Harvard Case - American Heart Association: Reorganization of the Western States Affiliate
"American Heart Association: Reorganization of the Western States Affiliate" Harvard business case study is written by Glenn R. Carroll, Kristina Ho. It deals with the challenges in the field of Organizational Behavior. The case study is 19 page(s) long and it was first published on : Mar 19, 2002
At Fern Fort University, we recommend a comprehensive reorganization of the Western States Affiliate of the American Heart Association (AHA) focusing on enhancing operational efficiency, fostering a collaborative culture, and leveraging data-driven insights to achieve strategic goals. This reorganization will involve a multi-pronged approach, encompassing changes to organizational structure, leadership styles, talent management, and communication strategies.
2. Background
The case study focuses on the Western States Affiliate of the AHA, facing challenges in achieving its fundraising and programmatic goals. The affiliate is struggling with low employee morale, a lack of collaboration across departments, and a fragmented approach to fundraising. The current organizational structure, characterized by silos and a hierarchical leadership style, inhibits innovation and agility.
The main protagonists are:
- Dr. James Martin: The new CEO of the Western States Affiliate, tasked with leading the organization through a period of transformation.
- The Executive Team: Composed of senior leaders from various departments, grappling with the challenges of a dysfunctional organizational culture and struggling to achieve their goals.
- The Staff: A diverse group of employees with varying levels of experience and motivation, facing a lack of clarity about their roles and responsibilities.
3. Analysis of the Case Study
The case study highlights several key issues:
- Organizational Culture: The current culture is characterized by a lack of trust, collaboration, and open communication. This is hindering innovation, employee engagement, and overall performance.
- Leadership Style: The hierarchical leadership style, coupled with a lack of clear communication and delegation, is creating a sense of disengagement and hindering employee motivation.
- Organizational Structure: The siloed structure prevents cross-functional collaboration, leading to inefficiencies and duplication of efforts.
- Talent Management: The lack of a robust talent management strategy is hindering the organization's ability to attract, develop, and retain high-performing employees.
- Fundraising Strategy: The fragmented approach to fundraising is not maximizing resources and hindering the organization's ability to meet its financial goals.
Frameworks used for analysis:
- Organizational Behavior: We analyze the case through the lens of organizational culture, leadership styles, team dynamics, and motivation theories.
- Change Management: We identify the need for a structured change management process to effectively implement the proposed reorganization.
- Power and Politics in Organizations: We understand the dynamics of power and influence within the organization and how they impact decision-making and collaboration.
- Decision-Making Processes: We analyze the decision-making processes within the organization and identify opportunities for improvement.
- Employee Engagement: We assess the current level of employee engagement and identify strategies to enhance it through the reorganization.
4. Recommendations
1. Reorganize the Organizational Structure:
- Move to a matrix structure: This will encourage cross-functional collaboration and break down silos.
- Create cross-functional teams: This will allow employees to work together on specific projects, fostering innovation and shared responsibility.
- Empower employees: Delegate decision-making authority to lower levels, fostering a sense of ownership and accountability.
2. Implement a New Leadership Style:
- Adopt a transformational leadership style: This will focus on inspiring and motivating employees, setting a clear vision, and empowering them to achieve their full potential.
- Develop leadership skills: Provide leadership training programs for all levels of management, focusing on communication, delegation, and conflict resolution.
- Promote a culture of transparency and open communication: Encourage open dialogue and feedback, creating a more inclusive and collaborative environment.
3. Enhance Talent Management:
- Develop a robust talent management strategy: This should include talent acquisition, development, and retention strategies to attract and retain top talent.
- Implement performance management systems: Establish clear performance expectations, provide regular feedback, and offer opportunities for growth and development.
- Create a culture of learning and development: Encourage employees to pursue professional development opportunities and invest in their skills.
4. Redefine Fundraising Strategy:
- Develop a data-driven fundraising strategy: Leverage data analytics to identify potential donors and tailor fundraising campaigns to their interests.
- Focus on building relationships with donors: Cultivate long-term relationships with donors through personalized communication and engagement.
- Explore new fundraising channels: Consider online fundraising platforms and social media campaigns to reach a wider audience.
5. Implement a Comprehensive Change Management Process:
- Communicate the need for change: Clearly communicate the rationale behind the reorganization and its potential benefits.
- Involve employees in the process: Seek input from employees at all levels, ensuring their voices are heard and concerns addressed.
- Provide training and support: Offer training programs and resources to help employees adapt to the new structure and processes.
- Celebrate successes: Recognize and reward employees for their contributions to the successful implementation of the reorganization.
5. Basis of Recommendations
These recommendations are based on:
- Core competencies and consistency with mission: The recommendations align with the AHA's mission to improve heart health and stroke prevention.
- External customers and internal clients: The recommendations aim to improve the organization's ability to serve its external customers (donors and beneficiaries) and internal clients (employees).
- Competitors: The recommendations consider the competitive landscape and aim to position the AHA as a leader in the field of heart health.
- Attractiveness ' quantitative measures: The recommendations are expected to lead to increased fundraising, improved employee engagement, and enhanced operational efficiency, ultimately contributing to the AHA's financial sustainability and impact.
Assumptions:
- The leadership team is committed to implementing the proposed changes.
- Employees are willing to embrace the new organizational culture and processes.
- The AHA has the resources to invest in the necessary training and support for the reorganization.
6. Conclusion
By implementing these recommendations, the Western States Affiliate of the AHA can overcome its current challenges, foster a collaborative and innovative culture, and achieve its strategic goals. The reorganization will empower employees, enhance efficiency, and ultimately improve the organization's ability to make a positive impact on the lives of those affected by heart disease and stroke.
7. Discussion
Alternatives not selected:
- Status quo: This option would maintain the current organizational structure and leadership style, but would likely lead to continued challenges and stagnation.
- Downsizing: This option could reduce costs but would likely negatively impact employee morale and potentially hinder the organization's ability to achieve its goals.
Risks and key assumptions:
- Resistance to change: Some employees may resist the proposed changes, which could hinder the implementation process.
- Lack of leadership commitment: Without strong leadership support, the reorganization may not be successful.
- Insufficient resources: Implementing the reorganization requires significant investment in training, technology, and other resources.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Reorganization | Increased collaboration, improved efficiency, enhanced employee engagement | Resistance to change, potential for disruption, investment required |
| Status quo | Minimal disruption | Continued challenges, stagnation, potential for decline |
| Downsizing | Reduced costs | Negative impact on employee morale, potential loss of talent, reduced capacity |
8. Next Steps
- Develop a detailed implementation plan: This plan should outline the specific steps involved in implementing the reorganization, including timelines, responsibilities, and resources required.
- Communicate the plan to employees: Clearly communicate the plan to all employees, addressing their concerns and seeking their input.
- Pilot test the new structure and processes: Implement the reorganization in a pilot program to assess its effectiveness and make necessary adjustments.
- Monitor progress and make adjustments: Continuously monitor the progress of the reorganization and make adjustments as needed to ensure its success.
By following these steps, the Western States Affiliate of the AHA can successfully implement the reorganization and achieve its strategic goals, creating a more collaborative, efficient, and impactful organization.
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Case Description
In 1997, the American Heart Association (AHA) Western States Affiliate reorganized to increase fundraising revenues for the nonprofit. Rather than having a wide range of fundraising and programmatic duties, all staff now had key fundraising and programmatic activities. Some staff had been dissatisfied with the new scope and reporting structure of their positions. Roman Bowser, the executive vice president and CEO of the affiliate, made several adjustments to the organizational structure to deal with problems that arose with the organization and had other issues to consider in 2002 related to staff and local community volunteers--the lifeblood of the organization. Furthermore, a national AHS task force was recommending a reorganization of the AHA along the same lines that Bowser had used for his Western States Affiliate. Bowser was not certain that the national center and other affiliates could learn and benefit from his model, which he had tailored for a particular staff and geographical territory. He wondered how and if the AHA could leverage his organizational model across disparate communities nationally and what the impact might be on the long-term viability of the AHA.
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