A CASE REPORT

ON
ROCKY MOUNTAIN
MUTUAL

Group 8
Akash Jain – 2210003
Arzoo Goyal – 2210015
Shubham Solanki – 2210055
Supriya Mantena – 2210063
Yogesh Yadav - 2210072
SITUATIONAL ANALYSIS
&
PROBLEM STATEMENT

• Growing Insurance company

• HQ in remote suburban area in Utah

• Arguments both for & against the fitness center

• Conflicting situation between costs and productivity

• Keep Fitness Center

• Replace it with New Office space

• Decision Need to be made

2
 OBJECTIVES OF THE COMPANY

Short Term Long Term

• Productivity • Employee Well-Being
• Attract Young Employees • Growth of the Company
• Expenses Reduction

CONSTRAINTS CRITERIA
• Space Constraints • Cost to Company – Quantitative
• Financial Constraints • Productivity – Qualitative

3
 OPTION
S

1. Keep the Center up & running

• Encourage the employees to utilize the fitness center

2. Close the Center

• Adapt the space for the growing Corporate IS Dept.

4
 EVALUATION OF OPTIONS

OPTION 1 – Keep the Center Open OPTION 2 – Close the Center

• Present Scenario: • Savings in cost = $ 100,000
• Maintenance cost – $ 100,000 • Increase in Medical expenditure = $ 22,400
• Medical cost saving - $ 22,400
• Net savings = $ 76,600
• Net cost = $ 76,600
• 50% drop in absenteeism • Cost of Adaptation of Center to Office Space
• 18% increase in productivity • Low morale of 35% employees
• 5% decrease in sick days
• Decreased Productivity
• Optimistic Scenario: Firmwide Rollout of Wellness Program
• Increased Absenteeism & sick leaves
(60% : 20% : 20%)
• High turnover of employees
• Maintenance cost: $ 100,000
• Medical cost saving - $ 50,000 • Unable to attract young talent
• Net cost = $ 50,000 • No other facility available in proximity
• Increased Productivity
• Boosted Employee Morale
• Decreased sick days & absenteeism
• Increased usage of the Fitness Center
5
 RECOMMENDATION
OPTION 1 – KEEP THE FITNESS CENTER OPEN

• As the number of employees will be increasing, the net cost will be reducing
• The only company to provide such facility – Distinctive Advantage
• Increased Employee Morale, Productivity & Retention
• In-Line with the Insurance Industry to promote well-being
• Ability to market it and attract young talent for the growth of the company

6
ACTION PLAN
• Roll out the Wellness Program to the entire organization
• Aim is to increase the number of employees using the center
• Form support teams to encourage each other to exercise
• Emphasize on the importance of health & well-being
• Introduce ‘Follow what you preach’ mentality as an insurance
company
• Weekly Leaderboard to develop a sense of healthy competition in
terms of achieving their personal fitness goals
• Organize competitions in the center, for example, swimming race

7
 CONTINGENCY PLAN

Reduce the size of center in proportion of usage

• Reduce the area occupied by the fitness center

• Keep as much equipment as necessary for 35% of the employees
• Use the excess area for the new Corporate IS Department
• This will result in reduced costs as well as employee satisfaction
• Keep the mini gym in such a way that the cost saved on medical
expenses = maintenance cost of reduced gym area
• This cost, at present, comes out to be $22,400

8
ANY QUESTIONS?