BUSINESS PERSPECTIVES

Causal Loop Diagram (CLD) System:

Fair Housing Initiatives Program (FHIP)

Exploring the causal relationships within an the organizational work system using a non-profit FHIP program for a brief case study

Prepared by Try L. Muller 1 /20/2009

2

System Purpose

Piedmont Housing Alliance (PHA) is the area’s sole resource for fair housing. The Fair

Housing act of 1988 prohibits discrimination in the rental, sale and lending of housing

based on 8 protected classes: race, color, religion, national origin, gender, disability,

familial status and elderliness. The organizational system that regulates PHA’s Fair

Housing Program is essential to the worldwide and local efforts to end housing

discrimination. It regulates and supports the progress of PHA as a Fair Housing

Initiatives Program (FHIP). This is significant because it requires that PHA show how the

implementation of various programs has positive effects on the community. These

statistics and analysis must be put into a grant application for FHIP funding for the U.S.

Department of Housing and Urban Development (HUD). Subsequently, PHA retains its

role as a HUD funded FHIP organization. The system is fundamental to both the Fair

Housing Program and the quality of living in the surrounding community.

Causal Loop Diagram: FHIP System

Optimal

Program

Performance

FHIP

Funding

Employee

Competency

Level

B

Implementation

Efficiency

Fair Housing

Enforcement

R

O

Availability

of training

seminars

O

S

S

S

S

S

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System Components and Dynamics

The diagram depicts FHIP funding from HUD as the most pivotal factor in the

operational process. The FHIP funding assumes this role because PHA relies on this

money in order to be recognized as a Fair Housing Alliance. Without this funding from

HUD, the organization would have to submit multiple grant applications in order to

potentially receive the money they would get from a single grant.

The balancing loop

The balancing loop shows an initial reversal in the relationship between FHIP Funding to

the employee competency level. The employee competency level acts as a catalyst to the

FHIP funding as it reflects the overall efficiency of the program. The same can be said

for the time delay caused by the availability of educational seminars. If there are not

enough training opportunities, employee competency will not improve; in turn, affecting

funding. Yet, employee competency is directly related to the program’s performance.

The reinforcing Loop

The reinforcing loop is self explanatory. An increase in FHIP funding allows for quick

efficient implementation of various programs that have overhead costs. The efficient

implementation of programs in turn allows for more fair housing enforcement. The

programs set up property testing in order to catch violators of Fair Housing Law.

Effective enforcement then leads to the optimal program performance. Good program

performance incites more FHIP funding and more funding helps the organization fulfill

its role as a FHIP.