June 2005

CEO Coaching / Nonprofit Org

Jun 11 2005
By: Doron York
Categories: Case Studies
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CS No. 050609 – Non-Profit The Epilepsy Foundation of Michigan

The Engagement

Coaching the CEO in changing and redesigning the business model to a powerful and profitable one.

The Challenge

After 15+ years serving the Michigan community, the foundation faced one of its most difficult years of operation. The main revenue sources of the foundation – United Way, the U.S.Government, and other third parties – significantly reduced their contribution dollars. The foundation executives predicted a huge deficit, and were challenged by how to replace the lost income and leverage corporate dollars.

Moreover, staff morale was at an all-time low.

The Predictable Future

Without intervention and/or re-invention, the foundation would find itself in the following drift:

  • The deficit would continue to grow
  • The United Way’s reduction in its contribution would decrease by 12.5% as opposed to the anticipated 10%
  • The operating deficit would continue to grow
  • Corporate dollars would continue to decline
  • Staff morale would continue to deteriorate
  • The foundation would face the possibility of closing its doors

The Breakthrough Targets were as follows:

  1. Create new sources of revenue
  2. Create a new and innovative business plan
  3. Reduce operating costs
  4. Increase staff morale

The Results

By year-end, the foundation had accomplished the following:

  • (1) The year ended with a surplus instead of a deficit
  • (2) Staff was reduced by 40% over the previous year
  • (3) The foundation touched the same number of lives
  • (4) The foundation created and cultivated relationships with several major local corporations
  • (5) An innovative marketing plan was implemented
  • (6) Four major successful fundraising events were delivered in the last quarter. These events generated over 60% of the overall annual revenue
  • (7) The staff was rejuvenated and was excited about the new future
  • (8) The board became much more active
  • (9) The revenue projection for 2005 was to exceed the target by 15%

What did the client say?

“From the coaching, the most useful take away for me is the shift in my personal thinking about approaching the Foundation as a business. After 15 years in the nonprofit sector, I realized that it is no different than leading and managing a for- profit business. It has made a huge impact on my ability to build business relationships for the future and to exceed our target. I am much more energetic and optimistic than I have been in years.”

Arlene S. Gorelick, MPH – President

The R.O.C (Return On Coaching):

Based on the year end financials, the coaching generated 4 times R.O.I.

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  • About The Company
    PAAR & Company is a global enterprise that specializes in the impossible. We are in the business of coaching corporate leaders in advancing forward those areas that are making an immediate, relevant and positive impact on their leadership presence and that are highly critical to the sustainability of their enterprise.