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What do you think were the main causes behind the problems




Read the attachment and answer the following questions.;? What do you think were the main causes behind the problems that Magnolia ultimately suffered? What would you have done differently to avoid those problems?;? How did your decision compare to the board?s decision? Why did you make the decision you did? What effect did organizational infrastructure and culture have on your decision?;Attachment Preview;magnolia_therapeutic.doc;1;Magnolia Therapeutic Solutions Case Study;Magnolia Therapeutic Solutions is a nonprofit organization in New York City that specializes in;psychotherapy for individuals diagnosed with Post Traumatic Syndrome Disorder (PTSD). The;organization was created in 1998 by Mary Stewart. Mary recognized a significant demand for therapeutic;services in NYC for individuals suffering from PTSD. Despite a large body of research showing the;positive effects of psychotherapy on PTSD symptoms, at the time, there were very few organizations in;NYC that specialized in the use of professional psychotherapeutic services to work with PTSD individuals.;Seizing the opportunity to provide a much needed service, Mary established Magnolia Therapeutic;Solutions (henceforth referred to as Magnolia) and ran the organization as the Executive Director. Due to;the unique position of the organization and a number of funding sources willing to provide start-up grants;to Magnolia, the organization grew quite quickly. In 1998, the organization began with six employees, and;each employee wore many different hats to ensure the sustainability and growth of the organization.;However, by 2000, the organizations staff size had grown to 34. Thanks to the continued growth of;demand for services and the tangential supply of grant money, the organization was performing quite;well. Staff members were now no longer required to perform more than their main task, the annual budget;was now over $1.3 million, and the organization had already received many prestigious awards and;accolades for the services that they have performed for NYC.;On September 11, 2001, NYC suffered one of the most devastating acts of terror ever inflicted on the;United States. The NYC local government was quick to act and immediately called in a variety of services;to provide assistance in the overall relief effort. Magnolia, having been noted for its specialty in PTSD;services, was asked to attend to the needs of the upsurge of individuals suffering from PTSD because of;the terrorist attack. NYC provided a sizable, 1-year grant to the organization to help it meet capacity;issues that resulted from increased demand for services. Subsequently, Magnolia hired more counselors;and used the remaining grant money to increase other administrative services within the organization.;The assistance Magnolia was able to provide to the PTSD victims of the terrorist attack was substantial.;Considering the great success that the organization enjoyed, when constructing the 2002 budget, Mary;insisted that Magnolia included the 1-year grant that it received for 2001 because she believed that the;grant would be renewed for 2002. Additionally, despite the ailing economy, Mary placed steeper demands;on the development department to raise even more money than 2001 by budgeting anticipated grant;revenue higher for 2002. The total budget was $2 million dollars and was approved by the organizations;board of directors. If you were on the board faced with the decision to approve or reject this budget, what;would you do?;Ultimately, the organization suffered a $500,000 shortfall in the 2002 budget when the large city grant was;not renewed and revenue fell short of predictions. Subsequently, Mary was forced to layoff one third of;the staff. This had a very large and negative affect on the remaining staff and caused the organization to;stagnate over the next few years.


Paper#35063 | Written in 18-Jul-2015

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