Harvard Case - Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City
"Neighborhood Conservation Services of Barberton: Responding to Change in the Magic City" Harvard business case study is written by Howard Husock, David Brown, Christine W. Letts. It deals with the challenges in the field of Strategy. The case study is 29 page(s) long and it was first published on : Nov 1, 2003
At Fern Fort University, we recommend Neighborhood Conservation Services of Barberton (NCS) pursue a strategic transformation focused on digital innovation and community engagement. This strategy involves a multi-pronged approach to address the challenges of declining membership, changing demographics, and evolving community needs.
2. Background
This case study explores the challenges faced by Neighborhood Conservation Services of Barberton (NCS), a non-profit organization dedicated to preserving the historic character of the city. NCS is facing declining membership, a changing demographic landscape, and a need to adapt to new community needs. The organization's current business model, heavily reliant on traditional membership and fundraising, is no longer sustainable.
The main protagonists of the case study are:
- David Miller: Executive Director of NCS, tasked with leading the organization through this period of change.
- Board of Directors: Responsible for overseeing NCS's strategic direction and financial stability.
- Community Members: The target audience for NCS's services and the driving force behind the organization's mission.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong community reputation and historical significance.
- Dedicated staff and volunteers passionate about Barberton's heritage.
- Existing infrastructure and resources for community outreach.
Weaknesses:
- Declining membership and fundraising revenue.
- Limited digital presence and outdated marketing strategies.
- Lack of diversity in membership and outreach efforts.
Opportunities:
- Growing interest in historic preservation and community engagement.
- Potential for new revenue streams through digital services and partnerships.
- Expanding outreach to diverse communities and younger demographics.
Threats:
- Competition from other non-profits and community organizations.
- Economic downturn impacting donations and membership.
- Changing demographics and evolving community needs.
Porter's Five Forces:
- Threat of New Entrants: Low, due to the specialized nature of NCS's services and the existing community network.
- Bargaining Power of Buyers: Moderate, as community members have alternatives for historical preservation and engagement.
- Bargaining Power of Suppliers: Low, as NCS relies on volunteers and partnerships with local businesses.
- Threat of Substitutes: Moderate, as alternative forms of community engagement and historic preservation exist.
- Rivalry Among Existing Competitors: Moderate, as NCS competes with other non-profits and organizations for funding and community support.
Value Chain Analysis:
NCS's value chain consists of:
- Inbound Logistics: Managing volunteer resources, fundraising efforts, and partnerships.
- Operations: Delivering programs and services related to historic preservation and community engagement.
- Outbound Logistics: Communicating with members, promoting events, and engaging with the community.
- Marketing and Sales: Building brand awareness, attracting new members, and securing funding.
- Service: Providing educational resources, organizing events, and supporting community initiatives.
Business Model Innovation:
NCS needs to explore new business models to address declining membership and changing community needs. This includes:
- Digital Transformation: Implementing a robust online platform for membership management, event registration, and community engagement.
- Diversification of Revenue Streams: Exploring partnerships, sponsorships, and alternative funding sources beyond traditional membership fees.
- Community-Based Partnerships: Collaborating with local businesses, schools, and other organizations to expand reach and create shared value.
Strategic Planning:
NCS needs to develop a comprehensive strategic plan that addresses the following:
- Mission and Vision: Redefining the organization's mission and vision to reflect evolving community needs and priorities.
- Target Audience: Identifying and segmenting target audiences to tailor outreach and engagement strategies.
- Value Proposition: Articulating a clear and compelling value proposition that resonates with diverse community members.
- Financial Sustainability: Developing a long-term financial plan that ensures the organization's stability and growth.
4. Recommendations
1. Digital Transformation:
- Develop a user-friendly website: Create a comprehensive online platform for membership management, event registration, online donations, and community engagement.
- Implement a digital marketing strategy: Utilize social media, email marketing, and search engine optimization to reach new audiences and promote NCS's services.
- Leverage technology for outreach: Utilize digital tools like virtual tours, online exhibits, and interactive maps to engage a wider audience.
2. Community Engagement and Outreach:
- Expand outreach to diverse communities: Target younger generations, minority groups, and new residents to diversify membership and broaden community support.
- Develop partnerships with local businesses and organizations: Collaborate with schools, libraries, and other community groups to offer joint programs and events.
- Create engaging community events: Organize interactive workshops, educational tours, and social gatherings to foster a sense of belonging and shared history.
3. Revenue Diversification:
- Explore grant opportunities: Apply for grants from local, state, and national organizations focused on historic preservation and community development.
- Develop corporate sponsorships: Partner with local businesses to secure funding and promote their brands through community events and initiatives.
- Offer specialized services: Provide consulting services to individuals and businesses interested in historic preservation and restoration.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations focus on leveraging NCS's existing strengths in community outreach and historical preservation while adapting to changing needs.
- External customers and internal clients: The recommendations address the needs of diverse community members, including younger generations, minority groups, and new residents.
- Competitors: The recommendations aim to differentiate NCS from competitors by emphasizing digital innovation, community engagement, and a broader value proposition.
- Attractiveness - quantitative measures: The recommendations are expected to increase membership, expand revenue streams, and enhance NCS's overall impact on the community.
6. Conclusion
NCS faces a critical juncture in its history. By embracing digital transformation, community engagement, and revenue diversification, the organization can adapt to changing times and ensure its long-term sustainability. This strategic transformation will require a commitment to innovation, collaboration, and a focus on creating shared value for the community.
7. Discussion
Alternatives not selected:
- Mergers and acquisitions: While mergers could provide access to resources and expertise, they might compromise NCS's independence and community focus.
- Outsourcing: Outsourcing some services could reduce costs, but it might also compromise quality and community engagement.
Risks and key assumptions:
- Digital literacy: The success of digital transformation depends on the community's access to technology and willingness to engage online.
- Funding sources: Securing grants and sponsorships requires a dedicated fundraising team and a compelling value proposition.
- Community engagement: Building strong community partnerships requires a collaborative approach and a commitment to inclusive outreach.
8. Next Steps
Timeline with key milestones:
- Year 1: Implement digital transformation strategy, launch new website, and expand online outreach.
- Year 2: Develop community partnerships, organize engaging events, and diversify revenue streams.
- Year 3: Evaluate progress, refine strategies, and ensure long-term sustainability.
By taking these steps, NCS can successfully navigate the challenges of a changing landscape and continue to play a vital role in preserving Barberton's heritage and fostering a vibrant community.
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Case Description
In the late 1990s, the leadership of Neighborhood Conservation Services (NCS) of Barberton, Ohio--a nonprofit housing rehabilitation organization founded two decades earlier to help reverse the decline of this aging industrial city--found its once popular mission had suddenly become politically controversial. The long unassailable idea of using public funds to target low-interest loans to lower-income homeowners was being questioned by elected officials in the city of 28,000, officials concerned that limiting loans to those of low-income--in conjunction with a concentration of public housing and rent subsidies--might make Barberton a "magnet" for low-income households. A mayor intent on reviving the city's tax base and attracting and retaining the middle class challenged NCS to demonstrate how its policies could help the city. This new political climate posed a difficult and crucial strategic challenge for the organization--which relied on funds voted by the City Council for the overwhelming majority of its budget. NCS, believed its leadership, would have to find ways to reconcile its mission with the new political climate in town or find a new way to fund its programs--or simply close up shop. This nonprofit management case is meant to allow for discussion of how organizational strategy should adapt to political change. In particular, it raises the question of the extent and nature of the obligation of those receiving public funds to defer to elected officials. The case can also be used in discussion of housing policy per se, to explore the question of when and where housing subsidies are appropriate. HKS Case Number 1707.0
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