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CASE STUDY REPORT: The Future of the Crossroads Center 1

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Case Study Report:

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The Future of the Crossroads Center
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Brandi Moore

Bethel College
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BADM 320- Organizational Development and Change


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February 21, 2018

Professor David E. Smeltzer


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CASE STUDY REPORT: The Future of the Crossroads Center 2

The Future of the Crossroads Center

Crossroads Center is a nonprofit treatment center founded 16 years ago for adolescence and

adults with addiction problems. The center is split into two segments. One part is for adult

treatment and the other part caters to treatment for adolescence.

Most of the support is provided by psychologists and therapists in the adult facility. However,

the primary support in the adolescent treatment facility is provided by teachers, counselors,

nurses and psychologists. Insurance covers treatments in both the adult and adolescent facilities.

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However, in the adolescent treatment facility, funding is also provided by grants, foundations,

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and other programs.

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Recently, a new regulation has been signed into action targeting facilities that receive state
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funding. The new regulation put into effect states that facilities like Crossroads who provide
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social services must have certain percentage of staff that hold a medical degree in order to
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continue receiving the funding. This new development has raised some concerns and causing

problems for Darrin Spoldi, the director of the center. He now must choose between giving up
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the state funding or letting some of his staff go in order to meet the percentage criteria.
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Question One
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How would you summarize the current situation at the Crossroads center?

Answer: The current situation at the center is basically that a difficult decision needs to be
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made and Darrin Spoldi does not like either solution he has come up with. The issue arose when

a new regulation was passed for facilities receiving state funding. The regulation requires that

facilities meet a certain percentage of staff holding a medical degree. If the requirement is not

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CASE STUDY REPORT: The Future of the Crossroads Center 3

met, the facility will no longer be eligible to receive state funding. To make matters worse, they

have six months to meet this criteria or Crossroads Center has to return all state funding,

retroactively to the signing date of the legislation. This is a problem for Crossroads because state

funding is a large part of the center’s financial resources and they need the funds to continue

providing their services to the community. However, if they keep receiving the funds, they will

be required to repay the funds if they cannot meet the new requirements. Mr. Spoldi is

struggling with the dilemma of deciding between funding and keeping his employees without

medical degrees. Darrin wants to get the community more involved with the center. However,

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he is getting resistance from the board of directors because they do not think it is a good idea.

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Darrin wants to keep all of his staff. He has made it clear that the staff is one of the things that

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make his center so successful and their dedication to the clients has proven effective with relapse
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and return rates very low. His staff remains optimistic and positive. They are willing to help in

any way that they can.


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Question Two

What is the client looking to accomplish? What challenges exist for the client in accomplishing
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his objectives?

Answer:  
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The client is hoping to come up with a solution that will allow him to keep all of his staff,

including those without medical degrees. Darrin feels that the teachers and therapists are a
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critical part of the treatment process. Darrin also wants to continue receiving the state funding

he needs. This is because it is also a crucial part of keeping the center functioning.

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CASE STUDY REPORT: The Future of the Crossroads Center 4

The challenges that Darrin must face while trying to accomplish these goals include:

1. Choosing the employees or the funding if he can’t find a way to keep both.  If Darrin

decided to keep the staff without medical degrees, he will give up the opportunity to

receive state funding. This decision could actually create more problems. If Darrin

decides to keep the state funding, he will have to fire staff members and reduce the

number of patients they take on at time. The loss of the staff could adversely affect the

center’s low relapse and return rates, as well. This is evidenced by the fact the patients

themselves credit the teachers and therapists for a considerable amount of their successful

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treatments.

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2. A different, but important, challenge Darrin faces in accomplishing his objective is
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whether or not he can meet the requirements in the six-month timeframe he has. As

previously stated, the center has only six months to comply with the new regulations. If
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Darrin cannot find a solution that allows him to keep the entire staff and the state funding,
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or if he does not choose one of the two options (funding or staff), the center will have to

repay all funds received during that six-month period. So, in addition to having to make
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a choice if a compromise cannot be made, his decision will need to be made quickly so

arrangements can be made to avoid the repayment to the state. Either way, the center
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may not be able to continue running without the state funding but also cannot afford to be
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required to pay back any funds it receives during the six-month deadline to comply.
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3. Darrin also has the obstacle of locating a new funding source if he chooses to give up the

state funding. The community could help with support, if Darrin were able to get the

board of directors to agree with it. Darrin could also try to locate a new outside source of

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CASE STUDY REPORT: The Future of the Crossroads Center 5

funding. Finding and placing new funding is a big challenge even without the six-month

timeframe he has to accomplish it. However, if Darrin can gather enough support from

other sources, he will likely be able to keep his teachers and therapists. Right now, the

lack of support likely stems from the low profile the center has worked very hard to

maintain.

Question Three

How would you design an engagement that uses dialogic OD practices to assist this client?

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Answer:  

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After going through chapter 12 again and comparing the possible dialogic OD practices, I

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believe that a real-time strategic change in combination with integrated strategic change would
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be the most effective in helping the Crossroads Center. Primarily because other options like
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scenario planning and future search conferences focus on many possible outcomes that could
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occur in the future or just are not targeted toward one specific issue. I chose this dialogic OD

practice over strategic planning or future search practices due to the limited amount of time the
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center will have to implement these changes because the issue regarding the funding is occurring
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now and needs to be addressed within the time allowed.


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First, I would use the process of integrated strategic change. The process consists of four steps
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including, strategic analysis, strategy making, strategic change plan design, and implementation.
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I would consider if the organization is ready for change, what the values and priorities are, and

perform an analysis. This will help me to better understand the company and what is important to

the people in it. The Crossroads Center’s case, is centered around being able to keep all of its

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CASE STUDY REPORT: The Future of the Crossroads Center 6

staff regardless of whether or not they have a medical degree. This is because the teachers and

therapists without medical degrees are a huge contributing factor to the success of the center’s

patients.

The second step, would be determining the amount of change necessary and a strategy would be

formulated. Crossroads Center, should consider the strategy of reducing the number of

adolescents it treats and increase the number of adult patients. This is due to the fact insurance

companies pay for the treatment of the adults. This would be a fairly significant change only in

the type of patients they treat but does not necessarily mean they will be eliminating all

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treatments of adolescents. The increase of insurance payments for adult patients may be able to

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offset the cost of losing the state funding for the smaller number of younger patients. This,

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however, will still mean that some cuts will need to be made with regard to teachers and
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therapists until a more steady and larger amount of funding is available for the adolescent side of
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the center. The next step would be to explain the plan and the changes would be outlined and
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implementation would begin. .

As previously stated, a real-time strategic change would also be utilized in conjunction with
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integrated strategic change. The participants would be the staff of the center, the board of

directors, and Darrin. Everyone is open to feedback from the other participants. However, when
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utilizing a real-time strategic change, there must be an idea of what the right strategy is for the
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center to go with. The purpose of this engagement would be to come to a decision. This decision
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could be made within the first or second day of the engagement and then developed on the final

day. The change event would be structured over a three-day period, as described in our text. All

members of the staff, would be divided into groups and will then be given the opportunity to

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CASE STUDY REPORT: The Future of the Crossroads Center 7

discuss what changes should be implemented. After all discussions, the center will be able to

make a plan and begin to implement it.

CONCLUSION

The issue at Crossroads Center is very complicated and requires a great deal of planning to begin

to solve it. Darrin should go to the community and see whether or not there is additional

funding or even a fundraising event he can use. Though it has kept a low profile for many years,

the center treats and affects a large number of people. When everything else fails, Darrin may be

required to let go of the teachers and therapists until he has hired more people with the required

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medical degrees, thus allowing them to hire teachers and therapists to keep the percentages at the

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required levels.

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CASE STUDY REPORT: The Future of the Crossroads Center 8

References

Anderson, Douglas. (2017). Organization Development. (4th Edition) (pp. 18-69). Thousand

Oaks, California: sage publications.

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