable growth, and solidify its position as a vital community institution. The club's revitalization will require a commitment to change, a collaborative approach, and a focus on creating a vibrant and inclusive environment for all.
7. Discussion
Alternative Options:
- Status quo: Continuing with the current approach would likely lead to further decline in membership, financial instability, and loss of community support.
- Sell the club: This option would provide financial relief but would result in the loss of a valuable community asset.
- Focus solely on financial sustainability: This approach could lead to a loss of focus on the club's mission and community impact.
Risks and Key Assumptions:
- Resistance to change: Some stakeholders may resist the proposed changes.
- Financial constraints: The club may face financial challenges in implementing the recommendations.
- Competition: The club may face increased competition from other recreational facilities.
Options Grid:
| Option | Advantages | Disadvantages | Risk |
|---|---|---|---|
| Status quo | Maintains current operations | Decline in membership, financial instability, loss of community support | High |
| Sell the club | Financial relief | Loss of a valuable community asset | Moderate |
| Focus solely on financial sustainability | Financial stability | Loss of focus on mission and community impact | Moderate |
| Recommended approach | Sustainable growth, enhanced community impact, improved customer experience | Resistance to change, financial constraints, competition | Moderate |
8. Next Steps
Timeline:
- Month 1: Form a task force to develop the strategic plan and redefine the mission.
- Month 2: Conduct a financial audit and develop a sustainable financial model.
- Month 3: Implement a new governance structure and succession plan.
- Month 4: Launch a marketing campaign to attract new members.
- Month 5: Develop and implement a leadership development program.
- Month 6: Begin implementing changes to enhance customer experience and community engagement.
Key Milestones:
- Develop a new strategic plan and redefine the mission.
- Implement a new governance structure and succession plan.
- Launch a successful marketing campaign to attract new members.
- Develop and implement a leadership development program.
- Enhance customer experience and community engagement.
By following these recommendations and taking proactive steps to address the challenges it faces, OHNo Swim Club can secure a bright future and continue to serve as a vital community resource.
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