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Harvard Case - Strategic Planning and Governance at Bridge Adult Service Centre: Where to Begin?

"Strategic Planning and Governance at Bridge Adult Service Centre: Where to Begin?" Harvard business case study is written by Gina Grandy, Rhian Stewart. It deals with the challenges in the field of Strategy. The case study is 22 page(s) long and it was first published on : Mar 1, 2012

At Fern Fort University, we recommend Bridge Adult Service Centre (BASC) embark on a strategic planning process that prioritizes innovation and business model transformation to address the evolving needs of the aging population and secure its long-term sustainability. This process should involve a comprehensive SWOT analysis, Porter's Five Forces analysis, and a value chain analysis to identify BASC's core competencies, competitive advantages, and opportunities for disruptive innovation.

2. Background

Bridge Adult Service Centre is a non-profit organization providing a range of services to the elderly in a rapidly changing demographic landscape. The case study highlights the organization's challenges in maintaining relevance and financial stability in the face of increasing competition and evolving client needs. BASC's current strategic planning process is fragmented and lacks a clear vision for the future.

The main protagonists of the case study are the Board of Directors, who are responsible for setting the strategic direction of the organization, and the Executive Director, who is tasked with implementing the board's vision.

3. Analysis of the Case Study

Strategic Analysis:

  • SWOT Analysis: BASC possesses strong core competencies in providing compassionate care and building strong community relationships. However, it faces significant weaknesses in terms of outdated infrastructure, limited financial resources, and a lack of technological expertise. Opportunities exist in expanding services to address the growing demand for specialized care, leveraging technology to enhance service delivery, and forging strategic partnerships with other organizations. Threats include increasing competition from for-profit providers, government funding cuts, and the changing demographics of the aging population.
  • Porter's Five Forces Analysis: The threat of new entrants is high due to the increasing demand for elder care services and the relatively low barriers to entry. The bargaining power of buyers is moderate, as clients have limited choices and are often reliant on BASC's services. The bargaining power of suppliers is low, as BASC sources its services from a diverse range of providers. The threat of substitutes is moderate, as alternative care options, such as home healthcare and assisted living facilities, are becoming increasingly available. The intensity of rivalry is high, as BASC competes with both for-profit and non-profit organizations for clients and resources.

Financial Analysis:

  • BASC's financial stability is precarious, with a limited endowment and reliance on government funding. The organization needs to explore new revenue streams and implement cost-cutting measures to ensure its long-term financial sustainability.

Marketing Analysis:

  • BASC's current marketing efforts are limited and fail to effectively reach its target audience. The organization needs to develop a comprehensive marketing strategy that leverages digital marketing and social media to reach a wider audience and differentiate its services.

Operational Analysis:

  • BASC's operations are inefficient and outdated. The organization needs to invest in technology and streamline its processes to improve service delivery and reduce costs.

Governance Analysis:

  • BASC's governance structure is fragmented and lacks clear accountability. The organization needs to strengthen its governance framework to ensure effective decision-making and oversight.

4. Recommendations

Strategic Planning:

  1. Develop a comprehensive strategic plan: This plan should outline BASC's mission, vision, values, and goals for the next 5-10 years. It should also include a detailed SWOT analysis, Porter's Five Forces analysis, and a value chain analysis to identify key opportunities and threats.
  2. Embrace a business model innovation approach: BASC should explore new ways to deliver its services, leveraging technology and partnerships to create a more sustainable and scalable model. This could include expanding into new service areas, developing new products and services, or partnering with other organizations to offer a wider range of services.
  3. Implement a balanced scorecard approach to track progress: This will help BASC monitor its progress towards achieving its strategic goals and ensure that all stakeholders are aligned.
  4. Engage in scenario planning to prepare for future uncertainties: This will help BASC identify potential risks and opportunities and develop contingency plans to address them.

Financial Sustainability:

  1. Diversify revenue streams: This could include exploring new funding sources, such as private donations, corporate sponsorships, and social impact investments.
  2. Implement cost-cutting measures: This could involve streamlining operations, negotiating better prices with suppliers, and reducing administrative expenses.

Marketing and Communication:

  1. Develop a comprehensive marketing strategy: This should include a clear target audience, a compelling value proposition, and a mix of marketing channels to reach potential clients.
  2. Leverage digital marketing and social media: This will help BASC reach a wider audience and build relationships with potential clients.
  3. Develop a strong brand identity: This will help BASC differentiate itself from competitors and build trust with clients.

Operations and Technology:

  1. Invest in technology to improve service delivery: This could include implementing new software solutions, upgrading infrastructure, and training staff on new technologies.
  2. Streamline operations: This could involve automating processes, improving communication, and implementing lean management principles.

Governance and Leadership:

  1. Strengthen governance framework: This could include revising the board's charter, establishing clear accountability mechanisms, and ensuring that the board has the necessary expertise to guide the organization.
  2. Develop a strong leadership team: This team should be passionate about BASC's mission and have the skills and experience to lead the organization through a period of change.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core competencies and consistency with mission: The recommendations focus on leveraging BASC's core competencies in compassionate care and community relationships while aligning with its mission to serve the elderly.
  2. External customers and internal clients: The recommendations address the needs of both external customers (seniors and their families) and internal clients (staff and volunteers).
  3. Competitors: The recommendations aim to differentiate BASC from competitors by focusing on innovation, technology, and service quality.
  4. Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): The recommendations are designed to improve BASC's financial sustainability by increasing revenue, reducing costs, and improving efficiency.

6. Conclusion

By embracing a strategic planning process that prioritizes innovation, business model transformation, and financial sustainability, BASC can secure its long-term future and continue to provide valuable services to the aging population.

7. Discussion

Alternatives:

  • Mergers and acquisitions: BASC could consider merging with or acquiring another organization to expand its reach and resources. However, this would require careful due diligence and integration planning.
  • Outsourcing: BASC could outsource some of its services to reduce costs and focus on its core competencies. However, this could lead to a loss of control and potentially impact service quality.

Risks and Key Assumptions:

  • Funding uncertainty: The recommendations assume that BASC will be able to secure adequate funding to implement its strategic plan.
  • Competition: The recommendations assume that BASC can effectively compete with other organizations in the elder care market.
  • Technology adoption: The recommendations assume that BASC will be able to successfully adopt new technologies to improve service delivery.

Options Grid:

OptionProsConsRiskAssumptions
Business Model InnovationIncreased revenue, improved efficiency, enhanced service deliveryRequires significant investment, potential for disruptionTechnology adoption, market acceptanceBASC can successfully develop and implement a new business model
Mergers and AcquisitionsExpanded reach, increased resourcesPotential for cultural clashes, integration challengesDue diligence, successful integrationBASC can find a suitable partner and successfully integrate the organizations
OutsourcingReduced costs, focus on core competenciesLoss of control, potential impact on service qualitySupplier reliability, quality controlBASC can find reliable suppliers and maintain service quality

8. Next Steps

  1. Establish a strategic planning team: This team should include representatives from the board, management, staff, and volunteers.
  2. Conduct a comprehensive SWOT analysis: This analysis should identify BASC's strengths, weaknesses, opportunities, and threats.
  3. Develop a strategic plan: This plan should outline BASC's mission, vision, values, and goals for the next 5-10 years.
  4. Implement the strategic plan: This will involve allocating resources, developing action plans, and monitoring progress.

By taking these steps, BASC can begin to transform itself into a more innovative, sustainable, and client-centric organization.

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Case Description

Susan Thibodeau, Executive Director of Bridge Adult Service Centre, contemplated how Bridge Adult could provide additional services and improved programming to current and new clients. Bridge Adult was a not-for-profit organization that aimed to enhance the lives and promote inclusion of intellectually challenged individuals in communities. There were 27 other service centres similar to Bridge Adult located throughout Nova Scotia, Canada. Funding from government sources remained relatively stagnant over the years but demand and programming needs had changed significantly in most of these centres. In order for Bridge Adult to continue to improve their current client offerings, programs that generated revenue while simultaneously provided meaningful experiences for clients were essential. Thibodeau, in collaboration with the Board, needed to determine strategic priorities for the next three years, her role in that process and who would be responsible for the various aspects of the implementation. This case was formulated for university undergraduate students in their fourth year of study or graduate students in a MBA program. It is intended to challenge students to consider the similarities and differences in strategy formulation and implementation and governance between for-profit and not-for-profit organizations. It should therefore be taught as a corporate governance or strategic planning case and ideally after students have been exposed to financial analysis, competitive analysis, value chain analysis, governance, SWOT analysis, and growth strategies.

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