Vancity: On Top of Its Game

1. Vancity is a very successful organization as defined by a number of business criteria. Apply the principles stated in the section “Working Today” to describe why Vancity has achieved this distinction.
Vancity understands that getting extraordinary results from their employees requires effort not only from their employees, but also from the organization. They are an accurate representation of what you call an intellectual capital as they consistently maintain a healthy and committed workforce by providing a comfortable and friendly environment for their employees. At work, their employees are able to complete tasks while simultaneously listening to music and enjoying the benefits of dressing casually. Their organization is represented by many unique intelligent individuals that are given the luxury of making a schedule that best fits their needs. This helps to maximize their potential as they are able to work stress free as there is a healthy balance between work and their other commitments. Providing a stress free and flexible environment helps to get the best results from each of its employees. There is a famous quote, “do what your doing when your doing it”, this will help you to accomplish tasks in effectively and Vancity does a great job at providing an environment where distractions are limited and productivity is high. 2. Describe how Vancity creates value for the customer using Figure 1.2. Follow one aspect of Vancity’s service to the customer through this model.
Vancity is a credit union that offers an innovative approach for its customers, introducing different ideas and concepts that meet the needs of it members. It utilizes its people and money to focus on environmental and social sustainability. By taking advantage of its healthy financial position, it used traditional media to market directly to the gay and lesbian community in effort to advertise their welcoming nature. In addition to this, they were also the first financial institution to offer mortgages to women (indicates they are a supporter of social change). They were also the first American credit union to revive an R1 rating from the Dominion Bond Rating Service, and the fist financial institution to offer its own socially responsible mutual fund.

3. Figure 1.3 helps to determine a company’s productivity using the criteria of effectiveness and efficiency. Describe Vancity’s productivity using this model.
Despite its exceptional work environment, the Human Resources (HR) department encountered some problems when taking their cooperative surveys. After the surveys were taken, it was concluded that it did not meet its employee engagement targets in three consecutive years. This appeared to be a significant issue as Vrooman states that the “Executive Leadership Team’s compensation is tied to achieving this significant stretch target, reflecting how important it is we improve employee engagement and their pivotal role and responsibility in making this happen.” Pursuant to the first disappointing survey, a focus group had been held consisting of 120 employees. They shared concerns claiming that individual goals were not consistent with the organization’s objective; work processes, tools, and resources were not aligned to improve efficiency. It was also concluded that managers did not have adequate resources to manage performance efficiently and effectively. Although their goals were not achieved, it did not result in wasted resources as they achieved organizational success efficiently but did not effectively meet their goals of employee engagement. In effort to resolve this issue, Vancity would increase investments in (1) training and development, (2) improving the organizations IT infrastructure, (3) and provide employees with growth opportunity by focusing on new eras. Despite failing to meet their goals, they implemented new plans to help meet their objectives to make their company not only efficient, but, effective.

4. Use Figure 1.4 to describe the driving forces from the general environment that has an impact on Vancity. Describe the overall strength of the driving forces on a scale of 1 to 10
Economic Conditions (10) - With innovative technology, globalization is inevitable for a high performing company such as Vancity. A huge part of their success is directly related to their values-based decision making. In all of their actions, ethics plays a major role in how they solve problems because this level of open minded thinking appeals to its members. Company CEO states that despite their expansion in different geographic regions, they need to keep the thing that differentiates them from other successful banks, and that is local decision making. She claims their biggest challenge will be to “keep the credit union niche while they grow.”
Technological environment (5) – In effort to improve the performance of its employees, it has renewed the organizations Information Technology (IT) structure.
Natural Environment (10) – Vancity pursues a corporate social responsibility approach. They do this by providing funds and grants to the community, its members, and programs that benefit the greater good such as (1)Shared Success (gives a portion of its net profit annually), Just Beginnings Flowers (non-profit florist), and Pigeon Park Savings (provide banking services to the poor).
Socio-Cultural Environment (10) – Upholds its ethical values throughout all decisions.

5. Determine the stakeholders and their influence on Vancity by applying Figure 1.5. Use a scale of 1 to 10 with 1 being the weakest influence to determine which stakeholders have the greatest impact on Vancity and the least impact on Vancity. Explain.
Customers: Vancity does an excellent job at meeting the needs of its customers and providing financial services that appeal to a wider range of individuals. They give their customers what they need, and their good at it. It has created a welcoming image to people of all classes, and that is what differentiates them from other top companies in the financial industry. For example, it was the first Canadian institution to 1) offer mortgages to women 2) market directly to the gay and lesbian community. It adapts to changes in the cultural environment and is accepting of all individuals.
Employees: A healthy and committed workforce is a significant part of the great success Vancity has accomplished since its inception. It does not believe in compromise when it comes to its employees. The organization believes that a healthy balance between work and home is essential to achieving extraordinary results. Vancity allows for its employees to choose between various work hours so they can maintain a healthy balance in all aspects of their lives. This has proven to be successful in helping employees to thrive both at work and at home.

6. All organizations experience a degree of uncertainty due to environmental driving forces. Place Vancity in the grid in Figure 1.6. Describe what contributes to the complexity of the environment. What contributes to the rate of change in the environment?
I would classify Vancity to be dynamic and complex. They are in the financial industry where interest rates, consumer demands, and employee needs require great flexibility and adaptation. Vancity provides the image that they do not believe in compromise. In all their policies and procedures, they carry out the plan that is beneficial to its members, employees, and the community in general. In addition to such, they have to be whole minded when carrying out objectives due to their values-based decision making approach. Vrooman claims its members have a significant impact on the decisions they make, this contributes to the complexity of the environment as they need to keep in mind what the consumers want while upholding their own ethical principles in the decision making process. Vancity also needs to maintain a dynamic environment new companies and businesses are always making their way into the market, so, they need to be understanding of what their current and potential clients look for when investing their money or are in need of financial service. It needs to main an open mind when dealing with clients as it will differentiate them from other top and developing businesses.

7. Place Vancity in the grid Figure 1.7. Is Vancity predominately in one quadrant or a number of quadrants? Is there any need for a balance? If so, why?
Vancity is a credit union company that offers multiple financial services to its 492,000 members. It invests the money (resources) it has effectively as it will allow them to provide financial aid to those with aspirations to thrive in the business industry. Its welcoming environment appeals to users within the community as they have created a culture that is a big part of their reputation and is a big player in the success they have achieved. It’s amazing workforce (intellectual capital) conducts daily banking, lending money, and invests in various opportunities for its customers. This helps them to efficiently utilize their resources (money) to get a great return on their investment. It is evident that their resources are being acquired effectively and used efficiently as they have accumulated approximately 17.1 billion in assets. Not only are they a high performing company that seeks the best possible opportunities for its members, but, it gives back a significant portion of its net profits to members and to communities. To date, it has shared a total of 221 million with members and has been distributed in the community as grants. This is a strong indication of their values because maximizing shareholder profit is not their only goal. Their members are a major stakeholder in their organization, this is why so much emphasis and value is placed on pleasing them. Vrooman, the CEO of the organization stated “We’re owned by our members, who have a say in the way our organization is operated and a vested interest in how we do things, and we’re accountable to them to deliver positive financial, social, and environmental returns.” Their goals are measured by the satisfaction of their stakeholders, and to maximize satisfaction, they implement an innovative approach which allows them to understand what their members want so they can implement a plan to provide better financial, social, and environmental returns. Vancity is an organization that requires a balance of all the quadrants as they coincide with one another and are responsible for the great success of this organization.

8. Which management structure do you think applies to Vancity as illustrated by Figure 1.8 or the Figure 1.9? Provide reasons.
Figure 1.9, the upside period displays characteristics and values that support the organizational and management structure of Vancity. Since Vancity’s inception, its most valuable purpose was to create an organization that aided people and communities by lending them financial aid in effort to help them thrive and prosper. It is evident that their customers are the ultimate beneficiaries of the organization’s efforts. This characteristic is indicated and advertised by CEO Tamara Vrooman as she says to the Vancouver Sun “We’re owned by our members, who have a say in the way our organization is run and a vested interest in how we do things.” Vancity also places great emphasis on the training and development of its workforce as it understands that the foundation of an extraordinary organization begins with its employees. Vancity provides its employees with the luxury of aiding the organization in setting policies and procedures that help them to maintain a healthy balance between their work and home life. They do this so they can maintain a healthy and committed workforce because it is the reason Vancity is able to sustain productivity and financial success in a competitive industry. Although the operating workers do the best they can, there are times that organization objectives are not met and alterations are necessary to help them meet company goals. When the company encountered HR challenges, the team leaders and managers held focus groups with 120 employees that expressed concern that individual goals were not consistent with the overall organizational mission. They implemented these focus groups to help resolve this issue and invest in new techniques that will help to provide employees with new training and allow them to develop as individuals.

9. Discuss the management roles at Vancity by applying Figure 1.10. Give two examples of each role from the case.
Planning - Being ranked the top employer in British Columbia, Vancity believes and has proven that a healthy and committed workforce is the key to achieving extraordinary results from its employees. In effort to provide a convenient and comfortable working environment, it allows employees to enjoy business casual dress, listen to music while they work, participate on Vancity sports teams, and attend a host of social events to help expand their horizons. In addition to this, it takes into account that home life can have a significant impact on the work effort and the attitude of an employee. To keep them focused and motivated at work. Employees are given the benefit of various work options (ex., telecommuting, flexible work hours, shortened workweeks, etc.). This aids their employees to keep a healthy balance between their work and home life. By having their full effort at work, it keeps the employees focused and gets the tasks done more efficiently.
Controlling - When the cooperative surveys are done annually, it gives management an accurate report of the performance of the employees and informs them if changes need to be made. When results proved to be less than the expected amount, Vancity took action by forming focus groups consisting of 120 people that expressed concern that organizational objectives were not being met. Through this strategy, they were able to come up with various methods to improve employee performance and help them understand what was truly expected of them. Such actions included investing in training and development, altering IT infrastructure, and provided employees with the opportunity to grow in different aspects of the company.
Leading - Attitude and relationships have a significant impact on the type of environment that is created in the workplace. In effort to inspire its employees to work harder and engage socially, a party was organized to help strengthen the bond between its work force. It was stated that this party was designed to help create energy in the work environment and help people connect. In addition to this, they have implemented programs such as the employee assistance program (EAP) as it allows for personal development and introduces employees to different techniques that will help them to live a healthier life.
Organizing – Since its inception, Vancity has succeeded in its vision to create social change in the community through a number of their programs. It has utilized its employees to complete this objective and continues to do so by giving back a portion of its net profits (approximately 30%) to members and to communities. They do this through a program they created called “Shared Success” and to date it has contributed a total of $221 million to members and the community. In addition to this, it takes its own time and resources and teaches basic financial literacy skills to newcomers to Canada.