Review what you have learned so far about financial management and unexpected change. Also access People First San Diego’s websiteLinks to an external site. and review the sample budget located on the Dashboard.
Recall the video from Week 6 depicting a budget conversation with the People First management team. Imagine that the result of this conversation was that all departments had to scale back due to reduced funding. Consider the following details:
As Director of Clinical Services at People First San Diego, you normally have a budget of $300,000 to fund the Therapy Services department. This money pays for salaries, training, and supplies. However, this number has recently been cut to $230,000 due to a grant being pulled. You may no longer be able to support a team of four master’s-level social workers (whose salaries range from $60,000 to $66,000) and three interns, so you may have to restructure the department. Even though your budget has decreased, in a perfect world, you would still help a similar number of clients. This new, lower budget is not negotiable. What do you do?
Describe how your department or service delivery would need to be adjusted. For example, would you downsize, bring in more interns (remember the hidden cost), reduce hours, decrease professional development or training, or reconfigure the one-to-one therapy model? Be specific about what you would do and explain why.
How would you manage morale through the change? Be specific as to what strategies you would use to keep staff engaged, productive, and motivated.
What would you need from your own manager in order to be successful in leading your team through the change?
By Day 6
Respond to at least two colleagues by respectfully agreeing or disagreeing with their decision. Build on their post by describing an additional strategy to support team morale through the change.
Full Answer Section
Support Needed From My Manager:
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Clear Communication: Ensure my manager is actively involved in communicating the changes and providing support to the team.
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Resource Allocation: Secure additional resources for training and development opportunities for the interns who will be taking on increased responsibilities.
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Emotional Support: Be a source of support for me as I navigate the emotional challenges of leading the team through these difficult changes.
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Advocacy: Advocate for the needs of the Therapy Services department within the organization, advocating for future funding and support.
Success hinges on open communication, collaboration, and a shared commitment to providing the best possible care for our clients despite the budget constraints. We must work together to ensure that this change is a period of adaptation and growth for the entire team.
Sample Answer
Facing the Budget Cuts: Restructuring the Therapy Services Department at People First San Diego
The unexpected cut to our Therapy Services budget presents a significant challenge, forcing us to find creative and strategic solutions to maintain essential services while operating within a reduced budget. Here's my plan:
Restructuring the Department:
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Downsizing the Team: With a $70,000 budget reduction, maintaining a team of four full-time masters-level social workers is unsustainable. To address this, I propose the following:
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Reducing Full-Time Staff: Lay off one full-time social worker. This is a difficult decision but necessary to align with the new budget.
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Promoting Interns: Offer two interns full-time positions, potentially with a slight salary adjustment. This leverages the existing skillset of the interns while providing them with valuable professional experience.
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Reducing Hours for One Social Worker: Reduce the hours of one remaining social worker to part-time (possibly 20 hours per week) to maintain their expertise while minimizing salary costs.
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Reconfiguring Therapy Model:
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Group Therapy Sessions: Introduce a new group therapy model for specific client needs. This allows us to serve more clients with fewer therapists, leveraging the expertise of our remaining staff more efficiently.
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Reduced Individual Sessions: Offer shorter, more targeted individual therapy sessions for specific issues. This can optimize resource allocation and ensure greater access to services.
Managing Morale:
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Transparency and Communication: Openly and honestly communicate the reasons behind the budget cuts and the restructuring plan to the entire team. Ensure regular updates and address concerns openly.
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Employee Engagement: Host a team meeting to discuss the changes collaboratively. Solicit input from staff on how to make the new structure work effectively.
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Empathy and Support: Acknowledge the emotional impact of the changes and provide individual support to those affected. Offer outplacement services and resources to those who are leaving the organization.
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Focus on Positive Impact: Reframe the situation as an opportunity for growth and innovation. Highlight the positive impact our department continues to have on clients despite the challenges.
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Recognition and Appreciation: Acknowledge and celebrate individual and team successes, emphasizing the value of their contributions even in challenging times.