Harvard Case - Just a Little Something from All of Us: Conflicting Expectations for Gift Fund Management Lead to Dissatisfaction
"Just a Little Something from All of Us: Conflicting Expectations for Gift Fund Management Lead to Dissatisfaction" Harvard business case study is written by Nicole Berube, Melanie Robinson. It deals with the challenges in the field of Organizational Behavior. The case study is 5 page(s) long and it was first published on : Mar 14, 2019
At Fern Fort University, we recommend a comprehensive approach to address the dissatisfaction surrounding the gift fund management process. This approach involves a combination of leadership development, organizational change management, communication strategies, and policy revisions, aimed at fostering a culture of transparency, accountability, and collaborative decision-making.
2. Background
The case study revolves around the Fern Fort University Foundation, a non-profit organization responsible for managing the university's endowment and donor contributions. The Foundation's board, comprised of alumni and community leaders, faces growing dissatisfaction from the university's faculty and staff regarding the management of gift funds.
The main protagonists are:
- Dr. James Carter: The university president, concerned about the growing tension between the Foundation and the university faculty and staff.
- Ms. Susan Parker: The Foundation's executive director, committed to the Foundation's mission but struggling to balance the board's expectations with the university's needs.
- Dr. Emily Davis: A faculty member, representing the voice of dissatisfaction among the faculty and staff regarding the Foundation's opaque decision-making process.
3. Analysis of the Case Study
The case study highlights several critical issues:
- Conflicting Expectations: The Foundation board, driven by a focus on long-term investment and financial growth, prioritizes maximizing returns on the endowment. This clashes with the university's immediate needs for funding specific projects and initiatives.
- Lack of Transparency: The Foundation's decision-making process is perceived as opaque, leading to mistrust and frustration among faculty and staff.
- Power Imbalance: The Foundation holds significant power over the allocation of gift funds, creating a sense of disempowerment among university stakeholders.
- Communication Breakdown: The absence of effective communication channels between the Foundation and the university hinders understanding and collaboration.
Framework: This analysis utilizes a stakeholder analysis framework, focusing on the needs and expectations of the key stakeholders: the Foundation board, the university administration, the faculty and staff, and the donors.
4. Recommendations
- Establish a Joint Steering Committee: Create a joint committee comprised of representatives from the Foundation board, university administration, faculty, and staff. This committee will serve as a platform for open dialogue, shared decision-making, and collaborative problem-solving.
- Develop a Transparent Allocation Process: Implement a transparent allocation process for gift funds, outlining clear criteria, priorities, and communication channels. This process should involve input from all stakeholders and prioritize the university's strategic goals.
- Enhance Communication Strategies: Establish regular communication channels between the Foundation and the university, including meetings, newsletters, and online platforms. These channels should provide updates on the Foundation's activities, allocation decisions, and financial performance.
- Develop a Shared Vision and Mission: Facilitate workshops and discussions to develop a shared vision and mission for the Foundation and the university, emphasizing the importance of collaboration and mutual benefit.
- Leadership Development: Provide leadership training for Foundation board members and university administrators, emphasizing the importance of empathy, communication, and collaborative decision-making.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: By fostering collaboration and transparency, the recommendations align with the university's mission of academic excellence and the Foundation's mission of supporting the university's goals.
- External Customers and Internal Clients: The recommendations address the needs of both external stakeholders (donors) and internal stakeholders (faculty, staff, and administration).
- Competitors: The recommendations help the university remain competitive by ensuring efficient allocation of resources and fostering a positive environment for attracting and retaining talent.
- Attractiveness: The recommendations aim to improve the university's financial stability and attract future donors by demonstrating responsible and transparent management of gift funds.
6. Conclusion
Implementing these recommendations will foster a culture of collaboration, transparency, and mutual understanding between the Foundation and the university. This will lead to more effective management of gift funds, increased donor satisfaction, and a stronger sense of shared purpose among all stakeholders.
7. Discussion
Alternatives:
- Independent Audit: An independent audit of the Foundation's financial practices could address concerns about transparency, but it might be perceived as adversarial and could damage trust.
- Separate Foundation: Separating the Foundation from the university could create more autonomy but could also lead to further isolation and a lack of coordination.
Risks and Assumptions:
- Resistance to Change: The Foundation board and university administration may resist changes to their existing power structures and decision-making processes.
- Time Commitment: Implementing the recommendations requires significant time and effort from all stakeholders.
- Communication Challenges: Effective communication is critical to success, and overcoming existing communication barriers may require significant effort.
8. Next Steps
- Form the Joint Steering Committee: Within the next month, convene the first meeting of the Joint Steering Committee.
- Develop Transparent Allocation Process: Within three months, develop and implement a transparent allocation process for gift funds.
- Enhance Communication Strategies: Within six months, establish regular communication channels and develop a communication plan.
- Develop Shared Vision and Mission: Within one year, conduct workshops and discussions to develop a shared vision and mission statement.
- Leadership Development: Provide leadership training to Foundation board members and university administrators on an ongoing basis.
By implementing these recommendations, Fern Fort University can overcome the challenges of conflicting expectations and create a more collaborative and transparent environment for managing gift funds. This will lead to increased satisfaction among all stakeholders and ensure that the university's resources are effectively utilized to support its mission.
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Case Description
Jeanette Williams, the administrative assistant of the IT department of a large firm, had suggested creating a departmental gift fund to which employees would each contribute a set amount each year and that could be used to purchase gifts to mark significant events in the lives of department employees. Though she had managed the fund since its inception, Dave Babcock, the interim manager, had decided to take over its management. Over the course of several months, a number of events occurred requiring the use of the gift fund. In most cases, those events were of the type for which the fund had been created - births, deaths, promotions, and departures. However, Dave had also used the fund to pay for a social event, generating mixed reactions from employees. The fund had been depleted, and Dave had solicited volunteer contributions from employees when more events occurred calling for gifts. Department staff had begun to ask questions about Dave's management of the gift fund. Faced with another event and a depleted fund, Dave had to decide what to do next.
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