Columbia University's 2014 Healthcare Management Case Competition

0.4 million0.2 million1.2 million

0

0.8 million0.6 millionRJ2Y Mailman School of Public Health Jennifer Lee, Yiwei Gu, Yubin Sohn, Jessica Ken, Zhicheng Qiu

remains effective but is no longer in the national spotlight => changing the approach, a modified model

MAJOR EVENTS

MSA funding stopped in 2009 A new generation and a changing environment is strong brand power, effectiveness proven New CEO Robin Koval

RECOMMENDATIONS

• The foundation needs to improve financial structure by seeking other sources of revenues such as grants, contributions and fundraising in order to decrease dependence on low-yield long-term investments.

• Programs should target interventions among populations with a higher smoking prevalence. The Schroeder National Institute for Tobacco Research and Policy studies should focus on their program evaluation and policy analysis in emerging issues.

• The foundation can strengthen market presence in tobacco-free task forces by building better collaborative partnerships.

Executive Summary

MISSIONBuilding a world where young people reject tobacco and anyone can quit

Legacy’s role is waning in the anti-tobacco task-force and is in need of a new model

ISSUES Lack of an organizing vision and conscious strategy of programs

Major shift in funding sources has led to an unstable funding stream

Mission & Issues

Litigation

Center for tobacco products

MSA funding stopped

Timeline

1998

1999

2000 2006 2008

2009 2012

19-21.9% 22-26.8%

Overall prevalence rate has levelled off but there is opportunity for targeted interventions

1.2 millionyouth start smoking/ year

American Indian Black White

Smoking rate

External Factor: Demographics

Opportunity for youth prevention education campaigns and Legacy’s more prominent role in the anti-tobacco task force

Adult

Youth

Cessation Advocacy Education Research Research-Prevention -Cessation

Government

External Factor: Spectrum of Task Force

Smoking costs $193 billion/y in medical costand productivity losses

Instability of economy

Family Smoking Prevention and Tobacco Control Act: Creation of the Center for Tobacco Products (FDA) to regulate sales and marketing of tobacco Shift in CDC & Office of Smoking and Health (OSH) to direct engagement in tobacco control education under Obama administration

Influence of tobacco industry on popular culture Disparities in smoking prevalence

New Tobacco Alternatives - flavored cigarettes and e-cigarettes

Rise in use of technology, internet, & social media

Opportunity to save economic cost, expand tobacco education program and research, impact social disparities and leverage technology

Political

Economic

Technology

Social

External Factor: Environment

89.9%9.6%

0.5%

Revenue SourcesFor financial year 2013

InvestmentsGrants

Other income including

fundraising 14.3%

27.9%

57.8%

Financial year 2012

Investment

Grants

Contribution

In-kind donation

1.8%

7.6%

14.2%

2.6%21.3%

49.0%

3.5% Contribution

Grants

Bequest

Program serviceOther

Other support

Financial year 2013

Opportunity for financial restructuring and creative fundraising

Overly dependent on investment activities- unstable Fundraising only take up 0.5% of the total revenue, significantly lower than other organization

Internal Factor: Finance

6politicians

3researchers

2youth representatives

1marketing

0fundraising experience

Internal Factor: Board of Directors

Design and implementation of campaigns have demonstrated effectiveness and reach

- youth prevention education- adult cessation education

Demographic Data Collection

Evidence-Based Research Advisory role to governmental agencies on tobacco counter

marketing efforts Research on the design, development and evaluation of new

technology-based tobacco cessation interventions Program evaluation

Internal Factor: Key Strengths

VISION

STRATEGIC INTENT

To streamline targeted youth prevention and adult cessation through adapted marketing and research expertise, with strengthened organizational and financial structure to promote market presence

In 5 years, American Legacy will double their success rates in youth tobacco prevention and tobacco cessation.

Vision & Strategic Intent

PROGRAM

EVALUATION

1EVIDENCE-BASED

2 3NEW

INTERVENTIONS

4HEALTH EQUITY

Citations: CDC,

Villanti et al. (2012). Analysis Of Media Campaign Promoting Smoking Cessation Suggests It Was Cost-Effective In Prompting Quit Attempts. Health Affairs, 31(12), 2708-

2716.

remains effective but is no longer in the national spotlight => changing the

approach, a modified model

Steven A. Schroeder

Budget $5 million

$6 in grants

Tobacco

industry

* Richardson AK, Green M, Xiao H, Sokol N, Vallone D. Evidence for truth®: the young adult response to a youth-focused anti-

smoking media campaign. Am J Prev Med. 2010;39(6):500-6

** Villanti, A. C., Curry, L. E., Richardson, A., Vallone, D. M., & Holtgrave, D. R. (2012). Analysis Of Media Campaign Promoting Smoking

Cessation Suggests It Was Cost-Effective In Prompting Quit Attempts. Health Affairs, 31(12), 2708-2716.

reached by

70%*

Youth

50

million

$23 million

($20.8 million in marketing)

Increased 0.2% smoker

averted

45.3

million

Adult

smokers

3.3%**reached by

$6 million

($2.4 million in marketing)

Increased 2.64% quit

attempts**

Program Evaluation

reached by 4/5

300

million

Youth &

adults

$9.9 billions in marketing

15.6% smokers



Environmental waste Poison awareness

Targeted

Effective in reach but change marketing approach

Focus on high-risk youth through partnerships with grass-root organizations

Emerging Topics

Youth Outreach Activism & Fundraising

Partnerships

Nearly 9 out of 10 smokers started smoking by age 18

Strategy: Truth Campaign


Meet youth where they are Leverage technology Increase corporate sponsorships Opportunities for fundraising

Partnerships with youth organizations

Everyone that refers 6 friends to play truthwill be entered to win $4,000!

Strategy: truth Campaign


Strategy: truth Campaign


Maintain a nationwide approach but invest in strategies to target those with low socioeconomic status

Partnership with Medicaid managed care organizations to provide incentives to members who successfully complete EX programs

Partnerships with wellness programs/committees to provide tools for their smoking cessation programs

Evidence-Based Expand Utilization & Impact

Strategy: Ex Campaign



Stay the Course

Not expanding to other areas of research Stay in the realms and build on expertise Conserve resources Keep in line with mission and vision

Increase volume of research on emerging topics Internet & mobile technologies, e-cigarettes,

environmental waste, and poison control

Highlight new areas of research at conferences and trainings Continue research on intervention evaluation & development and policy

Cutting-Edge Research

Strategy: The Schroeder Institute



Restructuring & New Expectations

Require elected board members to make personal contributions and/or increase fundraising efforts

Recruit board members with relevant expertise Business, entrepreneurship,

marketing etc.

Strategy: Board of Directors


RevenueMaintain 5% drawdowns from reserve fund & seek other sources of revenue.

Increase Fundraising Current fundraising amount $300,000 $2.5millions or more

Hire financial consultant or appoint someone who deals solely with finance Strengthened financial planning Better rate of return from investment

Require contributions from the Board of Directors Seek more grants

Current grant amount $5million CDC/FDA up to $500 million

ExpensesMaintain the level of expense conservatively.Look for opportunities to expand efficient spending when revenue arises.

Strategy: Finance


Increasevisibility

Local media Head start programs Community development Hospital smoking prevention/cessation programs

Other foundations

Bloomberg Philanthropies Robert Wood Johnson Foundation

Programdevelopment

Environmental organizations

Health insurance companies Local departments of health Poison Control Center

Cigarette butt littering Green house gas emission

Strategy: Potential Partners


Leader in the Tobacco Free Market Force

Legacy Foundation’s ‘truth’ Campaign

Reaches 95% of Teens

Leveraging CEO’s Marketing Expertise


Leader in the Tobacco-free Task-force

Strategy: Promote Industry Presence

Leverage CEO’s marketing expertise Increase partnerships with local organizations Emphasize relevance of campaigns in 21st century Highlight research on emerging issues Recruit high profile figure as a board member


Immediate ActionCommunicate the new vision throughout organization Address expectations to board of directorsHire financial consultant focused on investment portfolio Recruit savvy fundraising staff

Summary of recommendations

Short-term Plan

Within 2 to 3 yearsIncrease revenue via contributions, fundraising and grantsLeverage CEO marketing experience to develop cost-effective marketing strategies to

• Impact highest risk populations in campaigns• Adapt to new trends in youth culture• Promote corporate presence

Capitalize on opportunities for youth smoke-free education under Obama administration Expand involvement with grassroots organizations and seek new partnerships Develop emerging research initiatives

• Health insurance and Ex program• Environmental impact• Poison awareness

2014

remains effective but is no longer in the national spotlight => changing the approach,

a modified model

1. Financial structure solidification • Increased revenue from fundraising, contribution, and investment

• Expand budget for program development and research

2. Targeted intervention• Successfully expanded truth campaign to targeted population

• Continue efforts in program evaluations to promote effectiveness

3. Promotion of market presence• Be a pioneer in research

Marketing effectiveness, health economics and outcomes research,

program development, and policy analysis

• Play a more influential advisory role in local, state and federal

government agencies

Long-term Plan

Summary of Recommendations