Ronald McDonald, Case Study Example

Background 

Ronald McDonald House has been assisting families in Kansas City since 1980.  Its core values are defined in its Mission and Vision Statements:

Mission Statement for Ronald McDonald House Charities in Kansas City: To reduce the burden of childhood illness on children and families by:

• Creating a caring and uplifting environment
• Providing a comfortable lodging convenient to a health facility.
• Investing in affiliated programs that comfort and assist children with health concerns and their families.
• Undertaking resource and fund development activities that support our facilities, programs, and services.

Vision Statement for Ronald McDonald House Charities in Kansas City: To lift the hearts of kids and families from the hurt of today to the hope of tomorrow.

Timeline:

1980:  Small group of volunteers organizes funds for the first RMH in Kansas City to be built using funded through a local philanthropic partnership.  First house opened September 19, 1981.  It had 11 bedrooms and cost $1 million

1987:  RMHC began building the second house at 25^th and Cherry Street. 18,000square feet, took 15 months to build.  It had 19 bedrooms and opened September 19, 1988 exactly 7 years after the first House opened.

1997: RMHC opened the Family Room in The Children’s Mercy Hospital.  It had 7 bedrooms, a kitchen and living room.

• For the first 20 years of the RMHC was led by an ED from the local Junior League.
• By the late 1990’s, it was estimated as many as 41 more rooms were needed within the next 5 – 7 years.
• In 2002, 3,669 families on the critical list, only 1,555 could be accommodated.
• Additional referrals continue to increase annually, with more than a 30% increase since 2001.
• RMHC Bard members and the staff at Children’s Mercy conducted an analysis and said they need at least 19 new rooms and 12 long term rooms/suites immediately. With projected growth analysis, it was indicated another 10 rooms would be needed in the next 2 years bringing the total rooms needed in Kansas City to 41. Patient admissions to Children’s Mercy in 2002 increased 6.1% over 2001 with more than 11,400 admissions, outpatient visits topped 225,000.

Situation – Original houses aren’t capable of accommodating the growing number of families in need at The Children’s Mercy Hospital.   RMHC does not have the room’s to accommodate even all those on the critical list and is thus not fulfilling is Mission and Vision statements.

• Target – Build adequate rooms to accommodate the numbers of families that are coming in each year and fulfill the mission statement and vision statement of RMHC.

• Path – Need money to build a new house, should be consistent with green building as per the new RMCH Global building guidelines

Values of the Ronald McDonald Charity Organization: The belief of the staff, Board Members, volunteers and donors are that the Ronald McDonald House provides a valuable philanthropic service to the community by providing a place where families can be together during a sick child’s treatment at the hospital.  The organization believes in helping families, and providing a positive service to humanity.

Strategy of the Ronald McDonald Charity Organization: The current strategy of the RMHC is to secure funds to build a new house in Longfellow Park across from their House at 25^th and Cherry.  RMHC needs an additional $9 million to complete the project to create an additional 41 rooms.  Extra funds are also needed due to the new Building Guidelines laid out by RMHC Global.  All Houses are now to be built using “green” building and technology.

Based on these values, it is easy to understand why the new Executive Director Samantha Johnson would be in favor of undertaking of the building of the new House at Longfellow Park.  The new House will help to fulfill the mission statement of the organization by meeting the demands of families in need.  Since the current housing situation is unable to meet the current demands, RMHC must build a new House that will be able to handle more families in the future. However, before beginning the project, Samantha Johnson needed to evaluate her team members, the staff at the Ronald McDonald House Charity offices.  After her interviews with the various staff members, it was obvious she was going to have some issues with certain staff members.  The goals of the Ronald McDonald House Charity clearly coincided with the goal to build the new house to accommodate the needs of the growing families in need that were choosing to bring their sick children for treatment at Mercy Children’s Hospital in Kansas City.

Recommendations pertaining to human resource/staffing issues

The main opponent to Samantha’s agenda in realizing the goals of RMCH to get the new House built is a member of her staff, Sheron Smith. Sheron has been a long time member of the Ronald McDonald House Charity.  She has served at RMHC in a variety of development related positions since 1995 and was appointed to Director of Development in 2000. She has proved to be a valuable asset to RMHC.  She worked on a successful campaign to raise $1.1 million to fund the Ronald McDonald Family room in Children’s Mercy Hospital.  She acknowledged to Samantha from the beginning that she remained loyal to the former ED and voiced grave concerns about the Boards desire to start a capital campaign: she believed it would be better to add on to the existing RMH at 25^th and Cherry.  It would not cost as much and Sheron did not believe the timing was right to initiate a huge capital campaign given the recent terrorist attacks. Although Sheron has proved herself a valuable player in a past capital campaign, it is unclear that she will prove valuable in the current campaign, and may actually prove to be more of a destructive force rather than a positive force.  There are multiple discrepancies between her personal philosophy and the mission and vision statements of RMHC.  Her fears about a terrorist attack do nothing to address the issues concerning the families of sick children who will continue to need housing while their children undergo treatment at Mercy’s Children’s Hospital.  In addition, it was clear from the interviews that several staff members were experiencing issues with Sheron.  Sean O’Reilly voiced concerns about Sheron’s lack of knowledge about technology and attributed this to the group’s lack of an effective donor base.  He also mentioned that Sheron is unable to solicit ideas or suggestions from her staff.  Sheron also showed disapproval at the choice of Patricia Murphy as the coordinator for the new capital campaign even though the choice was approved by Board President Jon Pepin. Her inability to align her personal philosophy with that of RMHC is not a good sign. In addition, Samantha discovered that Sheron had not passed on Sean’s suggestions for upgrading the data management system for donors, perhaps because she is intimidated by him.  She appears to be worried that RMHC Global Advisory Council would not approve her suggestion of a small addition or remodel of the existing Cherry Street House because of the new Design and Construction Guidelines that had been implemented.  Instead of supporting the concept of the new house, which is in line with not only the RMHC of Kansas City but also RMHC Global she is using her own personal fears to guide her decisions.

Jon Pepin, President of the Executive Committee, expressed his concern that Sheron had not demonstrated the energy to undertake a significant capital campaign that would be needed to meet the housing shortfall RMHC was experiencing.  Samantha will need to determine if Sheron will be able to pull it together to be a team member with a project she does not support.  In addition, her attitude with staff members could create problems in coordinating the campaign. It might be a better decision to replace Sheron with Sean O’Reilly, a part time staff member whose rise to full time could infuse new energy into the project.  His knowledge and enthusiasm is in line with the RMHC mission and vision statements.

Another problem that Samantha encountered during her evaluation of the RMCH was the situation with the Board of Directors.  According to the RMCH guidelines, that the term of office of a Director shall be for three (3) years or until a successor is elected and installed.  No Director shall be eligible to serve more than two (2) consecutive terms.  Samantha realized that some Directors had served more than ten, fifteen and nearly twenty years on the RMHC Board of Directors.

This is a delicate situation which must be carefully dealt with.  Many of the board members seem to support the new capital campaign which is beneficial to Samantha.  In addition, many of the board members have ties that may help the campaign to go more smoothly.  For example, Lisa Fairborn has ties to Hallmark Cards, which will come into play as RMHC needs to find a way to get Hallmark to donate the warehouse to them in order to go ahead with the building campaign.  Director Pat Borck has been on the Board for years but both her and her husband give generously to the RMHC and are instrumental leaders in the capital campaign.

Although the Board has some very powerful members that are doing good things, there is some talk of Board members getting preferential treatment because they have been there too long.  By overlooking their own by laws, the Board members are not aligning with the mission of RMHC.  If Samantha felt like there were members on the Board who were threatening the viability of the capital campaign, then maybe it would be wise to address the issue and remind the board members who have served too long that  the term of office of a Director shall be for three years or until a successor is elected and installed.  No Director shall be eligible to serve more than two consecutive terms.  Board members would retain their position until a suitable successor could be found and elected.  It would be important to keep current Board Members as well, as these people hold powerful positions in the community and are fairly influential.  When undertaking a $9 million capital campaign, it will be important to maintain positive relations with the community.

Samantha needs to correct the staffing issues before the capital campaign can get started.  With only 5 full time staff members, including herself, RMCH is clearly lacking the manpower it needs to execute a large scale capital campaign.  In addition, part time team members are not dedicated to the project due to dissatisfaction with their part time, no benefit situation at RMCH.  Some of these team members seem like they could bring a lot to the table if they were given the opportunity.  For example, Jennifer Williams seems like an asset at this time considering her role is to coordinate special events and support all fundraising efforts.  This is exactly what will be needed during the upcoming campaign.  Stan Lyman also seems to have a lot to bring to the table at this juncture, as he is knowledgeable about the new Design and Construction Guidelines for Ronald McDonald Houses.  His knowledge will be very good to have during the planning of the construction of the new House.  Sean O’Reilly is also poised to become a valuable asset to the staff at this time.  His knowledge of data base systems could be vital in implementing a new system to access the donor list more effectively.  The donor database could be a wealth of information and contributions, as well as manpower during the campaign.

In addition, having so few full time staff members has been contributing to the RMHC’s inability to serve the growing medical demands from The Children’s Mercy Hospital.  RMHC Global determined that referrals from Children’s Mercy Hospital alone have increased 30% since 2001 and the staff is unable to deal with the increase in families without an increase in staff or volunteers.  RMHC needs more man power to deal with both the needs of the Houses and the needs of the organization in its immediate goals of the capital campaign and the building project.  More full time staff members could more fully engage the volunteers.  If volunteer services were coordinated more thoroughly then it is possible that more families could already be accommodated by RMHC.

Samantha should fill the three full time vacancies with team members.  She should give Sean O’Reilly, Jennifer Williams, and Stan Lyman a chance to step up and their fresh energies and talents into the project.  Implementing the new data base system would give RMHC access to more members, a much needed strategy to begin the capital campaign.  Volunteers could contribute fill various duties required by Samantha for implementing the capital campaign.  Allowing part time team members to step up into full time positions will bring new energy into the project.  Giving the part time staffers a chance to step up to full time with benefits will give the office more man power and man hours to get started on the campaign as well as begin the planning for the new House.  There is much that needs to be done, both with the design of the House itself and the small obstacles that are standing in the way of starting the building.

It is obvious that the current staff is overworked and under coordinated, leading to the problem of accommodating as many families as they might possibly be able too.  The increase in families is obviously too much for the current staff to handle, since they are only able to accommodate less than half of the critical patients each year. A better donor data base could be developed and implemented and take advantage of all the names that are in it.  If coordinated correctly the volunteers will be able to assist in the extra work the capital campaign will bring to the office.

Staff members that feel appreciated and excited about what they are doing will work harder, so it is important for Samantha to create a work environment where workers feel passionate and positive about the work and the project.  In order for the goals of RMCH to be accomplished, they will need an energetic team of staffers who can work together for the good of the organization.  It is important for everyone to be aligned together with each other as well as with the RMCH mission and vision statements.

Decision regarding location of the house near the Children’s Mercy Hospital

The design and description of the proposed House were amazing and seemed like the perfect plan for a House to fill the growing needs of the community and the Hospital.  However, there were several members of the RMHC House Charities Board of Directors who uncertain of Samantha and the staff’s ability to raise the additional $9 million that is still needed to build the new House.  Samantha will need to prove her ability to the Board of Directors by making positive changes with the staff and the efficiency of the running of RMHC.  By meeting the goals set out by RMHC she will gain more credibility from the Board.  Bringing in Patricia Murphy was a good first step.  Patricia is a pro in capital campaigns for nonprofits and should be able to assess the ability of Samantha and her staff to raise the additional $9 million.  If she feels that there campaign could be successful, they need to have her help them to develop a powerful campaign that will draw in the funds they need to fulfill the RMHC mission.

The State Line House is clearly being under utilized by RMHC.  On average this house is, on average, only 15% occupied per week. Volunteers at this house are mostly from Johnson County, since it is the nearest house to that area.  Johnson County is a very affluent county and people that choose to live there would probably not choose to volunteer at the new house in Longfellow Park, at least according to Deone Jackson.  Since she has been with RMCH since its beginnings in the 1980’s, she probably has a good idea of her volunteers.  However, by actively seeking out new volunteers from different areas, groups could be found to service the new House while the volunteers at the State Line House continued their work there.  However, more volunteers should be coordinated and make State Line House more efficient and able to accommodate more families.  Turning needy families away when there are empty rooms available goes against the entire mission of the organization.

The local Longfellow residents need to be convinced that the Ronald McDonald house will be a good asset to their neighborhood otherwise they are not going to allow the organization to build on the neighborhood park.  A neighborhood meeting should be called to give residents a chance to hear the proposal and learn how the new House will help their neighborhood. There is talk that the park becomes a drug den at night, leading to an unsafe environment.  If the park is a magnet for dealers and addicts, then it will be beneficial to clear it of this negativity by building a house for the families of sick children.  Another benefit would be the dismantling of the dilapidated warehouse that is owned by the Hallmark Corporation.  The ugly building will be replaced by a unique new building that is ecologically sound.  The earth around the building will be renewed with freshly planted trees, and landscaping using plants that will naturally clean pollutants from ground water.  The technologies will benefit not only the RMHC, but also the property owners in the neighborhood.  The building project could increase property values in the area as well, brining more value to local home owners.

The Longfellow residents need to feel like they are a part of the project and also that their needs will be met by the construction, not just the members of RMHC.  As a thank you to the residents, RMHC could donate a new playground to be built on the part of the park they will not be building on.  This would give back to the community and make the residents feel like they are getting something out of the project as well.  In addition, individuals could be utilized as volunteers, bringing in a much needed volunteer base into the House.  It might be possible to find the volunteer help they need close to home.

The next issue that needs to be addressed before the plans for the new House can move forward is the issue with the Hallmark warehouse.  The warehouse is located on the tract of land next to the place of the proposed House.  This land is needed to be utilized as a parking lot.  The parking lot has two purposes.  First, it will be used as parking for the many families that will be serviced by the Longfellow House.  In addition it is needed as part of the green building design for the house.  In order for the house to be built using sustainable technology, a geothermal heat pump would need to be buried beneath the parking lot in order to provide heating and cooling for the House.  This system would save RMHC on monthly utility bills, as well as save space and noise level of a standard HVAC system.  Hallmark Cards should be solicited by RMCH to donate the land as part of a tax free charitable donation.  There is a board member, Lisa Fairborn, who is a principal in the consulting firm of Fairborn and Associates.  One of her major clients is Hallmark Cards.  Her influence could be used to present Hallmark with donation proposal.

The strategy that should be followed to convince the Kansas City Board of Parks and recreation that Longfellow Park would become a more useable space if a new Ronald McDonald House could be built on a portion of the site would be to set up a seminar to present the plan for the House to the Kansas City Board members.  In reality, RMHC only needs less than half an acre of the 1.65 acre park on which to build.  The rest of the park would be landscaped by the architects.  The plan calls to significantly increase the number of oxygen-producing plants and trees on the site; there would be three times as many trees and plants in the Park when the project is completed than are currently in the Park.  The design calls to use plants that naturally clean runoff before it enters the City’s storm water system.  Taking care of the land would be beneficial to the community and would help restore some nature to their community.  The Park is described as being unsafe and a place where drug deals go down.  It would be better for the community for RMHC to come in and help to turn the space into something beneficial for both the families it services and the community.

Decisions regarding building a sustainable or “green” house and achieve LEED certification

If the project at Longfellow Park is to be undertaken, it should be done right to plan for the future.  Green technology will benefit RMHC by reducing energy costs in the future.  Following the green guidelines laid down by RMHC Global will ensure that the Longfellow Park House will stay in compliance in the years to come; eliminating the need for renovations after it is built.  The Ronald McDonald House should meet the LEED Certification Standards because this will add value to the building, create a safer environment for the families and kids, and leave a greener footprint on the neighborhood and park.  The elements of sustainable design to be incorporated will include many benefits to the RMHC by creating a space that has enhanced indoor quality by minimizing indoor pollutants and allowing daylight to naturally enter the space.  In addition, it will optimize energy performance which will reduce on electrical and utility costs, saving RMHC money in the future. The cost of certification is only estimated to cost an additional $100,000 to $150,000 which is a small price in comparison to the overall cost of the project.  In addition, it will add value to the property and ensure that the new house is in compliance with the RMHC Global Building Guidelines. LEED certified projects cost less to operate and maintain; are energy and water-efficient; have higher lease rates than conventional buildings in their markets; are healthier and safer for occupants; and are a physical demonstration of the values of the organizations that own and occupy them.  By adopting the LEED standards in building the new House, RMHC is following in line with its mission and vision statements and creating a building that will not only benefit the families that use it, but is also soft on the environment and inspiring to other builders.

Decisions to build a new House requiring a capital campaign to raise $11 million.

It could be possible to trim costs on the $11 million design project by eliminating unnecessary options.  It would be wise to keep the systems in place that will help RMHC to save money in the future.  Rainwater collection, for example, will save RMHC money on water by utilizing free rain water.  The geothermal pump that will be buried under the parking lot will keep utility costs low by providing the House with a free, renewable energy source.  To keep costs lower, some spaces could be combined.  The TV room, for example, may not be necessary since the basement will offer many activities for families and kids.  All aspects of the design of the new house have benefits.  Instead of sacrificing creating a really cutting edge center that will bring many benefits to thousands of families in the future, RMHC should begin giving energy to their capital campaign and get the money they need to create a really special House.

If the decision is made to go forward with the capital campaign, the Board of Directors and the Ronald McDonald House staff and the Executive Director would be wise to develop contingency plans at this time.  Despite best intentions, there is always the possibility of something going wrong. Having a back-up plan is an important part of going ahead with a major undertaking like the capital campaign.  In case Samantha is not able to get the targeted $9 million, a plan could be drawn up for a less expensive house design.

The strategic plan for RMHC needs to address the goals of the organization over the next 3 to 5 years. It is imperative that Samantha use her role as Executive Director to ensure that the Board of Directors, Volunteers, and RMHC staff works together to ensure that the mission and vision statement of the organization are lived up to.  Teamwork between all parts of the organization is required in order for the group’s goals to be met.  Samantha will have to ensure that her staffing problems are cleared up before she can move forward with the capital campaign because it will take everyone working together in order to be successful.