™ Strategic Positioning of the MSPCA: * The Next 10 Years William Rafelson, MBA‘09 The Heller School for Social Policy and Management [email protected] * Prepared for Prof. Thomas McLaughlin of Strategic Management CONTENTS 1……………………………………………………………………….INTRODUCTION 2………………………………………………………………STRATEGIC POSITIONS 2.1……………………………………………………………………DEMAND 2.2…………………………………………………………………....LABOR 2.3…………………………………………………………………....FUNDERS 2.4…………………………………………………………………....COMPETITORS 3...…………………………………………………………………....SYNTHESIS 4…………………………………………………………………....CONCLUSION 5………………………………………………………...APPENDIX: SCAN SHEETS 1. INTRODUCTION “Chores are done!” Mr. Luke said to the Emergency receptionist, as he pushed the hand-cart back to his car to pick up the last box. Mr. Luke is a tall, jovial man and self- proclaimed “cheese head,” a Wisconsin-native. Every morning, I imagined, he must wake up at 4:00AM to drive from the cape to the Jamaica Plains hospital by 6:00AM. As we went up the stairs, he noticed a piece of trash on the floor and snatched at it, the way a parent would keep their house. “These used to be scattered exam rooms,” he said, as we walked through the clinical side of the hospital. Now, after a multi-million dollar renovation, the 140-year old humane society had a newer, contiguous clinical care facility with 33,000 square feet of space, not to mention a brand new adoption center that has seen adoption rates rise as a result. The Massachusetts Society for the Prevention of Cruelty / Angell Memorial Hospital (MSPCA-Angell) was founded in 1868 by George T. Angell, who, after hearing of two horses that were raced to their death, proposed anti animal-cruelty legislation in Massachusetts. With the support from figures such as John Quincy Adams and Ralph Waldo Emerson, the MSPCA’s actions inspired many others states to form humane societies and pass anti-cruelty legislation. 1 Over the many years, the MSPCA has played a federal role in animal advocacy, while maintaining mostly a local role in animal care. Caring for more than 250,000 pets, however, it is arguably the most high-yield humane society in number of animals treated than any other, including the ASPCA. For the following pages, we will create a strategic position for four relevant factors: labor, funders, competitors, and demand. Within each factor, we will note the important role that geography plays, and incorporate this into MSPCA-Angell’s strategic position for the next 10 years. With hard thinking and hard work, the organization will hopefully transcend as the leading group for direct service and advocacy for animals. 1 “George Thorndike Angell: A vision unfolds.” MSPCA-Angell Website. http://www.mspca.org/site/PageServer?pagename=aboutus_History_George_Thorndike_Angell 2. STRATEGIC POSITIONS 2.1. COMMUNITY NEED / DEMAND The epidemic of animal overpopulation, combined with the lack of pet owners adopting, is truly heartbreaking. Each year, 3-4 million of the millions of sheltered dogs and cats are euthanized because no home can be found for them. Although a portion of these animals are sick or aggressive, many are loving animals that are perfectly adoptable. 2 This is morally as well as financially tragic, as these animals could have “expanded out” the pet owner and animal care economy: a pet euthanized is a pet that could have brought over $200 per year to a facility such as MSPCA-Angell. 3 With owners lavishing more and more on their pets, the MSPCA-Angell can position itself to be the one-stop shop for its clients: adoption, food, medical care, grooming, and boarding. The owner who comes into MSPCA-Angell to adopt a pet should be informed about the various other services at the hospital, and should perhaps be offered a discount for the first year to incentivize the initial adoption. A recent Boston Globe article reported that nearly 1 out of every 5 animals given up by owners to the MSPCA were due to landlord restrictions. 4 It is in the MPSCA- Angell’s financial as well as moral interest to advocate for pet owner’s rights in Boston. If the organization does not cultivate pet ownership in the city, its support will be diminished. The MSPCA-Angell could even advocate for legislation that would incentivize both tenants and landlords to help adopt animals, perhaps through the tax code. Finally, the MSPCA commands a national reputation and international presence, but its direct care services are limited to Massachusetts. If the MSPCA-Angell truly wants to compete with ASPCA and other national organizations for funding, it must take on a greater role in direct service. The organization should screen for a city with private wealth and a dearth of both private practitioners as well as an established humane society. The organization could “be” a national leader by “doing” what the ASPCA is criticized for failing in: direct service at a variety of locations across the country. 2“The Crisis of Pet Overpopulation.” The Humane Society of the United States. http://www.hsus.org/pets/issues_affecting_our_pets/pet_overpopulation_and_ownership_statistics/the_crisi s_of_pet_overpopulation.html 3“U.S. Pet Ownership Statistics.” The Humane Society of the United States. http://www.hsus.org/pets/issues_affecting_our_pets/pet_overpopulation_and_ownership_statistics/us_pet_ ownership_statistics.html 4 Boston Globe. “Please, No Pets.” 2.2. LABOR The MSPCA has both significant challenges and opportunities with its labor force. Centered in Boston, a Mecca for students, it can easily attract hundreds of bright, young volunteers. However, there is a shortage of essential staff, especially veterinary technicians. In a personal interview with Carter Luke, CEO, he mentioned that a significant number of them were leaving for private practice positions that, although offered fewer tuition and health benefits, gave them a higher take-home pay. There are two opportunities for the organization to help strengthen its technician workforce: increased marketing of its benefits through HR and introducing a flexible benefits program (the two are not mutually exclusive). If technicians are granted flexibility, and can trade in certain holidays or days off for more pay, then perhaps management can halt their leaving to primary care. For example, management might even be able to market a “range” of salaries for the technicians, arguing that if they maximize the number of days worked and opted for fewer benefits, they could make anywhere between $17 to $22 per hour. Additionally, Human Resources should market the benefit of tuition reimbursement, and provide technicians with a database of local continuing education programs that are acceptable. Proper surveying of the technicians’ needs is necessary: do they desire to pursue business degrees or finish their Bachelor’s? With greater information, Human Resources can respond quickly to the change of tastes in the workforce. To attract new technicians, the organization now knows of each of the 9 schools that train veterinary technicians in New England. Greater marketing of opportunities at MSPCA-Angell at these sites can help ease the effects of the technician shortage. Finally, according to data from the Department of Labor, animal technicians at hospitals are generally paid more than those in private practice, and thus may expect a higher pay due to the extensive services they provide. 5 MSPCA-Angell may need to respond to the market by increasing technician compensation. With respect to the volunteer population, the MSPCA-Angell can capitalize on the demographics of Boston by offering a formalized program for pre-veterinary and - medical students, as many seek medical and community service experience throughout their four years. A more formalized program, such as that based on Brigham and Women’s Medical Exploration Program, could help attract volunteers at a relatively low cost. 5 “Veterinary Technologists and Technicians.” U.S. Department of Labor. http://data.bls.gov/oes/datatype.do 2.3. FUNDERS As Mr. Luke pointed out in the interview, donors’ expectations continue to rise. Instead of blindly giving to charities, more donors wish to see their name attached to the gift, and have some ability to manage exactly where it goes. While the high-yield donors can easily have a wing or building named after them, it is harder to show something tangible to the donor who merely gives less than $250. Unless the MSPCA innovates as the ASPCA has (i.e., offering a membership for low-yield donors), it may fail to capture a significant portion of public support. The Center on Wealth and Philanthropy at Boston College is an excellent source for estimates of donation in the Boston area and elsewhere. Reports from the center have estimated that as much as $1.3 trillion of wealth will be transferred between generations in the Boston-area by 2055. Additionally, the center has found that volunteers are two to four times more likely to donate to a charity than non-volunteers. 6 7 Given these and other statistics, the MSPCA-Angell must position itself over the next 10 years to become the primary choice for bequests and donations for older, wealthy, baby-boomer animal lovers. One strategy would be to recruit more volunteers who fit the demographic of high-yield donors. Between 2005 and 2006, the organization has found that increasing its geographic scope with fundraisers has increased public support. The organization should continue to hold state-wide events, and perhaps lead a New-England-wide event. Finally, more support can be found online. MSPCA-Angell has the opportunity to start a national initiative for animal welfare, in the manner that Eric Ding of HSPH did for cancer research and the Brigham and Women’s Hospital. More customized and focused electronic fundraising will help maximize support while minimizing cost. 6 Havens, et al. “Wealth Transfer Estimates: 2001-2055: Boston Metropolitan Area.” Center on Wealth and Philanthropy. Boston College. November 7, 2005. www.bc.edu/research/cwp/meta- elements/pdf/bostonwte.pdf 7 Havens, et al. “Charitable Giving: How Much, By Whom, To What, and Why.” http://www.bc.edu/research/cwp/meta-elements/pdf/charitablechapter.pdf 2.4.