Case Study Harlem Children's Zone
Strategic Analysis:
Harlem Children’s Zone
Mark Simpson
November 13, 2014
“What should we do to transform our neighbourhoods?”
Overall Assignment Question
In response to "A New Opportunity" (last page of the case):
What would you do if you were Canada, and why?
Use the questions below to frame your answer.
1. Utilizing the Ansoff Matrix how would you describe the most viable option for HCZ? Use an opening sentence and then use no more than 5 points to support.
Harlem Children’s Zone relies on their quantifiable impact in the Harlem community to measure their success and continue to receive the grants and contributions they currently receive. Therefore although their current strategy is for market expansion, it would better suit them to continue honing their current services to increase the quality of their results. Currently it was noted that 95% of their middle school students were behind in both reading and math skills. If …show more content…
issues such as this remain unreconciled than it is likely that their funding will be withdrawn and they will have to find new revenue streams to pay for their increasing program expenses. Thus a market penetration strategy is recommended. Here are some reasons why: To secure funding:
HCZ is relying heavily on grants and contributions to supplement their lofty market and product expansions.
A large portion of these grants however are based on quantifiable results, ie: higher graduation rates, increased test scores, etc. Therefore to continue receiving the main source of their revenue they will need to continue to improve in these areas.
To increase staff satisfaction:
The consensus from staff is that a rift is forming where bureaucracy has wedged itself. Since acquiring three new funding opportunities in 2000 (EMCF, TRHF and TPF), HCZ is now required to provide specific data on their youth as it’s requested. The net effect has been disgruntled staff feeling disconnected from their work. Market penetration will require a reworking of current processes to improve the quality of guidance from their staff.
To increase effectiveness of their current services:
HCZ’s market offering is already vast consisting of nine different programs providing aid in areas such
as:
i) Early childhood development ii) Physical health and nutrition iii) Resident Management iv) Employment and Technology services
v) Conflict Prevention vi) Sports and leisure activities vii) Foster Care Prevention
With such a variety of services it is more justifiable to continue to increase the success of these programs before increasing their reach.
To refocus on their current mission:
As a non-profit organization driven by social change, HCZ should recall their core purpose—which is to improve the quality of life for the citizens of Harlem, with a specific emphasis on the youth. As current directors are showing concerns regarding the organization’s focus shifting from quality to statistic-fulfillment, there is potential that HCZ should consider how they want to achieve their goals.
2. What is the perceived benefit of placing Peacemakers in another school, outside of the district? Use a pro cons table, or the alternative analysis table from the case template to frame your answer.
Pros:
i) Public schools are funded by the state which means more potential funding for their programs ii) Success could allow for implementation state or nationwide iii) Recognition could bring focus to HCZ’s other programs thereby increasing interest for them to be implemented elsewhere iv) Success in the worst performing district would drive a new approach which should help reframe the way HCZ caters to Harlem
v) Working within public schools allows for a direct forum for reaching children
Cons:
i) Distance from Harlem neighbourhood may prevent adequate control ii) Currently amidst major restructuring, and may not have available resources to properly implement public schools iii) Peacemaker’s may not be adequately trained to handle a more intense environment
From this analysis, the pros outweigh the cons in both quantity and quality. By implementing HCZ’s Peacemakers program they will secure stable public funding, provide potential for major growth, and create a direct connection with students. The concerns regarding this change are minimal and speculative at best. The distance although outside their current zone is still only measured in “blocks”, the Peacemaker’s program has proved itself since its inception in 1996 (meaning it can hold its own through HCZ’s ongoing changes) and the environment although worse, is most likely comparable to that which they’ve already grown accustomed to.
Operating within local public schools will allow HCZ a forum to show the country their systems work, and that they can be implemented elsewhere. This allows HCZ their foot in the door with a scalable opportunity that could provide recognition and awareness on a respectable platform.
3. In the corporate world, financial measures are used to evaluate success. The production of money (profit) equals greatness. In the non-profit world, organizations use money to achieve greatness (metrics and impact):
How would Peacemakers impact HCZ 's metrics? (Exhibit 7 of case)
Peacemakers
-Reduced aggression
-Increased attendance
-Improved problem-solving, math and reading skills
-Improved overall grades
-Improved self-image
-Reduction in number of reports filed regarding violence
-Increase on attendance sheets
-Improved test scores (for skill-related tests)
-Increase in avg. report card grade
-Increased participation in group activities
-increased social behaviour
Please use metrics (measurements1) in the case as a baseline. If there other metrics you think that would be a good evolution of existing metrics please add those as well - do not substitute your metrics for the case metrics. Your metrics can be added. If you are going to take-away an HCZ metric, then you must explain why clearly.
4. Would Peacemakers be a good answer to the scale question that was posed in page 1 of the case?
As HCZ grows, they will require more front line employees who are able to report the tangential measurements which report cards cannot. Unfortunately the major issues that plague Harlem stem from the home environment which many of the children grow up coping with. Neglect and abuse are central to many of the issues facing these children, and often need to be addressed before any true progress can be made in the classroom. By introducing Peacemakers they provide students with the means to discover alternative methods to dealing with home and classroom conflicts, violence and drug concerns, social disruptions and other forces acting on the child’s ability to succeed. These vital changes are only able to be measured by introducing someone who has quality, one-on-one interactions who can report on the matter. Peacemakers provide this measurement tool. Once implemented, data can be recorded and thus provide a benchmark for the project to be scaled from.
5. Utilizing the handouts from class (will be dealt with in-class on November 6th) please outline your Change Management plan. Change Management is a core concept in mergers, acquisitions and any activity a business takes on to improve their operations and grow revenues.
Principle
Yes
No
1.
Address the “human side” systematically
X
2.
Start at the top
X
3.
Involve every layer
X
4.
Make the formal case
X
5.
Create ownership
X
6.
Communicate the message
X
7.
Assess the cultural landscape
X
8.
Address culture explicitly
X
9.
Prepare for the unexpected
X
10.
Speak to the individual
X
1. Address the “human side” systematically
When Canada comments saying “I know how you feel and I’m sorry. We will make you feel better later. But now you’ve got to do this” with regards to his directors and their implementation of several changes, it shows his inability to provide for their needs. Although the statement is apologetic, he is relying on his rapport with his directors to supersede his inability to provide actual relief for them.
2. Involve every layer
This was complicated for Canada since part of his change management plan involved introducing new senior program directors. This meant not only did he need to ensure every layer of his organization was attended to, but that he brought any new staff up to speed as well to ensure a consistent message throughout.
3. Communicate the message
Although the case doesn’t mention specifics as to the degree of formality Canada used when introducing his business plan, it can be noted that there was definitely a lack of understanding in the message and its effects. Throughout the case quotes are read regarding a lack of understanding such as “we now have savvy quantification people on making funders happy” (about the new corporate cabinet) and “we became a lab for all of our funders research. And we could not say ‘no.’” These points help illustrate the lack of understanding HCZ’s staff held throughout the implementation process.
4. Prepare for the unexpected
Although it isn’t noted whether Canada had some form of contingency or risk assessment made for the change, what is observed is his inability to cope with his new funder’s requests. As data requests become increasingly intrusive for many of HCZ’s staff, it’s obvious there was a poor assessment on Canada’s behalf to understanding some of the periphery changes he didn’t anticipate.
5. Speak to the individual
From the quote discussed above regarding Canada’s apology to his staff, it can be noted that although there was a disconnect in the overall message and implications of the change, Canada possessed the ability to “rally the troops” (as one director said) suggesting he would understand the necessity to connect with each employee.
Besides the basic business issues, there is a core theme in the case of change management.
6. Based on your general knowledge, and the information in the case, is running a non-profit the same as running a for-profit? Please use three points from the case to support your answer.
Although differences exist for nonprofits with the most obvious being that additional revenues are absorbed back into the company (Wikipedia) rather than being distributed to CEO’s and stakeholders, the overall operation is run very similar to a for profit one. Most considerably:
1) The bottom line still matters
At the end of the day running a nonprofit is still reliant on its ability to produce some form of a surplus. If HCZ were to produce a deficit year after year, eventually it will lead to the organization unable to pay its expenses and fall into bankruptcy.
2) The quality of your product or service has a direct connection to your revenue.
Even if the goal is to solve a social issue, doing it well is still a major concern. Since HCZ’s funding is mostly derived from grants, ensuring their service is effective is key to securing a continuation of those grants into their pockets for the future. If HCZ’s service begins ceasing to produce results, then eventually the foundations will forfeit their donations.
3) Capturing the market still operates on the same principles.
Deciding how HCZ will grow is identical to that of a for-profit. Whether they decide to branch out to increase their reach and market size, or increase the number of services they offer to capture a larger percentage of market share, strategizing growth is conditional on the same principles of that as a for-profit. If for example, HCZ decides to expand their market before ensuring their operations can handle the growth, they will fall victim to the same factors had they been selling a product (potentially wasted expenses and a negligible profit margin).
7. Businesses usually pilot or try new initiatives to grow market share, sales, etc. Charities will chase various funding envelopes to gain revenue as a way to possibly launch new programs and services. Is there a danger in this? What did you learn from the HCZ about this? Please utilize case info.
The danger is similar to that of a B2B company with few customers and large purchases; the fewer customers buying your product, the more control they have over your business. HCZ discovered this when they gained three grants in 2000 which nearly quadrupled their public support stream. The result was a major change in data collection which ended up introducing inefficient processes, lowering employee morale and removing quality interaction time between the directors and their students/clients.
Works Cited
"Nonprofit Organization." Wikipedia. Wikimedia Foundation, 11 Nov. 2014. Web. 12 Nov. 2014. .
Harlem Children’s Zone
Mark Simpson
November 13, 2014
“What should we do to transform our neighbourhoods?”
Overall Assignment Question
In response to "A New Opportunity" (last page of the case):
What would you do if you were Canada, and why?
Use the questions below to frame your answer.
1. Utilizing the Ansoff Matrix how would you describe the most viable option for HCZ? Use an opening sentence and then use no more than 5 points to support.
Harlem Children’s Zone relies on their quantifiable impact in the Harlem community to measure their success and continue to receive the grants and contributions they currently receive. Therefore although their current strategy is for market expansion, it would better suit them to continue honing their current services to increase the quality of their results. Currently it was noted that 95% of their middle school students were behind in both reading and math skills. If …show more content…
issues such as this remain unreconciled than it is likely that their funding will be withdrawn and they will have to find new revenue streams to pay for their increasing program expenses. Thus a market penetration strategy is recommended. Here are some reasons why: To secure funding:
HCZ is relying heavily on grants and contributions to supplement their lofty market and product expansions.
A large portion of these grants however are based on quantifiable results, ie: higher graduation rates, increased test scores, etc. Therefore to continue receiving the main source of their revenue they will need to continue to improve in these areas.
To increase staff satisfaction:
The consensus from staff is that a rift is forming where bureaucracy has wedged itself. Since acquiring three new funding opportunities in 2000 (EMCF, TRHF and TPF), HCZ is now required to provide specific data on their youth as it’s requested. The net effect has been disgruntled staff feeling disconnected from their work. Market penetration will require a reworking of current processes to improve the quality of guidance from their staff.
To increase effectiveness of their current services:
HCZ’s market offering is already vast consisting of nine different programs providing aid in areas such
as:
i) Early childhood development ii) Physical health and nutrition iii) Resident Management iv) Employment and Technology services
v) Conflict Prevention vi) Sports and leisure activities vii) Foster Care Prevention
With such a variety of services it is more justifiable to continue to increase the success of these programs before increasing their reach.
To refocus on their current mission:
As a non-profit organization driven by social change, HCZ should recall their core purpose—which is to improve the quality of life for the citizens of Harlem, with a specific emphasis on the youth. As current directors are showing concerns regarding the organization’s focus shifting from quality to statistic-fulfillment, there is potential that HCZ should consider how they want to achieve their goals.
2. What is the perceived benefit of placing Peacemakers in another school, outside of the district? Use a pro cons table, or the alternative analysis table from the case template to frame your answer.
Pros:
i) Public schools are funded by the state which means more potential funding for their programs ii) Success could allow for implementation state or nationwide iii) Recognition could bring focus to HCZ’s other programs thereby increasing interest for them to be implemented elsewhere iv) Success in the worst performing district would drive a new approach which should help reframe the way HCZ caters to Harlem
v) Working within public schools allows for a direct forum for reaching children
Cons:
i) Distance from Harlem neighbourhood may prevent adequate control ii) Currently amidst major restructuring, and may not have available resources to properly implement public schools iii) Peacemaker’s may not be adequately trained to handle a more intense environment
From this analysis, the pros outweigh the cons in both quantity and quality. By implementing HCZ’s Peacemakers program they will secure stable public funding, provide potential for major growth, and create a direct connection with students. The concerns regarding this change are minimal and speculative at best. The distance although outside their current zone is still only measured in “blocks”, the Peacemaker’s program has proved itself since its inception in 1996 (meaning it can hold its own through HCZ’s ongoing changes) and the environment although worse, is most likely comparable to that which they’ve already grown accustomed to.
Operating within local public schools will allow HCZ a forum to show the country their systems work, and that they can be implemented elsewhere. This allows HCZ their foot in the door with a scalable opportunity that could provide recognition and awareness on a respectable platform.
3. In the corporate world, financial measures are used to evaluate success. The production of money (profit) equals greatness. In the non-profit world, organizations use money to achieve greatness (metrics and impact):
How would Peacemakers impact HCZ 's metrics? (Exhibit 7 of case)
Peacemakers
-Reduced aggression
-Increased attendance
-Improved problem-solving, math and reading skills
-Improved overall grades
-Improved self-image
-Reduction in number of reports filed regarding violence
-Increase on attendance sheets
-Improved test scores (for skill-related tests)
-Increase in avg. report card grade
-Increased participation in group activities
-increased social behaviour
Please use metrics (measurements1) in the case as a baseline. If there other metrics you think that would be a good evolution of existing metrics please add those as well - do not substitute your metrics for the case metrics. Your metrics can be added. If you are going to take-away an HCZ metric, then you must explain why clearly.
4. Would Peacemakers be a good answer to the scale question that was posed in page 1 of the case?
As HCZ grows, they will require more front line employees who are able to report the tangential measurements which report cards cannot. Unfortunately the major issues that plague Harlem stem from the home environment which many of the children grow up coping with. Neglect and abuse are central to many of the issues facing these children, and often need to be addressed before any true progress can be made in the classroom. By introducing Peacemakers they provide students with the means to discover alternative methods to dealing with home and classroom conflicts, violence and drug concerns, social disruptions and other forces acting on the child’s ability to succeed. These vital changes are only able to be measured by introducing someone who has quality, one-on-one interactions who can report on the matter. Peacemakers provide this measurement tool. Once implemented, data can be recorded and thus provide a benchmark for the project to be scaled from.
5. Utilizing the handouts from class (will be dealt with in-class on November 6th) please outline your Change Management plan. Change Management is a core concept in mergers, acquisitions and any activity a business takes on to improve their operations and grow revenues.
Principle
Yes
No
1.
Address the “human side” systematically
X
2.
Start at the top
X
3.
Involve every layer
X
4.
Make the formal case
X
5.
Create ownership
X
6.
Communicate the message
X
7.
Assess the cultural landscape
X
8.
Address culture explicitly
X
9.
Prepare for the unexpected
X
10.
Speak to the individual
X
1. Address the “human side” systematically
When Canada comments saying “I know how you feel and I’m sorry. We will make you feel better later. But now you’ve got to do this” with regards to his directors and their implementation of several changes, it shows his inability to provide for their needs. Although the statement is apologetic, he is relying on his rapport with his directors to supersede his inability to provide actual relief for them.
2. Involve every layer
This was complicated for Canada since part of his change management plan involved introducing new senior program directors. This meant not only did he need to ensure every layer of his organization was attended to, but that he brought any new staff up to speed as well to ensure a consistent message throughout.
3. Communicate the message
Although the case doesn’t mention specifics as to the degree of formality Canada used when introducing his business plan, it can be noted that there was definitely a lack of understanding in the message and its effects. Throughout the case quotes are read regarding a lack of understanding such as “we now have savvy quantification people on making funders happy” (about the new corporate cabinet) and “we became a lab for all of our funders research. And we could not say ‘no.’” These points help illustrate the lack of understanding HCZ’s staff held throughout the implementation process.
4. Prepare for the unexpected
Although it isn’t noted whether Canada had some form of contingency or risk assessment made for the change, what is observed is his inability to cope with his new funder’s requests. As data requests become increasingly intrusive for many of HCZ’s staff, it’s obvious there was a poor assessment on Canada’s behalf to understanding some of the periphery changes he didn’t anticipate.
5. Speak to the individual
From the quote discussed above regarding Canada’s apology to his staff, it can be noted that although there was a disconnect in the overall message and implications of the change, Canada possessed the ability to “rally the troops” (as one director said) suggesting he would understand the necessity to connect with each employee.
Besides the basic business issues, there is a core theme in the case of change management.
6. Based on your general knowledge, and the information in the case, is running a non-profit the same as running a for-profit? Please use three points from the case to support your answer.
Although differences exist for nonprofits with the most obvious being that additional revenues are absorbed back into the company (Wikipedia) rather than being distributed to CEO’s and stakeholders, the overall operation is run very similar to a for profit one. Most considerably:
1) The bottom line still matters
At the end of the day running a nonprofit is still reliant on its ability to produce some form of a surplus. If HCZ were to produce a deficit year after year, eventually it will lead to the organization unable to pay its expenses and fall into bankruptcy.
2) The quality of your product or service has a direct connection to your revenue.
Even if the goal is to solve a social issue, doing it well is still a major concern. Since HCZ’s funding is mostly derived from grants, ensuring their service is effective is key to securing a continuation of those grants into their pockets for the future. If HCZ’s service begins ceasing to produce results, then eventually the foundations will forfeit their donations.
3) Capturing the market still operates on the same principles.
Deciding how HCZ will grow is identical to that of a for-profit. Whether they decide to branch out to increase their reach and market size, or increase the number of services they offer to capture a larger percentage of market share, strategizing growth is conditional on the same principles of that as a for-profit. If for example, HCZ decides to expand their market before ensuring their operations can handle the growth, they will fall victim to the same factors had they been selling a product (potentially wasted expenses and a negligible profit margin).
7. Businesses usually pilot or try new initiatives to grow market share, sales, etc. Charities will chase various funding envelopes to gain revenue as a way to possibly launch new programs and services. Is there a danger in this? What did you learn from the HCZ about this? Please utilize case info.
The danger is similar to that of a B2B company with few customers and large purchases; the fewer customers buying your product, the more control they have over your business. HCZ discovered this when they gained three grants in 2000 which nearly quadrupled their public support stream. The result was a major change in data collection which ended up introducing inefficient processes, lowering employee morale and removing quality interaction time between the directors and their students/clients.
Works Cited
"Nonprofit Organization." Wikipedia. Wikimedia Foundation, 11 Nov. 2014. Web. 12 Nov. 2014. .