Pioneer Human Services

Pioneer Human Services

Part B of the Organizational Analysis Paper
HSP 435
Jen McGhee, Alda Sarmiento, Andrea Northey & Olivia Cozzetto

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Introduction
In 1963, Jack Dalton left the penal system and bought a small home in Seattle and
founded what would later become Pioneer Human Services (PHS), a 501 (c) 3 statewide program
dedicated to helping individuals who by many societal standards were hopeless. Since then PHS
has grown and diversified to meet the needs of individuals suffering from a variety of ailments,
whether it be transitioning an individual from prison with mental illness to independent living, or
giving an individual a chance to find employment through training and job development (Our
Story, 2014, para. 1). PHS provides an integrated array of services including treatment, housing,
reentry, training and employment services (What Makes Us Different, 2014). PHS has grown
to become a stable and mature organization within the state, Worth (2014) author of Nonprofit
Management: Principles and Practice states when an organization can produce and sustain itself,
its reached stage 4 within the life stage of nonprofits (p.191). For over 50 years, this statewide
non-profit organization has had a positive effect in the lives of clients and continues to make a
difference in the community.

Geographic Area and Demographics

As stated previously, PHS is an agency only located in Washington state. Geographically,
the location of where a person may live, work, or travel can affect an individuals access to such
resources (Worth, 2014, p. 246). Luckily, within the past few decades, PHS has been growing
and developing into a proud leading organization with the mission of giving people a chance for
change so they can, in turn, contribute to stronger, healthier communities (Our Story, 2014,

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para. 2). In their advancement of services, they have also expanded in location. Today PHS has
become a successful nonprofit that operates:
A broad range of programs in nearly 60 locations[and] helps people reentering society
from prison or jail as well as those who are overcoming chemical addiction and mental
illness, and is the only organization in the state to offer a fully integrated array of
housing, employment, training, reentry and treatment services (About Us, 2014, para.
1).
PHS serves a population who are in need of outdoing their negative lifestyle to improve their
chance at living a more meaningful and healthy life.
For examples using demographic variables, such as age, gender, and income (Worth,
2014, p. 246), statistics will be used to highlight PHS results with differing populations. To
demonstrate the geographic area that PHS attends to, among the 2,900 people it serves on any
given day in all locations across Washington, 409 adults struggling with chemical dependency or
mental illness attend counseling sessions, 60 families focus on family preservation and
reconciliation using intensive in-home counseling, 89 veterans are housed, 10 juvenile offenders
engage in a program that builds their skills, and many more which illustrates the gravity of
PHSs influence on bettering society (Pioneer Human Services, 2013b). For more details about
their clientele and services, please refer to Appendix A. With these statistics, it reveals their
openness to diverse populations such as differing age groups, occupations, and family dynamics.
In terms of gender, however, it is shown in Appendix B that about three fourths of the population
they serve are male and a quarter are female (Pioneer Human Services, 2013b). When put into
the perspective of race and ethnicity, over half of Pioneers clients are Caucasian, African
Americans are the second highest in representation, and whats left is the remaining 22%,

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symbolizing Alaskan Native or American Indian, Hispanic, Asian/Pacific Islander, and other
(Pioneer Human Services, 2013b). In relaying those demographics, it indicates Pioneers
experience with a medley of people. This demonstrates that even within one state, an agency is
capable of reaching an assortment of clientele to provide their services to.

SWOT Analysis
While understanding the geographic area and demography is important, its essential to
understand a SWOT analysis of PHS to truly view the organization as a management function. In
order to understand the complexity and to bring strategic change to a non-profit agency, a SWOT
analysis can be used to identify the strengths, weaknesses, opportunities and threats brought on
by internal and external forces of the organization. Worth (2014) describes the SWOT analysis
as a way to develop a comparison between the organizations own strengths and weaknesses
and the opportunities and threats facing it in the external environment, in order to identify
strategic issues that need to be addressed (p. 167). The following table evaluates the agencys
strengths, weaknesses, opportunities and threats:

Strengths

Weaknesses

Financially diverse
Long history and good reputation in
state/communities
Great staff support (benefits, education
opportunities, fair care)
Successful internal businesses
Client to employee opportunities
Continual and unbiased client care
Partnership with Boeing and other larger
corporations

Little to no fundraising or grant writing

Many levels of the Chain of Command
which makes issues hard to get approved in
a timely manner
Marketing about services is low (Unknown
by many)

Opportunities

Threats

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Largest recovery organization in WA state

Able to serve clients in a variety of ways in
many locations statewide
Receiving support from other organizations
due to their reputation
Government funding from legalization of
marijuana (48% of revenue from sales is
supposed to go to behavioral health)

Partnering with other organizations (causes

issues due to having different missions)
Political issues and decisions that dont
support social services

Internal Forces
PHS internal structure is rather typical with regards to management style and power
hierarchy. As stated by Sommers, Mauldin, and Levin (2000), the:
president [CEO] of the organization answers to a Board of Trustees [BOD], whose role
is mainly financial oversight, confirmation of policy decisions, and ensuring that
management does its job. PHS also has a Board of Governors, which meets infrequently
and provides advice and counsel to the agency president as needed. The president in turn
oversees the operations of the agency, and represents PHS to the outside community (p.
14).
It appears that the Board of Trustees and Board of Governors overshadow the whole organization
while the president utilizes their leadership to keep structure within the agency. As this
organization expands across Washington State, there are different internal structures within each
division, and the five operating groups who decide on everyday decisions for the company; these
five operating groups encompass the organizations nearly 900 employees, and all answer in
some way to the CEO and Board of Directors (Sommers, Mauldin, Levin, 2000, p. 14).
According to Assistant Manager Dennis Whelan in the Whatcom Detox Center, some
[individuals] are in charge of entire programs such as chemical dependency, while others are
managers within a single location. [We] need all these people in order to run the company on

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different scales, (D. Whelan, personal communication, October 31, 2014). When looking at
PHS website, board members appear to come from a variety of fields--including but not limited
to Department of Corrections, financial consultations, and private industries--but all with the
same goal to help individuals achieve the chance for change (D. Whelan, personal
communication, October 31, 2014; Board & leadership, 2014). For visuals, an example on
Appendix D further demonstrates PHS organizational structure (Keck, Bryant, Fisher, &
Hathaway, 2013). When examined closely, one can see the roles transform from Board of
Directors and CEO to vice president of each division, program directors, assistant directors,
managers and assistant managers. With this, the overall management with PHS is established to
maintain basic structure that can been seen in many traditional nonprofits.
Moreover, it should be noted that since PHS is such a large organization, managing every
branch or division can prove to be challenging; as noted in the interview with Whelan, there are
too many managers that, when an issue does arise, each has to approve it as it flows up the chain
of command (D. Whelan, personal communication, October 31, 2014). This chain of command
stems upward to the current CEO, Karen Lee; with 20 plus years of experience in senior
management, she was named CEO in 2010 (PRNewswire, 2010). It is the CEO who leads the
organization. Worth (2014) states Many nonprofit boards include leaders from the business
community, who may sometimes find it attractive to direct the organization toward activities that
are financially lucrative but that may distract from its primary mission so the CEO is able to use
this mission to shield against these pressures and keep the organization on track (p. 111-112);
since PHS is such a large organization with many controlling factors involved from across the
state, it could be assumed that the CEO not only operates as an effective leader to the whole
statewide organization, but also as that bridge between the Board and the Mission.

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Despite this large management system, it is these individuals who are able to come
together under one mission to provide a chance for change to people overcoming the challenges
of substance abuse and criminal histories by offering treatment, housing and employment
(About Us, 2014, para. 3). As Worth (2014) states, relationships which were undertaken
primarily to advance the mission are more likely to be successful than those undertaken solely
for financial reasons or as a response to pressure from funders, (p. 201). PHS was founded by
individuals driven to help others reclaim their lives, and this allows PHS to move away from
the monetary gains of running a statewide organization and look towards building lasting
relationships (About us, 2014, para. 2).
Though PHS initially thrived by donations and grants alone, they have moved on to selfgenerating 90% of their revenue stream (D. Whelan, personal communication, October 31,
2014). The largest percent of this comes from their manufacturing deals with Boeing, local
printing companies, food businesses and Starbucks; according to ONeill and Williamson (2012)
PHS various social enterprises employ nearly 1000 people and include theoretically
unemployable people (p. 273). This means the investment of time and money PHS puts forth is
cycled back through their system in the form of valuable employees that will help build PHS and
in return the client learn valuable skills (McCormack, 1998).
Due to their ability to be self-sustaining, PHS is able to provide a variety of services and
programs to their clients. It is these programs that aim to fulfill the outlined mission dedicated to
providing a comprehensive and integrated array of services that help people make better
choices, recover from chemical dependency, manage mental health issues, secure housing and
overcome employment barriers (Pioneer Human Services, 2013b). PHS works with clients in

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every step toward their recovery, allowing for a symbiotic relationship as Sommers, Mauldin,
and Levin (2000) state in their case study report (p. 22).
Unlike most organizations, PHS does not thrive solely off the spirit of volunteerism.
Though Whelan does state PHS tries to utilize volunteers a lot because there is a wide span of
needs from them, and to develop interest in volunteering for PHS organizers typically attend job
fairs or recruit from schools or colleges (D. Whelan, personal communication, October 31,
2014).

External Forces
Just like internal forces, external forces play a variety of parts in a non-profit
organization. External forces can affect how an organization will meet its mission and goals.
Outside external forces can affect PHS funding, number and type of clients and programs. The
external forces PHS has to overcome include working within the prison system and other
organizations such as the Division of Behavioral Health and Recovery as well as making
program changes to reflect political voting and policy change (D. Whelan, personal
communication, October 31, 2014).
PHS works closely with the prison system and the Department of Corrections (DOC) at
the state and federal level to help clients transition smoothly into the community from prison.
According to their website PHS operates ten out of the sixteen state work release programs
across Washington State (State Programs, 2014). PHS and DOC have a close relationship:
DOC provides case management services to the client while PHS provides housing and
supervision (State Programs, 2014). Since PHS relies on DOC and other organizations to help
support clients, if funding for other organizations change it could put PHS at the risk of losing
community support and jeopardizing their ability to support clients.

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Political and policy changes also affect the programs and outcome of PHS. Threats come
from legal proposals, voting and changes in the laws and policies relating to PHS mission and
services. PHS struggles to keep state-funded chemical-dependency treatments funded and
supported by the government. PHS publishes data and articles to the public to help spread
knowledge about their organizations work and to promote funding. In the 2011 article titled
Economic Impact of Eliminating Chemical Dependency Treatment, PHS states that chemical
dependency treatments create positive and lasting effects which helps end the cycle of addiction
(Pioneer Human Services, 2011). When treatment funding is high, it creates more success stories
and for every $1 put into chemical dependency, $7.46 is saved by taxpayers and the government
(Pioneer Human Services, 2011). PHS encourages social services to be well funded and is
against cutting the budget for services like chemical dependency. PHS external forces affect
their ability to plan and meet their goals as a nonprofit.

Fiscal Snapshot
As an non-profit organization, PHS is extremely successful financially. Due to their
reputation across the state and record for excellent care and services, they are able to thrive in
many areas providing financial stability. As addressed in class, non-profit organizations receive
financial assistance in a variety of ways, but not every organization is diverse in the ways they
receive them. PHS receives funding federally, statewide, locally, internally, and from various
other sources like donations and treatment fees (Pioneer Human Services, 2013a) . By having so
many financial supporters, PHS does not put all their eggs in one basket. This is extremely
beneficial because if for any reason funding from one individual source were to be cut or taken
away entirely, PHS has a financial safety net. When an organization relies heavily on one source
of income, they run the risk of failure to continue if that source were to be eliminated.

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According to the 2013 financial snapshot, roughly 65% of total revenue received came
from either state funding or internal service sales (Pioneer Human Services, 2013a). Internal
businesses and contracts with other companies such as Boeing contributes to the high revenue
and leads to financial stability. Looking purely at manufacturing revenue, the earnings triples the
cost it takes to fund it, which shows how essential their internal sources are to their budget and
services. The biggest expense PHS faces is personnel salaries and benefits, accounting for over
62% of all money spent in 2013 (Pioneer Human Services, 2013a). PHS values employees and
provides notable care to all staff. Based on the 2013 financial report, the total profit was about
5.5 million dollars. For starting out as a single clean and sober house, PHS has come a long way
to have reached a stable and financially diverse income stream.

Reflective Analysis
As a group, one reason we chose to research PHS and apply management functions to
this organization was due to the fact that PHS values the idea of providing clients a chance for
change (About Us, 2014, para. 3). PHS is dedicated to helping marginalized populations and
helping clients find a place back in the community and in the workforce. A key strength of the
organization is its outstanding reputation across Washington State and its continual effort to
follow their mission at every opportunity. Treating clients and staff in an unbiased, nonjudgmental way is of the highest importance, and encourages successful attitudes within the
organization. PHS continues to grow in size and in services, thus creating new jobs and giving
individuals the tools to succeed. From interviewing Whelan, we learned that the chain of
command within the organization is sometimes a major barrier when trying to get things done
(D. Whelan, personal communication, October 31, 2014). Approval from each level needs to

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occur before any change can be implemented. This causes slow progression and can be
frustrating for employees of the organization.
Due to the size and clout of the organization, it has the opportunity to implement change
at the individual, local, and state levels (and beyond). The variety of services they provide allow
individuals to receive the help they need in many aspects of life. Because of their reputation and
connections with many other organizations, PHS gains financial support thus broadening their
opportunities and financial gain. We identified political issues as a threat that PHS could
potentially overcome from the external forces; political issues such as voting and policy change
affects social service work in drastic ways. This is a major threat toward PHS because a
significant part of their revenue comes from state and government funding. Lowering funding
could cause a myriad of issues and decrease successful outcomes for clients.
We view the strengths, weaknesses, opportunities, and threats of PHS as important
information to know in order to understand how the organization works internally and externally.
The strengths clearly outweigh the weaknesses which is a result of PHS being mission driven
and truly putting the interest of the client and care of employees as their top priorities. They have
a great reputation for a reason and are an important part of the history behind making services
like treatment facilities available. PHS manages its organization profitably and has many
financial supporters to help maintain and continue its future success
Conclusion
In conclusion, PHS as a non-profit organization has a complex and integrated
management system that reflects the organization and the broad number of services they provide
to a large geographic area. Because of their many services and locations, the organizational
structure revolves around the chain of command with the CEO and board members at the top.

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The CEO and board members supply the organization with strong leadership and direction. The
financial snapshot shows the diversity within their funding that is promoted by PHSs
connections and partners within the community. This helps to supply clients ample
opportunities for work experience within larger businesses that partner with PHS. The internal
and external factors within PHS helped to understand the organizations strengths, weakness,
opportunities and threats. Understanding the internal factors and external factors gave way to
understanding the complexity within large non-profits. PHS should be viewed in a holistic and
integrated perspective looking at every function from volunteers to funding to services they
provide for clients. As a group, we applied our understanding of management functions from
class, the book, articles, websites, interviews with employees to analyze and explore PHS as a
non-profit managment system.

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References
About Us. (2014). Retrieved from http://pioneerhumanservices.org/about/
Board & leadership. (2014). Retrieved from http://pioneerhumanservices.org/about/board/
Karen Lee named Pioneer Human Services CEO. (2010, Aug 02). PR Newswire. New York.
Retrieved from http://search.proquest.com/docview/734669133?accountid=15006
Keck, J., Zahalka, M., Bryant, T., Fisher, N., & Hathaway, K. (2013). Pioneer human
services: A
chance for change [Powerpoint slides]. Retrieved from
https://docs.google.com/presentation/d/1NBUGihEIwJH5x_eGypfLwHoP1nogucUEeNRuD
e-QwbE/edit#slide=id.p43
McCormack, S. (1998). Pioneer spirit. Forbes, 162(10), 136-139.
ONeill, M. & Williamson, T (eds.). (2012). Property-Owning Democracy: Rawls and Beyond.
Wiley-Blackwell, 273. Retrieved from
http://books.google.com/books?hl=en&lr=&id=X2n6PQdFsEC&oi=fnd&pg=PA266&dq=%22pioneer+human+services%22+strategic+planning
&ots=yrYf1MrrgW&sig=pGswj7WKByI9CynS1JIDeLtIVFw#v=onepage&q=pioneer&f
=false
Our Story. (2014). Retrieved from http://pioneerhumanservices.org/about/our-story/
Pioneer Human Services. (2011). Economic impact of eliminating chemical dependency.
Retrieved from http://pioneerhumanservices.org/wp-content/uploads/2012/01/CDeconomic-impact-101711.pdf
Pioneer Human Services. (2013a). 2013 financial information. Retrieved from

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http://pioneerhumanservices.org/wp-content/uploads/2014/04/Annual-Report-2013Spreads.pdf
Pioneer Human Services. (2013b). Providing a chance for change [Pamphlet]. Seattle, WA:
Pioneer Human Services.
Sommers, P., Mauldin, B., Levin, S. (2000, January 26). Pioneer human services: A case study.
Seattle, WA: University of Washington. Retrieved from
http://depts.washington.edu/npc/npcpdfs/phsrep.pdf
State Programs. (2014). Retrieved from http://pioneerhumanservices.org/reentry/state/
What Makes Us Different. (2014). Retrieved from
http://pioneerhumanservices.org/about/our-story/different/
Worth, M.J. (2014). Nonprofit management: Principles and practice. London, UK: SAGE
Publications, Inc.

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Appendix A
Pioneer Human Services (2013) demographics illustrating statistics that reveal the services
offered and the variety of populations they serve including differing age groups, occupations,
and family dynamics.

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Appendix B
Pioneer Human Services (2013) chart that visualizes the ratio of males to females within the
organization, the different race and ethnicities PHS serves, and an elaboration of age groups
involved.

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Appendix C
Interview with Dennis Whelan
How would you say this organization has changed over the years since its foundation?
Grown significantly because it was founded only as a halfway house for people getting
out of prison. 60 programs exist today and is considered the biggest rehabilitation
organization in Washington.
What kind of opportunities are you given based on your political, legal, economic,
environmental, cultural, etc. forces? Threats?
Pioneer is bi partisan, not political, has no religious affiliation, and does not discriminate
against employees or clientele. No environmental or cultural threats mentioned. Pioneer
stands for giving individuals a chance for change
What are your external forces, positive and negative?
Internal forces- bureaucratic chain of command: each level has to approve something for
it to get to the top. Awarded for positive outcomes, sometimes donations from individuals
External forces-DBHR, funders, department of health
How has the organizations history affected its current events? What worked, what didnt?
Excellent reputation and therefore have gained other contracts from orgs that werent
doing a good job. Have a great record for care, good employees, and providing better
outcomes for the people that use our services. The company reaps the rewards of
maintaining a successful and well run organization.
How have current events affected Pioneer?
Dennis wasnt sure how to answer thissaid he would need more time to think of a good
response.
Can you provide us with or identify the hierarchy of your organization, locally and/or
statewide, from BOD to paid staff?

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Different hierarchies in different divisions. Not aware of who those people are because he
doesnt personally interact with them and there are many people to mention that fall
under these rolls.
Who are your stakeholders? How do they affect you?
Clients: Within the org. and are the reason for service, need them in order for Pioneer to
run Staff: Backbone of the org. and they are needed in order for serves to be performed
Families: Families of clients and employees are affected by the issues we focus on, stress,
and be sources of support for those who need it.
Community: How successful we are affects our community/state because we help to
decrease crime, ER visits, homelessness, unemployment, etc
How is governance and leadership distributed? Why is it that way?
Chain of Command: CEO/CFO then vice president of each division, directors of
programs, assistant directors, manager, assistant manager. Some are in charge of entire
programs such as chemical dependency, while others are managers within a single
location. Need all these people in order to run the company on different scales.
What issues, politically and/or environmentally, impact your organizations ability to meet
its mission and goals?
Funding is low, direct funds from the county (yearly sometimes), legalization of
marijuana (48% supposed to go to behavioral health), social programs are often
cutdependent on state and available funding. Healthcare.new integrationanother
governing body to consider (apple).
Can you provide us with the annual report of Pioneer, including your expenses, revenue,
and funding diversification?
Have packets with info in them about this.
What are the strengths of the management functions that you currently abide by?
Weaknesses?

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Strengths= Defined roles in management that give clear expectations of duties.

Weaknesses= Too many managers that issues have to be approved by (in chain of
command) before something is passed through.
How do you maintain your financial needs?
Self-generation is the main source of money. 90% of all revenue is self-generated while
only 10% is from county funding. Machine shops in Seattle that are contracted with
Boeing are a huge source, and jobs within the organization.
How often is grant writing used within the system?
Grant writing is not used too often but when it is used, the intent is to help launch pilot
programs only. SAMSHA.many grants come from that (behavioral health).
What kind of fundraising do you do for the organization? What do its proceeds go to?
Some fundraising is done in Seattle (where the hub of the org. is located), but otherwise
very little fundraising is donemost profits come from within.
What are examples of communication that you use to reach out to your target population?
Needle exchange (each week an employee from detox goes to tell visitors about their
services), referrals to and from other organizations, networking with agencies both
locally and statewide, and the Emergency room.
How would you describe communication between different branches of the organization?
Great communication between different branches, no issues. All working towards a
common goal/ Pioneers mission.
How much are volunteers a part of your organization? What are they capable of doing?
Utilize volunteers a lot because there is a wide span of needs from them. Recruit and/or
receive volunteers at job fairs and from schools mostly.
On average, how many volunteers do you get within the year?
Unsure.

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How involved is Pioneer with its community? Is it being represented appropriately? Is it

considered a good location to be recommended to?
Yes! Answered in above questions.
Is the organization open to partnerships? How is this effective/ineffective?
Yes, overall Pioneer is very open to partnerships. For example, Whatcom County Detox
is partnered with Compass Health under one roof. Stated there are more problems than
benefits, butt heads and mission is sometimes not same. Goals dont always line up which
can be problematic.
What kind of initiative will Pioneer take if there is friendly competition?
RFP-other org compete to get this (put it out for a bidbest price)
How effective are your programs and services?
(Hard to answer this question in a short answer/ would get very specific).
What are the priorities of the organization?
Priorities are to help people and give them a chance for change

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Appendix D
The following image is that of the organizational structure within Pioneer Human Services.

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