paul levy Confronting a Corporate campaign Case Study Solution

Background:

Paul Levy a graduate from MIT with the degree of economics and city planner who worked towards the contribution on the improvement of the country. Levy worked at various posts such as the energy policy office, public utility commissioner, executive director of water resources and also as an administrative dean of the Harvard Medical School (HMS).

In 2002, Levy became the CEO of the Beth Israel Deaconess Medical Center (BIDMC) a hospital set up in Boston. BIDMC was performing badly at that time as Levy identified the issues which were due to financial and a poorly and implemented merger. Levy with his skills and knowledge was able turnaround BIDMC condition. The reason was that of the strong cultural changes it brought to the medical centre with an open management system, communication through emails and making collaborative working environment between staff.

Introduction:

Levy had to also make some tough decisions as laying off 500 – 700 employees and selling off the real assets of BIDMC.  But before and after laying off the employees he consulted and communicated with the party members. He even ran blogs and made interesting reading articles on Facebook and Twitter where he made topics regarding BIDMC. The Hospital performed profitable operations from two years while catching up on maintenance, replacement of medical equipment and establishment of the information system.

In the year 2005, Service Employment International Union (SEIU) posed a threat on the BIDMC. SEIU motive was on “improving the lives of the workers and their families by creating a more humane environment.” As it focused around three main sectors such as the healthcare workers, property services and public sector service, it had launched a corporate program on BIDMC. The aim of the corporate program was to target BIDMC to resist unionisation or force it to bring significant changes that will give the union the upper hand.

The power that SEIU has on conducting such sort of campaigns is through by jeopardising the relationship of the company’s stakeholders, customers, lenders, investors, patients, politicians and others which would have an impact on the financial performance of the company. Due to the weak financial performance, poorly merger decision, being a Harvard-affiliated and having no union, the SEIU desired to gain control of the company’s union through either power or persuasion. The SEIU corporate campaign could target the related BIDMC groups such as, its board of directors, faculty, trainees, nurses, staff, health centres, politicians,the press and also being a Jewish medical centre.

Problem Statement:

The problem and challenges which are faced by the BIDMC that the SEIU launched a “corporate campaign” against the company in hopes to gain control of its structure and also gaining an upper hand of the company. For the success of the corporate campaign, the SEIU would constitute National Labour Relations Act (NLRA) in which the 30% employee acceptance on the petition would help them win the corporate campaign and also the BIDMC management signing of the “neutrality agreement” as not to interfere with the workers.

Analysis of the case

After reading the case and seeing how the economic and political factors are influencing the BIDMC, the best tool to apply would be the use of PEST on which the external factors impacting the BIDMC are the Political, Social, Economic and Technological effect.

PAUL LEVY CONFRONTING A CORPORATE CAMPAIGN Harvard Case Solution & Analysis

PEST

Political

As the SEIU desired to gain control of the medical centre labour operation, it had the control of the political factors which had an influence on the BIDMC. The SEIU has previously helped many of the politicians regarding their elections campaigns by supporting them financially and logistically. This had helped the SEIU to gain control of the politicians which could make changes to the laws, regulations, supervisory authority, permitting power and other factors which would help SEIU gaining the upper hand to BIDMC.

Economical:

The economic factor which puts the BIDMC at a disadvantage as the number of unemployment increases, this causes the SEIU to be more aggressive in terms of gaining control of its labour operations. As the SEIU motive was on improving the livelihood of its workers and their families by creating a more humane environment, the country bad economic condition would generally make SEIU use every option they have to reduce BIDMC control of unionisation....................

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