Business Planning Progress Report

1. Business Planning Progress Report Girl Scouts in the Heart of Pennsylvania October , 2009

2. Background Purpose • GSHPA launched a business planning effort in August because the Council needs a financial turn-around. Presenting Problems • Apparent deficit; growing annually • Declining membership and volunteer numbers • Credit line use higher than preferred

3. Guiding Principles • Girls First ---The goal is to have what’s best for the girls and the volunteers that support them foremost in decision-making. Each business decision must be aligned with “Girls First”. • Assume change—Assume no sacred cows. Everything is on the table. • Streamline—Simplify, consolidate, create ease of use for pretty much everything • Market—A multitude of activities is offered programmatically with limited marketing and marketing strategy; target best offerings and market or package these; aim at increased usage of fewer options.

4. Guiding Principles, cont’d. • Multi-year solutions--Recommendations will include short (6-12 months), mid term FY11 & 12, and long term FY 12 and beyond. • Transparency—Open communication, clarity about the intentions of the plan and the process of planning and frank talk with the players will be the “culture” we will model during the business planning process (and beyond) • Modernize—Go virtual, use technology and tools used widely. More stuff online; more stuff automated. • Use Best Girl Scout practices—Draw from best practices from successful Councils; adapt what is known to work • Non-cookie oriented solutions—The IRS and the national GS organization have a cap on ratio for cookie sales to budget; scenarios past FY10 must be in compliance with regulations.

5. Business Planning Components • Fast tracked stakeholder input on priorities and vision to guide planning. • Fiscal data fact finding; created single true picture. • Recommended roadmap toward fiscal stabilization

6. What are we learning?Stakeholder Analysis: Data Collection Girls: Online Survey (1,160 responses), Focus Groups (5) Volunteers: Online Survey (741 responses), Focus Groups (2) Delegates Meetings, Oct. 12-20: Will be opportunity for volunteer feedback on emerging plan Staff: Focus Groups (5) United Way Executives Coming up, third week of October Board: Sept. 1 Board Meeting, Online Volunteer Survey Cross Section: Strategy Team Retreat, Sept. 12: 20 people

7. What are we learning?Stakeholder Analysis: GIRLS In your opinion, how do you think we can get more girls involved in Girl Scouts? • Fun Activities • Publicity In your opinion, what would make more girls want to attend our resident camps? • Affordability • More fun activities • Modernize facilities • Publicity Top Program Theme Choices • Leadership and Self Esteem • Health and Wellness • Community Service • Environment

8. What are we learning?Stakeholder Analysis: VOLUNTEERS Want: • Excellent customer service • Flexible store hours or fast delivery of materials • Flush toilets, showers, and outdoor expertise at camps • Streamlined, consistent communications from Council Like: • Leadership & Self-Esteem, Health & Wellness, Community Service (top theme choices)

9. What are we learning?Stakeholder Analysis: STAFF Want: • More flexibility and less work overload • More marketing/pr • To be trusted and to have more input in decisions affecting “the front lines” Like: • The idea of giving better customer service • View work with volunteers as crucial to getting more girls – want to be better organized

10. What are we learning?Stakeholder Analysis: Key Points of Agreement • Camps are under-resourced • Great customer service is key • Ramp up internal and external communications to recruit and retain girls & volunteers

11. What are we learning?Financial Overview

12. What are we learning?Financial Overview

13. What are we learning?Financial Overview

14. Closer Look: Office Facilities • Excess office space. Examples: • Hazelton Office.5,090 sq. ft., 7 staff, annual exp. = $100,000. • York Office has 15,000 sq. ft., 13 staff, annual exp. = $85,000. • Scranton Office, 6,778 sq. ft., 8 staff, annual exp. = $100,000 • Leases are a financial drain • Office operations do not meet customer service needs • Troops and SU’s generally do not meet at offices • Staff tries to “cover office hours” and also work with volunteers on nights and weekends

15. Closer Look: Offices CHOICES UNDER CONSIDERATION • Downsize office space • Sell office space • Establish satellite office model

16. Closer Look: Retail/Stores • Ineffective retail operations • 68% of Sales done in Sept/Oct/Nov & Mar/April/May; resources don’t match peak time needs • Web site is very basic, not engaging and limited product offerings • Low tech – inefficient – labor intensive process to fill on line orders and customer needs • Stores in each regional office not open evenings and Saturdays when volunteers need to make purchases. • Retail sales do not fully cover the true cost • FY 2009 net revenues $200,000+; expenses and staff $205,000-$255,000. • Council assets tied up in unproductive inventory • Est. $500,000 inventory (physical inventory reconciled 10/15/09) spread across 7 locations: not enough on hand by item for volunteer needs. • High rate of inventory shortage (10% - 12% from last physical inventory) • Est. 25% -30% of the inventory ($100,000 - $150,000) is in fashion T-shirts and gift items not selling

17. Closer Look: Retail/Stores CHOICES UNDER CONSIDERATION: • Consolidate stores to fewer locations • Develop online business with speedy delivery • Develop and implement traveling trunk with delivery van

18. Closer Look: Camps • Camps are under-resourced. Examples: • FY 2009 budget constraints resulted in limiting activities i.e. no horseback trail riding only corral riding, pool closed at Small Valley and resident camp rotated in 4 week intervals between 4 camps • Camp facilities are not modernized (flush toilets, hot water showers, etc.) • Necessary capital expenditures for camp improvements and safety requirements have been deferred for multiple years. Current capital needs at camps = Capital needs at camps = $2,178,920* • Camps are under-utilized. Examples: • 80 % of the 2009 camp usage was in 7 camps • 85 % of 2009 camp usage was for troop led activities (excluding day camp) • Fewer that 10% of girl members attended resident camp • 44% of the total membership girls participated in some kind camp centered activities *Long Range Property Task Force Report

19. Closer Look: Camps CHOICES UNDER CONSIDERATION: • Discontinue use of and/or sell some camps • Use proceeds to invest in program and capital improvements at other camps • Pursue harvesting of natural resources, cell tower leases and conservancy

20. What Are We Learning?Key Findings • Lack of financial accuracy and transparency • Overextended and ineffective operations draining resources • Organizational issues contribute to difficult GSHPA climate

21. Where Are We?Critical Issues • Income and financial information inadequate to support GSHPA • Council credibility low • Membership declining • Under-utilized, under-resourced camp properties • Council post merger disarray

22. DISCUSSION • What surprises you? • What concerns you? • What did we miss?

23. Where do we want to go?Emerging Vision • Excellent Customer Service. A focus on creating a customer service culture for all our constituents, with particular emphasis on streamlining and consistency in supporting the volunteers. • Signature Programs. The Council will concentrate upon excellent, fun programming – especially affordable, Council-wide Girl Scout programs that girls can’t get anywhere else. • Great Camps. Go from good to great in outdoor programming by investing in modern facilities and outdoor expertise at key camps. • Higher Visibility. Raise the visibility of Girl Scouting through strategic marketing and public relations campaigns.

24. Where do we want to go?Business Plan Goals • Strong financial foundation. • Integrated customer service oriented culture. • Increased membership through integrated, focused council-wide programming attuned to the needs of girls

25. How will we get there? • Step up fundraising. We are beginning a comprehensive annual campaign with opportunities for leadership gifts and sponsorships for individuals, foundations and corporations. • Use smaller, less expensive office facilities. We will save money over time through becoming less dependent on larger office facilities. We will phase in smaller offices and sell property in order to relocate to less expensive facilities. We’ll create flexible space that can be used for Service Unit or troop meetings. • Reorganize the sale and distribution of essential Girl Scouting materials. We can move toward profitability with better online shopping, speedy delivery, and consolidation of our store operations. • Invest in modern facilities and outdoor expertise at key camps.We will study the revenue-generating potential of all camps and make further decisions about the rental or sale of camp property and resources. Revenue raised from camp property will go to improve and maintain camp property and to deliver camp programs.

26. Next Steps • Prepare five-year forecasts to understand the financial impact of implementing these strategies. • Budget for the current year. • Decisions and additional planning

27. Our commitments to volunteers • We understand that you are the key to delivering Girl Scouting to the girls. • Excellent customer service means supporting volunteers with the appropriate materials, training, information and resources you need to work effectively with girls in a timely and consistent manner. • We will continue to involve volunteers in decision-making about the direction of the Council. • We do not anticipate changing our regional structure. • We are committed to careful planning and to making orderly, clearly-communicated changes.