American Heart Association Case Analysis
Competitive Strategy and Operational Goals
Since 1924 the American Heart Association has been very successful in raising funds, sponsoring research, and spreading awareness of the causes and consequences of stroke and heart disease. In 2006 in support of their mission statement “Building healthier lives, free of cardiovascular diseases and stroke”, the AHA announced a new strategic goal of increasing their total revenue from $600 million to $1 billion in order to reduce the death rate from coronary heart disease and stroke by 25 percent by 2010. In order to achieve such a lofty goal, the AHA acknowledged the need to identify and develop a differentiated workforce that would be able to carry out the strategic intent of the organization by shifting their focus to attracting, selecting, and retaining top talent through strategic investments.
The optimal scenario of the AHA would be to have a differentiated workforce that would consist of identifying "A" players and "A" positions throughout the organization where wealth or value is created to contribute to the bottom line of generating the billion-dollar goal by 2010 and placing those players in all positions throughout the organization. However, the reality is that the best action for the AHA due to budgetary and time constraints is to make strategic investments in the workforce that will have high impact and drive desired results by putting the right people in the right places and not the right people everywhere. The AHA did this by creating a new talent framework driven by eight operational goals to help build the foundation for how they will identify their "A" players and positions for strategic investment. The objectives are as follows:
• Identify the key strategic capabilities needed to deliver on the AHA strategic plan
• Develop an association-wide workforce strategy
• Implement workforce differentiation and the strategic position concepts to ensure that talent is used effectively to execute strategy
• Develop a new approach to goal setting, performance management, and incentives, and a methodology for rating and ranking staff in key positions
• Develop and market an AHA employment brand
• Identify ways to better integrate HR staff at senior levels, permitting HR to better understand and contribute to the association's business strategy
• Identify future HR skill sets necessary in the workforce.
These operational goals along with a new workforce philosophy changed the way in which leadership viewed the organization and did business by creating a top grading equity model for workforce management by which jobs were differentiated by investment and how they impacted the AHA’s strategy.
Creating Value for Key Constituents
The American Heart Association creates value for its key constituents corporations, individual donors, and foundations by leveraging their...