Boston Pine

MBA 622

May 1, 2016

Problem Statement:

In 2004, one of Boston’s most distinguished homeless shelters, Pine Street Inn, faced the realization that their funds were steadily decreasing for shelter services and would continue to decrease over the next few years. Lydia Downie, Pine Street’s director (protagonist) decided to conduct two studies to cut 1 million dollars of spending immediately and to rethink the shelters overall organizational strategy and reassess the Inn’s long-term plan. The lack of funding that the shelter was receiving as well as the extreme overcrowding, was an immediate red flag for Downie. Downie knew she had to take action so she made the decision to outsource the nursing clinic and the clothing operation in order to cut 1 million dollars from the shelters budget. After making these decisions, Downie must now decide what long-term strategy will work best for the Pine Street Inn.

Background:

Theoretical:

A theory from this class that could be applied to this case is the six-hat theory. Downie used the six hats method to develop an effective long term solution when faced with the issue of overcrowding at Pine Street and lack of funds. Downie used the green hat by showing creativity, the first example of this is the idea to develop permanent housing for a large majority (80%) of chronic homeless guests who stayed at Pine Street. By removing these guests from the shelter, the future costs of operating the shelter should be cut drastically. Another example of Downie using the green hat was having the nursing clinic and clothing drive outsourced. Cutting the nursing clinic from Pine Streets budget, Downie was able to keep the same level of healthcare offered before but was able to save money. Downie also developed a partnership with Goodwill to provide the homeless with clothes when they were in need. Downie was also able to lower the shelter’s population without placing a large number of homeless people back onto the streets....