This is a strategic plan analysis for a corporations crisis we were presented with Melissa McGowan SMAD 241 Final

Success of a company depends on the stability of that company. If the entirety of the organization is not internally united towards the organizations mission and goals, the company is then put at high risk when situations happen like they have with Percival Hampton. While Hampton did make drastic changes that contributed to Goodthings turnaround, he did not make his changes on foundations that would last, and consequently, the internal infrastructure of this charity has suffered. One problem with Percivals management was his inability to inform his employees of his lines of business and direction to which he was sending the company towards. The mission of the company had previously been to reach the $75 million dollar budget to disburse to needy people and causes, and while Hamptons adjustments exceeded the previous disbursal quota, he only gave out $50 million and closed down shops in the neediest of towns. Yes, the company still was giving money but not on the level they had previously stated, and when volunteers expected re-opening of stores in the neediest of towns, Hampton refused to meet with them. By opening stores in upscale areas and focusing on vintage clothing, Hampton strayed away from Goodthings original goals, and left many of his employees questioning his motives. The problem with this style of management is that Goodthings depends on its volunteer base for its success. Unrest amongst the volunteers creates a negative working environment, which does not allow the company to grow efficiently. It seems almost certain that Percival had not kept his employees informed with needed details upon his dealings with Endrun and Fly-by-Night

because not only was he exposed by a Goodthings member, the lack of support from his employees show that a line of communication was severed. When a company relies so heavily upon its volunteers, they need to be the priority. A second flaw in his management technique was fracturing his trust with his employees. This is another rule he broke because of the skepticism that surrounds many of his dealings over the past 5 years. He fired many employees right off the bat, without explanation, which left many uneasy and afraid to speak their feelings in fear of losing their job and steady pay. This was solidified when staff members who even suggested something against his beliefs were fired immediately in the crisis. Also, his handling of the money most likely left the volunteers and employees disgruntled because for running a non-profit, Hampton lived a life of luxury and made questionable stock dealings at the detriment of his companys success. When a company has a man like Hampton carrying their image, any false move made by them becomes not only his responsibility, but the companies as well. If he looks bad, Goodthings looks bad, and that is exactly what has happened. We face losing donations due to fear of association with our mishaps, and face undoing and success the company has reinstated over the years. This has to be handled. To address this internal, employee relations problem, I think it would be best to use a two-way symmetrical approach. We already are down on trust, and communication is key. Rather then trying to persuade them and place all the blame on Hampton, negotiations and incorporating their desires for the companies as well as ours in re-finding our organizations path is vital. I also believe that having Felicity OCallaghan directly write a letter that can be sent to all employees would build their trust in our new leader. It is time to give them all the facts, no

more hiding as did Hampton, but tell them where we stand, apologize for letting it get to this point, and promise that we are now refocused I think we need to address the wrong-doings that Hampton created, and apologize for those actions, but for now, he has resigned and I think we need to foremost focus on rebuilding our image and reconnecting with Goodthings identity. In my opinion the top three problems to address are Goodthings money disbursal, the reinstating of stores in needy communities, and dissociating from Hamptons dealings with Endrun and Fly-by-Night. I am aware the company has a rocky road ahead and many other problems to address, but handling these three would help reach the number one thing we have lost: our mission. We are not a corporate, for-profit company that we seem to be channeling these days, and its time to revert back to our charity just with a stronger leadership. I believe it is best to re-open some of the 500 thrift stores that were closed in the neediest of areas. I chose this because right now, our organization has the money to do this while we can, due to the money Hampton had allocated for expansion. By re-opening these stores, we can revert back to our charity-based identity. On top of that, we will restore faith with our disgruntled volunteers who had been pushing for this move all along, and since we rely on our volunteer base, this is crucial. Finally, by showing that we no longer are moving towards becoming a for- profit organization, companies who use us as their social responsibility will hopefully continue to give donations to Goodthings. By attacking the needy-stores first, this will enhance our credibility as a charitable organization as we move away from Hamptons mess, that unfortunately we let happen. In this approach we our dealing with three of our most important publics: our employees, our customers, and our donators. We have already established our problem statement and publics. As a company our new objective will be to re-open 200 of the

500 closed stores by January 1, 2013, almost one year from now. I think we should aim to have at least 50 of those 200 stores re-opened by March of the following year to ensure in our funding base that we are good on our intentions. We also should hold a news conference 2 weeks from now. This will give us time to ensure the logistics of this plan and be able to share the information with our publics and stakeholders. By doing this we will be able to reach a large audience, and spread the word of our plans to rebuild our image. But in doing this, I think it is most important to make a public apology. At the end of the day, Hampton represented Goodthings. It is best to ensure that he clashes with the views of our organization, but we let it go too far, and promise that our plan for the future is with everyones best intentions in mind.