American Red Cross vs Susan G. Komen

Topics: Susan G. Komen for the Cure, Change management, Race for the Cure Pages: 10 (4198 words) Published: March 28, 2014
January 31, 2014
American Red Cross vs Susan G. Komen Foundations
Company Background
American Red Cross
As one of the nation’s largest humanitarian organizations, the American Red Cross (ARC) is dedicated to helping people in need all across the United States. Alongside other Red Cross networks located around the world, it depends on donations of volunteer time, blood, and money from the American public to support the lifesaving services and programs. The ARC is devoted to saving lives and helping people prepare for and respond to disasters. It is the largest supplier of blood and blood products to hospitals nationally and also assists victims of international disasters at locations worldwide. (American Red Cross). ARC has undergone changes over the years of new CEOs, large “reduction in force” and new equipment implementations. Susan G. Komen for the Cure

Susan G. Komen (Komen) is the largest society encouraging the best and latest science and in the fight against breast cancer. With events like the Komen Race for the Cure, they have invested almost $2 billion, hoping to end breast cancer in the U.S. and worldwide by way of innovative research, community health outreach, advocacy and programs in more than 50 countries. (Suan G. Komen for the Cure). In 2012, Komen pulls funding from Planned Parenthood which causes a media uproar, resulting in Komen restoring the funds a month later. This scandal causes a 22 % in contributions over a year. What follows next is the resignation of their president, Liz Thompson and two board members would be stepping down in September. Founder and CEO Nancy G. Brinker will move into an advisory role. (Writer, 2012)

Change ImageBasis of ImageApplication to Company #1Application to Company #2Pressures for ChangeDiffers from others how?Unintended consequences from Image DirectorIs an image of management that is controlling of the change. The director moves the organization in ways to produce the change. Donations dropping Technology

Trust issues
NavigatorSomewhat has control and will achieve some changes; however some changes occur that they have no control over. CaretakerSome control, however the ability to exercise the control is constrained by a range of forces both internally and externally. CoachA position where the manager can shape an organizations capabilities. InterpreterThis image is in the position to put some meaning into the changes needed and help make sense for the rest of the company to understand NurturerThis image has an assumption that the smallest change can have a large impact on parts of the company, and managers are not able to control the outcomes.

Description of changes
Both foundations have undergone CEO changes and rising competition. These once trend setting foundations have now suffered from drop in donations and trust issues from the public. Because of trust issue factors with the Planned Parenthood scandal, Susan G. Komen CEO Nancy Brinker was asked to step down in August of 2012. The failed attempt in January 2012 to pull its funding out of Planned Parenthood caused donations to drop 22 % in the year following the controversy. Contributions from donations and corporate sponsorship dropped to $128 million in the year ending March 2013. The Planned Parenthood news caused several executives to leave the organization and fewer people participated in the Race for the Cure across the county. (Stengle, 2014) Komen paid out almost $400,000 in severance in 2013 for the executives who left and $270,000 to its former president while the company’s donations and revenue dropped by 22 % last year. (Hrywna, 2014) Gail J. McGovern joined the American Red Cross (ARC), in April of 2008, and since then she has initiated a wide-ranging innovation project at the ARC, including a revamping of its IT systems. However, the ARC is on its seventh CEO since 2002. There was the criticism...

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