Page 179 - Fundamentals of Management Myths Debunked (2017)_Flat

178 Part 2 • Planning
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CAsE ApplICATIon 2

Crisis Planning at Livestrong Foundation

n 1996, Lance Armstrong, the now-disgraced pro cyclist, organization, because those challenges are significant. But in
was diagnosed with testicular cancer. Only 25 years old managing through the crisis, Ulman had to keep staff morale
Iwhen he found out he had cancer, Armstrong chose to focus up and make plans to transform and distance itself from Mr.
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on being a survivor, not a victim. During his personal battle Armstrong. One piece of advice he received from a crisis-
with cancer, he soon realized there was a critical lack of re- communications firm was to take the opportunity to get the
sources for individuals facing this disease. He decided to start foundation’s message out. Like many of the cancer sufferers
a foundation devoted to helping others manage their lives on it helps, Livestrong wanted to come out on the other side
the cancer journey. Since 1998, the Livestrong Foundation has stronger than ever. It’s not been easy. The foundation has lost
served millions of people affected by cancer. But in October some of its biggest sponsors, including Nike and RadioShack.
2012, everything turned upside down for the organization. Revenues fell in 2012 and 2013. But in addition to his “crisis
That’s when the U.S. Anti-Doping Agency released its report management” responsibilities, Ulman has been formulating
that “concluded once and for all that Lance Armstrong, the plans and strategies. He says, “It’s so ironic—we are in the
cancer charity’s founder and chairman, was guilty of doping business of survivorship, that’s what we do. Now we find our-
during his legendary cycling career.” 51 selves dealing with the same circumstances in a totally differ-
Doug Ulman, CEO and president of the Livestrong ent place.” 54
Foundation at the time, said he remembers that day clearly. In A new phase in Livestrong’s history began in early
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fact, he had anticipated for months that this day would come. 2015. The foundation’s Board of Directors announced a
As good friends, Ulman had new president and CEO,
believed Armstrong’s state- Chandini Portteus. She comes
ments of innocence over the Surviving a Crisis . . . possible to Livestrong from Susan
years. But now, “there was only with PLANNING G. Komen, the most widely-
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no more hiding.” After the known, largest, and best-
news broke, Ulman called a funded breast cancer organi-
meeting of every one of the foundation’s 100-person staff, all zation in the United States. With her extensive knowledge
squeezing into the foundation’s boardroom. There, shoulder and skills in fundraising, global programming, and advocacy,
to shoulder and crammed together, the suspicions and tingling Livestrong has an individual well-versed in the challenges of
uncertainties all of a sudden became all too real. When Ulman leading this organization into the future.
announced that the organization could no longer “defend” its
founder, it was a defining, watershed moment. Livestrong, the Discussion Questions
once highflying charity which had raised half a billion dollars 5-19 Could an organization even plan for this type of situation? If yes,
over the years, was now facing a crisis—maybe even a life-or- how? If not, why not?
death crisis—of its own. Now, Livestrong would be operating 5-20 How would goals be useful in this type of situation? What types
in “life without Lance” mode. of goals might be necessary?
Although it might be tempting to write off Livestrong 5-21 What types of plans will be useful to Livestrong? Explain why
as a hopeless case, Ulman and the rest of Livestrong’s staff you think these plans would be important.
have worked hard to keep the foundation viable and focused 5-22 What lessons about planning can managers learn from what
on its purpose. It’s not to ignore the challenges facing the Livestrong has endured?