Harvard Case - United Way of America: Governance in the Nonprofit Sector (A), The United Way
"United Way of America: Governance in the Nonprofit Sector (A), The United Way" Harvard business case study is written by Jay W. Lorsch, Alison H. Watson. It deals with the challenges in the field of Human Resource Management. The case study is 11 page(s) long and it was first published on : Oct 12, 1993
At Fern Fort University, we recommend a comprehensive overhaul of the United Way of America's (UWA) governance structure, focusing on streamlining decision-making, enhancing accountability, and fostering a more collaborative and innovative culture. This approach will involve a combination of organizational change, talent management, and strategic HR planning to address the challenges of a rapidly evolving landscape for non-profit organizations.
2. Background
The case study highlights the United Way of America's (UWA) struggle to maintain relevance and effectiveness in a changing environment. The organization faces challenges in its governance structure, including a complex network of local chapters, a lack of clear accountability, and a struggle to adapt to evolving donor preferences and societal needs. The case study focuses on the challenges faced by UWA's CEO, Brian Gallagher, as he attempts to implement change within the organization.
The main protagonists of the case study are Brian Gallagher, the CEO of UWA, and the various stakeholders within the organization, including local chapter leaders, board members, and donors.
3. Analysis of the Case Study
The case study can be analyzed through the lens of several frameworks:
Strategic Framework: UWA needs to develop a clear, compelling, and unified strategic plan that aligns with its mission and addresses the changing needs of its stakeholders. This plan should include a detailed operations strategy outlining how UWA will achieve its goals, including resource allocation, program development, and fundraising strategies.
Organizational Behavior Framework: The case study highlights the importance of organizational culture and leadership styles in driving change. UWA needs to foster a culture of collaboration, innovation, and accountability. This requires strong leadership development programs for both local chapter leaders and UWA headquarters staff, focusing on empowering leaders to drive change and embrace new ideas.
Human Resource Management Framework: UWA needs to implement a comprehensive talent management strategy to attract, develop, and retain the best talent. This includes:
- Recruitment Strategies: Developing a robust recruitment process to attract diverse talent with the skills and experience needed to navigate the evolving landscape of non-profit work.
- Employee Retention: Implementing strategies to retain valuable employees, including competitive compensation and benefits, opportunities for career advancement, and a supportive work environment.
- Employee Performance Management: Establishing clear performance expectations and providing regular feedback to ensure employees are aligned with organizational goals.
- Training and Development: Investing in ongoing training and development programs to enhance employee skills and knowledge, particularly in areas like technology, data analytics, and fundraising.
Change Management Framework: UWA needs a structured approach to managing change, including:
- Communication: Clear and consistent communication with stakeholders about the rationale for change, the expected impact, and the benefits of the new direction.
- Employee Engagement: Involving employees in the change process to build ownership and ensure buy-in.
- Leadership Support: Demonstrating strong leadership support for the change initiative to build trust and confidence.
4. Recommendations
To address the challenges outlined in the case study, UWA should implement the following recommendations:
1. Governance Reform:
- Streamline Decision-Making: Establish a more centralized governance structure with clear lines of authority and accountability. This could involve consolidating the role of the board of directors and creating a smaller, more strategic executive committee.
- Enhance Accountability: Implement performance metrics and reporting mechanisms to track progress towards organizational goals and hold local chapters accountable for their performance.
- Promote Collaboration: Foster a collaborative culture between UWA headquarters and local chapters, encouraging knowledge sharing and best practice exchange.
2. Talent Management:
- Develop a Strategic HR Plan: Align HR strategy with the organization's overall strategic plan, focusing on attracting, developing, and retaining talent that aligns with UWA's mission and future direction.
- Invest in Leadership Development: Implement comprehensive leadership development programs for both local chapter leaders and UWA headquarters staff, focusing on developing skills in strategic thinking, change management, and collaborative leadership.
- Strengthen Recruitment Strategies: Develop a robust recruitment process that attracts diverse talent with the skills and experience needed to navigate the evolving landscape of non-profit work. This could involve leveraging recruitment technology and partnering with relevant organizations to reach a wider pool of candidates.
- Implement a Comprehensive Compensation and Benefits Package: Offer competitive compensation and benefits to attract and retain top talent, including opportunities for career development and employee wellness programs.
3. Organizational Change:
- Embrace Technology and Analytics: Leverage technology and analytics to improve efficiency, enhance fundraising efforts, and gain deeper insights into donor behavior and program impact.
- Promote Innovation: Encourage a culture of innovation by creating spaces for experimentation and supporting pilot programs that test new ideas and approaches.
- Foster Diversity and Inclusion: Create a more diverse and inclusive organizational culture that values different perspectives and experiences. This will require a commitment to diversity and inclusion training and the development of policies that promote equal opportunity.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations focus on strengthening UWA's core competencies in fundraising, program development, and community engagement, ensuring they remain aligned with the organization's mission of improving lives.
- External Customers and Internal Clients: The recommendations consider the needs of both external customers (donors and beneficiaries) and internal clients (employees and local chapters), ensuring a balanced approach that benefits all stakeholders.
- Competitors: The recommendations acknowledge the competitive landscape for non-profit organizations and emphasize the need for UWA to differentiate itself through innovation, efficiency, and a strong commitment to its mission.
- Attractiveness: The recommendations are expected to increase UWA's attractiveness to donors, volunteers, and potential employees. This will be achieved through improved efficiency, stronger performance, and a more compelling organizational narrative.
- Assumptions: The recommendations assume that UWA is committed to implementing these changes and that the organization's leadership will provide the necessary support and resources.
6. Conclusion
By implementing these recommendations, UWA can strengthen its governance structure, enhance its talent management practices, and embrace a culture of innovation and collaboration. This will enable the organization to adapt to the changing landscape of non-profit work, maintain its relevance, and continue to make a positive impact on communities around the world.
7. Discussion
Other alternatives not selected include:
- Maintaining the status quo: This would likely lead to continued decline in relevance and effectiveness, as UWA struggles to keep pace with the changing environment.
- Merging with other organizations: While this could offer some benefits, it would require careful consideration and planning, and it is not a guaranteed solution.
The key risks associated with these recommendations include:
- Resistance to change: Some stakeholders may resist the proposed changes, particularly those who are comfortable with the current system.
- Lack of resources: Implementing these recommendations will require significant investment in time, money, and resources.
- Unforeseen challenges: The non-profit sector is constantly evolving, and UWA may face unforeseen challenges that require further adaptation.
8. Next Steps
To implement these recommendations, UWA should:
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and responsible parties for each recommendation.
- Communicate the plan to stakeholders: Clear and consistent communication is essential to build buy-in and address concerns.
- Monitor progress and make adjustments: Regularly track progress towards goals and make adjustments to the plan as needed.
By taking these steps, UWA can successfully navigate the challenges of the 21st century and continue to fulfill its mission of improving lives.
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Case Description
Discusses the management practices of William Aramony at the United Way of America (UWA). First, the case describes the United Way movement, focusing on both the local chapters and the national organization. Second, it sets forth the Washington Post reports that lead to the UWA scandal. Third, it shows how the board of governors, the local chapters, Aramony, and donors responded to the scandal.
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