Business Planning Progress Report

1
Business Planning Progress Report

• Girl Scouts in the Heart of Pennsylvania
• October , 2009

2
Background

• Purpose
• GSHPA launched a business planning effort in
  August because the Council needs a financial
  turn-around.
• Presenting Problems
• Apparent deficit growing annually
• Declining membership and volunteer numbers
• Credit line use higher than preferred

3
Guiding Principles

• Girls First ---The goal is to have whats best
  for the girls and the volunteers that support
  them foremost in decision-making. Each business
  decision must be aligned with Girls First.
•  
• Assume changeAssume no sacred cows. Everything
  is on the table.
• StreamlineSimplify, consolidate, create ease of
  use for pretty much everything
• MarketA multitude of activities is offered
  programmatically with limited marketing and
  marketing strategy target best offerings and
  market or package these aim at increased usage
  of fewer options.

4
Guiding Principles, contd.

• Multi-year solutions--Recommendations will
  include short (6-12 months), mid term FY11 12,
  and long term FY 12 and beyond.
• TransparencyOpen communication, clarity about
  the intentions of the plan and the process of
  planning and frank talk with the players will be
  the culture we will model during the business
  planning process (and beyond)
• ModernizeGo virtual, use technology and tools
  used widely. More stuff online more stuff
  automated.
• Use Best Girl Scout practicesDraw from best
  practices from successful Councils adapt what is
  known to work
• Non-cookie oriented solutionsThe IRS and the
  national GS organization have a cap on ratio for
  cookie sales to budget scenarios past FY10 must
  be in compliance with regulations.

5
Business Planning Components

• Fast tracked stakeholder input on priorities and
  vision to guide planning.
• Fiscal data fact finding created single true
  picture.
• Recommended roadmap toward fiscal stabilization

6
What are we learning?Stakeholder Analysis Data
Collection

• Girls Online Survey (1,160 responses), Focus
  Groups (5)
• Volunteers Online Survey (741 responses), Focus
  Groups (2)
• Delegates Meetings, Oct. 12-20 Will be
  opportunity for volunteer feedback on emerging
  plan
• Staff Focus Groups (5)
• United Way Executives Coming up, third week of
  October
• Board Sept. 1 Board Meeting, Online Volunteer
  Survey
• Cross Section Strategy Team Retreat, Sept. 12
  20 people

7
What are we learning?Stakeholder Analysis GIRLS

• In your opinion, how do you think we can get more
  girls involved in Girl Scouts?
• Fun Activities
• Publicity
• In your opinion, what would make more girls want
  to attend our resident camps?
• Affordability
• More fun activities
• Modernize facilities
• Publicity
• Top Program Theme Choices
• Leadership and Self Esteem
• Health and Wellness
• Community Service
• Environment

8
What are we learning?Stakeholder Analysis
VOLUNTEERS

• Want
• Excellent customer service
• Flexible store hours or fast delivery of
  materials
• Flush toilets, showers, and outdoor expertise at
  camps
• Streamlined, consistent communications from
  Council
• Like
• Leadership Self-Esteem, Health Wellness,
  Community Service (top theme choices)

9
What are we learning?Stakeholder Analysis STAFF

• Want
• More flexibility and less work overload
• More marketing/pr
• To be trusted and to have more input in decisions
  affecting the front lines
• Like
• The idea of giving better customer service
• View work with volunteers as crucial to getting
  more girls want to be better organized

10
What are we learning?Stakeholder Analysis

• Key Points of Agreement
• Camps are under-resourced
• Great customer service is key
• Ramp up internal and external communications to
  recruit and retain girls volunteers

11
What are we learning? Financial Overview
12
What are we learning?Financial Overview

13
What are we learning?Financial Overview
14
Closer Look Office Facilities

• Excess office space. Examples
• Hazelton Office.5,090 sq. ft., 7 staff, annual
  exp. 100,000.
• York Office has 15,000 sq. ft., 13 staff, annual
  exp. 85,000.
• Scranton Office, 6,778 sq. ft., 8 staff, annual
  exp. 100,000
• Leases are a financial drain
• Office operations do not meet customer service
  needs
• Troops and SUs generally do not meet at offices
• Staff tries to cover office hours and also work
  with volunteers on nights and weekends

15
Closer Look Offices

• CHOICES UNDER CONSIDERATION
• Downsize office space
• Sell office space
• Establish satellite office model

16
Closer Look Retail/Stores

• Ineffective retail operations
• 68 of Sales done in Sept/Oct/Nov
  Mar/April/May resources dont match peak time
  needs
• Web site is very basic, not engaging and limited
  product offerings
• Low tech inefficient labor intensive process
  to fill on line orders and customer needs
• Stores in each regional office not open evenings
  and Saturdays when volunteers need to make
  purchases.
• Retail sales do not fully cover the true cost
• FY 2009 net revenues 200,000 expenses and
  staff 205,000-255,000.
• Council assets tied up in unproductive inventory
• Est. 500,000 inventory (physical inventory
  reconciled 10/15/09) spread across 7 locations
  not enough on hand by item for volunteer needs.
• High rate of inventory shortage (10 - 12 from
  last physical inventory)
• Est. 25 -30 of the inventory (100,000 -
  150,000) is in fashion T-shirts and gift items
  not selling

17
Closer Look Retail/Stores

• CHOICES UNDER CONSIDERATION
• Consolidate stores to fewer locations
• Develop online business with speedy delivery
• Develop and implement traveling trunk with
  delivery van

18
Closer Look Camps

• Camps are under-resourced. Examples
• FY 2009 budget constraints resulted in limiting
  activities i.e. no horseback trail riding only
  corral riding, pool closed at Small Valley and
  resident camp rotated in 4 week intervals between
  4 camps
• Camp facilities are not modernized (flush
  toilets, hot water showers, etc.)
• Necessary capital expenditures for camp
  improvements and safety requirements have been
  deferred for multiple years. Current capital
  needs at camps Capital needs at camps
  2,178,920
• Camps are under-utilized. Examples
• 80 of the 2009 camp usage was in 7 camps
• 85 of 2009 camp usage was for troop led
  activities (excluding day camp)
• Fewer that 10 of girl members attended resident
  camp
• 44 of the total membership girls participated in
  some kind camp centered activities
• Long Range Property Task Force Report

19
Closer Look Camps

• CHOICES UNDER CONSIDERATION
• Discontinue use of and/or sell some camps
• Use proceeds to invest in program and capital
  improvements at other camps
• Pursue harvesting of natural resources, cell
  tower leases and conservancy

20
What Are We Learning?Key Findings

• Lack of financial accuracy and transparency
• Overextended and ineffective operations draining
  resources
• Organizational issues contribute to difficult
  GSHPA climate

21
Where Are We?Critical Issues

• Income and financial information inadequate to
  support GSHPA
• Council credibility low
• Membership declining
• Under-utilized, under-resourced camp properties
• Council post merger disarray

22
DISCUSSION

• What surprises you?
• What concerns you?
• What did we miss?

23
Where do we want to go?Emerging Vision

• Excellent Customer Service. A focus on creating a
  customer service culture for all our
  constituents, with particular emphasis on
  streamlining and consistency in supporting the
  volunteers.
• Signature Programs. The Council will concentrate
  upon excellent, fun programming especially
  affordable, Council-wide Girl Scout programs that
  girls cant get anywhere else.
• Great Camps. Go from good to great in outdoor
  programming by investing in modern facilities and
  outdoor expertise at key camps.
• Higher Visibility. Raise the visibility of Girl
  Scouting through strategic marketing and public
  relations campaigns.

24
Where do we want to go?Business Plan Goals

• Strong financial foundation.
• Integrated customer service oriented culture.
• Increased membership through integrated, focused
  council-wide programming attuned to the needs of
  girls

25
How will we get there?

• Step up fundraising. We are beginning a
  comprehensive annual campaign with opportunities
  for leadership gifts and sponsorships for
  individuals, foundations and corporations.
• Use smaller, less expensive office facilities. We
  will save money over time through becoming less
  dependent on larger office facilities. We will
  phase in smaller offices and sell property in
  order to relocate to less expensive facilities.
  Well create flexible space that can be used for
  Service Unit or troop meetings.
• Reorganize the sale and distribution of essential
  Girl Scouting materials. We can move toward
  profitability with better online shopping, speedy
  delivery, and consolidation of our store
  operations.
• Invest in modern facilities and outdoor expertise
  at key camps. We will study the
  revenue-generating potential of all camps and
  make further decisions about the rental or sale
  of camp property and resources. Revenue raised
  from camp property will go to improve and
  maintain camp property and to deliver camp
  programs.

26
Next Steps

• Prepare five-year forecasts to understand the
  financial impact of implementing these
  strategies.
• Budget for the current year.
• Decisions and additional planning

27
Our commitments to volunteers

• We understand that you are the key to delivering
  Girl Scouting to the girls.
• Excellent customer service means supporting
  volunteers with the appropriate materials,
  training, information and resources you need to
  work effectively with girls in a timely and
  consistent manner.
• We will continue to involve volunteers in
  decision-making about the direction of the
  Council.
• We do not anticipate changing our regional
  structure.
• We are committed to careful planning and to
  making orderly, clearly-communicated changes.