World Vision was founded in 1950 by Bob Pierce. Though Pierce's being action focused and innovative, he had not been enough in establishing long-term goals and in growing management tools and creative strategies which made the business inadaptable to daily changes and dependent on the donors.
There were nowadays established offices in Latin America countries and WV's loss of contacts in Southeast Asia. Successor of Pierce, Mooneyham, saw the necessity to change the emphasis from Southeast Asia to Latin America. As sustainability of the sponsorships was doubtful, Mooneyham proposed to build up a children medical center in Cambodia. It had been rejected by the international panel. Later WV Australia and New Zealand developed Mooneyham's pre-planned medical center which was a first step of the internationalization and brought on change in mission statements in 1973. Appropriately, WV International was set up by US, Canada, Australia, and New Zealand. Problems started revolving around after the establishment of WVI credited to unclearness of tasks between the products and having different targets. This also caused ethnic problems in the organization. Moreover WVI shared the same location with WV US in LA.
When Tom Houston became chief executive of WVI, there was discontent in the business. He conceived the idea of Area Development Program (ADP) which he thought would help expanding the national offices. This might pave just how for finding local answers to local problems. Graeme Irvine, successor of Houston, set new core beliefs in 1990. After a long marathon of 24 drafts, mother board approved new quest in 1992. In 1995, WV Partnership chosen "federal model". With this model, it was aimed that all partners would be self-sufficient; however they would share the common terminology, systems and procedures.
In 1998, Stearns assumed the presidency of WV US. He completed reorganization and increased the efficiency in WV US, by developing strategies and sales programs for the donor acquisition and retention with Tandon, VP of Marketing in four years. The main element driver for their success was the attention they paid to the customer satisfaction.
Hirsch became chief executive in 1996 and initiated HIV/Assists strategy in Dec 2000 pushed by Mlay, African Regional Vp and Stearns, WV US chief executive. Casey was given as the director of Products initiative and asked to get ready strategies to move forward. This was time to set a brand new strategy for WVI and decide to continue or to give up. There would be some inside and exterior resistances from this new initiative. These would have to be managed carefully by considering organizational, countrywide, local, and ethnic issues.
Why has it used World Vision such a long time to configure its worldwide relationship organization structure and governance functions? What do you think of the federated partnership model they may have settled on? How appropriate will be the governance processes and mechanisms?
It had taken WV partnership business to configure framework and governance functions about 25 years. During this period, five people assumed the presidency of the business facing a change.
International Relationship, Central Control
Challenging the Central Control, The necessity of local participation, ADP
Since organization's environment has improved over time, WV needed to adapt itself to internal and external conditions. During Mooneyham's presidency, they had a need to improve their objective from transfer company to transformer and also to establish a global partnership to be able to adapt interior dynamics. Houston battled to deal with the issues among support, regional and international office aroused from insufficient communication and cooperation and realized the necessity of local participation. Irvine led the new structure of allowing all lovers self-sufficient while carrying on common terms, systems and operations. Hirsch initialized Assists initiative that could enable the organization to focus on global learning.
In this context, they needed to change their strategy when needed, when conflicts took place, or by recommendation. Expansion of the business also pressured it to redirect the strategy.
Vision was up to date and improved by each successor leader. Presidents tried to build up the organization's vision. There were many reasons retarding the development of the organization. During the transformation, each chief executive faced conflict on the list of professionals and directors from national offices, international office, and support offices. The primary reason with the was missing communication, cultural variations and cooperation one of the headquarters, support office buildings and national office buildings. Shortly, the business was insufficient integrating mechanisms. (Hill, 1994:384)The presidents must have arranged conflict management tools. They can have assigned the decision responsibility to a particular section or they could set up coordination/execution groups. (Hedlund & Dunning, 1993)
In 1973, internationalization process was brought on by the countries that are looking to have equivalent privileges as US office. In 1978, During Hooneyman's presidency, turmoil occurred due to lack of electric power allocation between operational and fund-raising teams. After a decade, through the Houston's presidency, similar conflict occurred again on the list of field and support offices, and international office. Section of responsibilities had not been clear and this caused major communication and assistance problems in the business.
Since WV was going to "internationalization", every person in the business should have been aware of the cultural variances. The new composition should have been negotiated at all levels and molded accordingly. Ethnical environment must have never been dismissed and management styles should have been compatible with the ethnic environment. Presidents dismissed the mid/low-level employees' views. For instance, during the presidency of Mooneyham, fund-raising clubs felt frustrated. The explanation for that was that Interdependencies between your units weren't place properly and units' successes were overlooked by the management. At least, change in the composition and quest could be talked about with the employees. (Hillsides & Gancel, 1997)
After adaptation of formal declaration of internationalization in 1978, before preparing the national model in 1992, the business was maintaining global strategy. The framework was centralized. Know-how and procedures managements were centralized, national offices were implementing head office' strategy. In 1990, the first step was taken up to copy know-how to nationwide offices, Area Development Program (ADP).
In 1992, after creation of covenant of collaboration, the organization's composition had taken a customary condition. With this covenant, each partner agreed on know how transfer to nationwide office buildings. The organization's capabilities would be interdependent and dispersed, and national office buildings would be self-sufficient while posting the common values and procedures. As stated in the case, relating to Myers, "That should result in centralizing things that can be carried out better and cheaper doing this and decentralizing other things that can be managed better on the front lines. . . . We found that the largest misreading of federalism is to call it decentralization. The main element to federalism is to ensure the right of treatment held by the first choice at the center"
Organization has interdependent network. According to the case, International council was positioned in highest level of chart. Members of this council were international board members. Furthermore to setting up and assessment of the goals, this council was also making tips to the International table regarding global strategies and regulations. International panel was responsible for strategic plan and budgetary approvals and international plan. Regional programs and strategies were designed at Regional discussion boards. These community forums also proposed staff to the WVI Table. The relationship office was the professional groups of the business and recognized daily operations. There were also partnership support office buildings in Europe and US to make lobby. Regional office buildings, the amount of which was four, were in charge of planning and programming the procedure of 48 countrywide offices. National office buildings were support or field offices or both. They had the right to symbolize on the international council and voting of regional representatives. Branch office buildings and Intermediate level offices were considered as transitional office to full interdependency. Although Branch offices were supervised by national advisory committees, WVI acquired the legal and management responsibility. Intermediate stage office buildings were governed by local planks and their critical decisions such as budgetary, appointment and termination were approved by WVI. Completely interdependent offices were regarded as nonprofit organizations. They didn't need any authorization from WVI for the things which were stated in covenant.
The federated relationship they resolved on would allow the organization to copy know-how to the nationwide offices. By doing that, they would be able to increase organization's countrywide responsiveness. Headquarters were accountable for strategic management and financial control of the organization. With that structure, although center of competencies and support offices were centralized to aid the neighborhood entities, in addition to procedure and marketing businesses, decision making responsibility was decentralized and national offices could design and provide their services to the local needs. That is why, nationwide responsiveness was improved. The negative area of this framework is that transfer of know-how was limited by the other nations. With this framework, coordination between central and local office buildings is important. Also, this structure allowed the organization to lessen their over head costs stemmed from centralized functions. (Hill, 1994:358-378)
What advice do you share with the International Mother board regarding the Assists Hope Effort? Should WVI pursue this as a significant strategic priority? What advantages do you really see? What concerns do you have?
WVI should keep focusing on this effort as a major concern, since this initiative provides added value to the organization. The biggest good thing about pursuing this initiative would be producing and transferring a fresh know-how in a different subject. With all the structure and strategy suggested by Casey, the business would concentrate on the third sizing, global learning, in addition to local responsiveness and cost perspectives. This means that it would be possible to set-up know-how on local and transfer it to different entities. This might require the transnational strategy from the business. (Hill, 1994: 394)This initiative could serve an integral to new opportunities for the organization's expansion. People in the business would discern with an effective planning and strategy every kind of project could be achieved.
It is clear that applying HIV/AIDS initiative will challenge the business in terms of proper and structural changes. According to the proposed organization graph, the composition would become more centralized than WVI's. Since WVI has sources and management functions in national office buildings, AIDS Hope effort could exploit these existing resources. Despite the fact that employees didn't learn how to deal with Assists crisis, their features could be exploited in certain procedures like logistics, task management etc. This might require matrix organization that could possibly causes electric power conflicts among the list of directors and managers. (Hill, 1994: 394)
It is also clear that in the beginning, professionals and employees will withstand to the new initiative. They could change the info related to the new initiative. Therefore, getting ready the managers and employees is essential. Additionally, it is vital to utilize data management and performance management systems to be able to keep an eye on the initiative's primary phase also to prevent probable problems before they appear.
The structure would be predicated on matrix structure which field and procedure managements could exert their influence on. Therefore coordination and integrating mechanisms should be arranged properly. In other case, this could cause conflicts and ambiguities which could improve the costs and hence the initiative's future. In order to curb these possible problems, ethnic issues should be analyzed. (Hill, 1994: 394)
Another concern will be the donor base. Relating to studies, donors weren't keen to contribute the AIDS issue. In cases like this, the organization would have to find new ways to increase its fund-rising for the new initiative which existing donors were very hesitant to contribute. Cost of finance rising activities would would have to be afforded by the countrywide offices. Key financing countries wouldn't normally be willing to afford the costs arising from this initiative. Regional directors exerted their effect on the decisions, since national directors were directly reporting to them. Along with the matrix structure, it would be much more difficult to suppress the conflicts among the managers.
Employees in nationwide office and public's resistance would be another matter. Since AIDS have been regarded as the consequence of the God in Africa, consumer wouldn't normally feel itself comfortable about any of it. Which means this means initiative could confront troubles to get the support of the countries suffering from the crisis. At this point cultural analysis needs to be engaged to the strategy.
If the International Plank approves the initiative, what advice do you share with World Vision's management (Dean, Hirsch, Full Stearns, Wilfred Mlay, Ken Casey)? How should they put into action this new goal? Specifically, how should they deal with the level of resistance they have encountered both inside and outside the organization?
Hirsh and Stearns acted as initiators. This was good for the initiation, since it implied top-management dedication. However, if this initiative was regarded as "top management's business", this initiative cannot have deep and wide dimension and can stagger. WVI should deeply review its framework and procedures. Planning the change and supplying the decisions at high levels would not be good for the strategy. The new framework should be negotiated whatsoever levels and shaped accordingly. Cultural environment should never be overlooked and management styles should be appropriate for the ethnical environment. Managers who will perform this change must be ready for the international issues. Cultural issues and variations take important role at this time. Participants should be aware of different meanings of different habits. (Hedlund & Dunning, 1993)
While Casey was worried about the fund increasing issue, marketing office was worried about the cost percentage which was a result of having different aims.
Since countrywide, support and international office buildings will have different priorities with shared operations, it is clear that AIDS effort will confront inside and external level of resistance. National office buildings will be in dilemma of countrywide responsiveness and integration. At this point, reluctant but strong managers make a difference the progress. Because of that, the management needs to involve and listen to every management and employee level from headquarter to national offices. It is also very important to figure out the cultural differences. Therefore, accomplishing culture audit can focus on the variations among employees and their anticipations. (Hills & Gancel, 1997) Additionally, management should encourage the casual integration mechanism although organization. This is done by organizing trainings for the employees, choosing appropriate managers who are team players, making use of performance management and scorecard systems, socializing the employees. (Hill, 1994: 387)Additionally, negotiation skills of the employees should be developed and everyone in the organization must have the same level knowledge of the international business and its requirements. (Hillsides & Gancel, 1997)
External resistance would be stemmed from public's Assists perception. The initiative should struggle to kill this perception. The public needs to be prepared about the HIV/AIDS crisis. In order to that, initiative should understand the culture and its meanings in the region. Strategy should be compatible with the cultural environment. (Hills & Gancel, 1997) Another exterior resistance would be donors' perception. Donors would feel suffered with donating to the initiative, because AIDS is perceived as if it happens to sinful people. Also, the organization's image had been focused on child. Since childhood and sinful people images contradict, the marketing and operation departments should struggle to combine these images to entice and encourage the donors.