1.

Evaluate 2x2 Matrix

Korpela and manager do not get along
 Has become very good friends with someone in the workers compensation board
 The RRC shall be independent from the LCC - look at this charter in the case
 A lot of stuff that is negative for organizational health
 Non-profit organization
 Noticed that few of the other employees had any professional managerial training
 No one could manage

Korpela recommended some solutions but manager basically said thanks but no
 He is frustrated and other employees are frustrated
 Noticed that few of the other employees had professional managerial training
 No one could manage

Organizational structure
 “Stovepipe” model does not support project-type work
 Lack of communication between departments and research teams
 Need project managers to liaison among all areas of organizations
 Will decrease inefficiencies

 RRC was not an essential service to the government

 WCB operating successfully without it prior to 1990s
 Possible scenario: pulling the plug (many employees expected this)

 Id say current RRC is in the third quadrant being a troubled organization. There is a
 miscommunication between the board of directors and the employees on the
 companies business strategy.
 Company also operating at a loss currently and is relying on a grant from WCB to stay
 afloat which at this period in time is in question

2. What is the potential liability to Korpela and RRC if he were to unilaterally leave RRC after six
months of his one-year contract? Tool #E12 identify and compare Stakeholder Interests.
1. John Korpela:
 Career Advancement: Korpela may be interested in career advancement and the
opportunity to gain valuable experience in a managerial role.
 Financial Compensation: His compensation and financial well-being are significant
interests, including whether he would face penalties or financial consequences for early
termination.
2. Rehabilitation Research Centre (RRC):
 Organizational Stability: The RRC's primary interest is in maintaining its stability,
ensuring the continuity of its operations, and achieving its mission of reducing work-
related disability.
 Financial Viability: The RRC is concerned about its financial health, which includes
diversifying revenue sources and avoiding unnecessary financial penalties.
  Maintaining Reputation: The RRC may be interested in maintaining its reputation and
credibility, especially in the context of a value-for-money audit.
3. Rob Simon (General Manager of RRC):
 Meeting Organizational Goals: Simon is likely interested in ensuring that the RRC meets
its organizational goals and objectives.
 Effective Leadership: He may be interested in ensuring that the organization has
effective leadership, including Korpela in his role as Coordinator of Business
Development.
4. Workers' Compensation Board (WCB):
 Effectiveness of Rehabilitation Programs: The WCB's primary interest is in the
effectiveness of rehabilitation programs, as the RRC is involved in assessing and
improving these programs.
 Financial Responsibility: The WCB is concerned about its financial responsibilities,
including the costs of rehabilitation services.
5. Government of Ontario:
 Budgetary Control: The government has an interest in controlling the budget, reducing
deficits, and ensuring fiscal responsibility.
 Value for Money: It is interested in ensuring that public funds are spent efficiently and
effectively.
6. Employees of RRC (Researchers and Staff):
 Job Security: The employees at RRC are likely interested in job security and the
organization's financial stability.
 Maintaining Research Activities: Researchers may be interested in the continuation of
their research activities and projects.
7. Insurance Companies and Private Organizations (Potential Clients):
 Access to Research: These organizations may be interested in gaining access to the RRC's
research findings on topics like back pain to improve their own practices.
 Financial Agreements: They are concerned about the terms of financial agreements for
research contracts.

3. Why would RRC invest $400,000 into a trust fund? (Hint: Consider Tool #S2: Organizational
Performance.)

Investing in a trust fund could serve various purposes, such as generating income, saving for future
needs, or ensuring the funds are managed and protected. Without further details, it's challenging to
determine the exact motivation behind this investment.

4. What is the Net Liquidation Value?

5. Evaluate Korpela’s Diamond-E report.

1. Economic Dimension: This dimension focuses on financial and economic factors. It involves
assessing an organization's financial health, budgeting, resource allocation, and overall economic
sustainability. Key questions in this dimension include:
  What is the organization's current financial status?
 How effective is the budgeting and financial planning process?
 Are there financial risks or opportunities that need attention?
 What strategies can be implemented to improve economic stability and growth?
2. Employee Dimension: The employee dimension centers on the organization's workforce,
culture, and human resources management. It involves evaluating the organizational structure,
employee engagement, and talent management. Key questions in this dimension include:
 How well is the organization structured to support its mission and goals?
 What is the level of communication and collaboration among teams and departments?
 Are employees motivated and satisfied with their work?
 How can human resources practices be improved to enhance productivity and morale?
3. Efficiency Dimension: Efficiency dimension pertains to the operational processes and workflow
within the organization. It involves examining how tasks are executed, identifying bottlenecks,
and optimizing processes for greater efficiency. Key questions in this dimension include:
 Are there formalized business processes in place, and are they being followed?
 Where are inefficiencies and redundancies in daily operations?
 How can processes be streamlined to save time and resources?
 What tools or technologies can be implemented to improve efficiency?
4. Entrepreneurial Dimension: The entrepreneurial dimension focuses on innovation, adaptability,
and the ability to seize new opportunities. It includes understanding and responding to market
dynamics and evolving customer needs. Key questions in this dimension include:
 Does the organization have a clear understanding of its customers and stakeholders?
 How well is the organization positioned to adapt to changes in the market or industry?
 What strategies can be implemented to foster innovation and entrepreneurial thinking?
 Are there opportunities for collaboration or diversification to enhance growth and
sustainability?

6. What are the pros and cons of each alternative?

 Funding is disappearing
 Doing world-class research
 Decrease funding Pro: could cause dramatic shift in revenue structure and force
 RRC to generate more revenue through different outlets, and eventually become
 self-sustained. Con: major cuts in research funding, company would have to
 downsize
 - Increase funding: Pro: More capital to invest in R&D aswell as revenue streams
 Con: rely on funding and therefore overlook huge profit potential through
 korpelas suggestions In the diamond-E
 - Remove funding: Pro: none Con: company liquidation, job losses, valuable
 reserch to WCB gone
 - No change: Pro: company doesn’t dissolve, given second chance to restructure
 and become self-sustained con: company still in bad position, lot of work ahead

1. "Pulling the Plug" (Shutting Down):

 Pros:
 Immediate cost savings: Closing down the RRC would eliminate ongoing operational
costs.
  No further financial obligations: The organization would no longer be a financial burden
on stakeholders.
 Cons:
 Loss of valuable services: The RRC's expertise and services in rehabilitation research
would no longer be available.
 Job losses: Employees of the RRC would face unemployment.
 Potential negative impact on stakeholders: The closure could lead to dissatisfaction and
potentially legal issues with stakeholders.
2. Privatization:
 Pros:
 Potential for increased efficiency: Private entities may bring business acumen and
efficiency to the organization.
 Revenue generation: Privatization may lead to income generation and reduced
dependence on government funding.
 Cons:
 Shift in mission: Privatization may prioritize profits over the RRC's original mission.
 Reduced transparency: Private entities may not be subject to the same level of public
scrutiny.
 Job security concerns: Employees may face job insecurity or changes in working
conditions.
3. Value-for-Money Audit:
 Pros:
 Improved efficiency: The audit may identify areas for cost savings and operational
improvements.
 Evidence-based decision-making: Recommendations from the audit could lead to data-
driven changes.
 Cons:
 Budget cuts: The audit could result in budget reductions and potential service
disruptions.
 Organizational upheaval: The audit process may disrupt the organization's operations.
 Uncertainty: The audit results could lead to an uncertain future for the RRC.
4. University Collaboration:
 Pros:
 Access to academic resources: Collaboration with universities could provide access to
research expertise, facilities, and funding.
 Enhanced research opportunities: The RRC could benefit from academic partnerships to
advance its research agenda.
 Cons:
 Administrative challenges: Collaborative efforts with universities may involve complex
administrative and governance structures.
 Alignment of interests: Balancing the objectives of the RRC with those of academic
partners may pose challenges.
 Funding uncertainties: Relying on universities may still require securing external funding.
5. Independent Business:
 Pros:
 Revenue diversification: Becoming an independent business allows for diversification of
income streams.
 Self-sustainability: The RRC could become self-sustaining without heavy reliance on
government funding.
 Cons:
 Risk of profit prioritization: Focusing on profits may shift the organization's mission and
values.
 Market competition: The RRC would face competition from other businesses in its field.
 Initial financial challenges: Transitioning to an independent business model may require
initial investments and time to establish revenue streams.

7. What should Korpela do personally?

1. Review Employment Contract: First, he should thoroughly review his employment contract with
RRC to understand the terms, conditions, and any potential liabilities or penalties associated
with early termination.
2. Communicate with RRC: Korpela should have an open and honest discussion with RRC
management, especially with Rob Simon, the General Manager, to express his concerns and
intentions. This communication can help clarify expectations and explore possible solutions.
3. Assess Personal Goals: Korpela should assess his personal and professional goals and priorities.
He should consider whether continuing with the RRC aligns with his career objectives, values,
and long-term aspirations.
4. Seek Legal Advice: If Korpela is uncertain about the legal implications of leaving the RRC before
the end of his contract, he may want to consult with legal counsel to understand his rights and
obligations.
5. Evaluate the RRC's Future: Consider the RRC's future prospects and potential impact on his role.
He should assess the organization's financial stability, reputation, and long-term viability in light
of the upcoming value-for-money audit.
6. Financial Planning: Given the potential financial implications of leaving early, Korpela should
engage in financial planning to ensure he is prepared for any penalties or loss of income.
7. Alternative Opportunities: Explore potential alternative job opportunities that align with his
career goals and interests. This could involve networking, updating his resume, and actively
seeking new employment options.
8. Balancing Personal Values: Consider whether the RRC's mission and values align with his own.
Korpela should reflect on whether he believes in the organization's work and whether the
challenges and uncertainty align with his personal values.
9. Decision Making: After careful consideration of all the factors and potential consequences,
Korpela should make a well-informed decision regarding his future at the RRC. This decision
should align with his personal and professional objectives.
10. Exit Strategy: If he decides to leave the RRC, he should work on an exit strategy that minimizes
disruption to the organization and helps ensure a smooth transition for his responsibilities.