Title: NBA restructure
Date: April 17, 2001
Disciples News Service
Christian Church (Disciples of Christ)
Contact: news@cm.disciples.org
01a-25
ST. LOUIS (DNS) -- National Benevolent Association President Cindy Dougherty has announced the completion of a restructuring plan, which includes a workforce reduction of 21 full-time employees and nine promotions at NBA central office and at seven NBA units in Florida and Indiana. The plan also consolidates business operations and development functions of NBA facilities in Indiana and business operations in Jacksonville, Fla.
The move, approved by the executive committee of the NBA board of trustees in March, is expected to save $580,000 in the current fiscal year. NBA central office savings amount to $220,000, with the balance tied to earlier restructuring moves in the field. It is projected that in the long term, NBA will save $1,230,000 annually beginning in 2002.
The consolidation of NBA unit business offices and development functions in Indiana in March resulted in the elimination of eight full-time positions and an estimated annual savings of $270,000. Consolidation of business operations in Jacksonville eliminated three full-time positions and resulted in an estimated annual savings of $90,000.
As of April, NBA had eliminated nine full-time positions in its central office in St. Louis, saving $220,000. In May, NBA will start outsourcing trust accounting for a savings of more than $100,000.
"This restructure is designed to make the NBA more fiscally responsible as we continue to move forward in a volatile market," said Dougherty. "By consolidating functions in administrative areas we're able to reduce operating costs without cutting back on the quality of care we provide at locations across the country. The people whose job descriptions have changed as a result of the restructure have assumed numerous new responsibilities. We are very appreciative of everyone's 'can do' attitude."
The workforce reduction involved staff at all levels of the organization and with varying levels of experience. Separation packages were offered on the basis of each person's history with the organization.
In February, NBA created "mentor CEO" positions, putting top NBA experts in direct supervisory contact with similar units and chief executives. "By using mentor CEOs in place of associate vice presidents, best practices are shared by like NBA units nationwide," said Dougherty. This program allowed the elimination of one associate vice president position.
Overall, the restructure reduces NBA's national administrative workforce by about 10 percent. The total savings amount to less than one percent of NBA's annual budget.
"Considering current economic conditions, it is a necessary move in the right direction," said Dougherty. "The NBA's financial position remains strong. We continue to enjoy BBB bond ratings from both Moody and Fitch. These moves are designed to keep the financial strength of the NBA intact for future generations."
The National Benevolent Association is a general unit of the Christian Church (Disciples of Christ). It serves more than 30,000 people annually through 87 facilities and programs in 22 states. Its residential and community-based programs serve older adults; children, youth and families; and differently-abled individuals. Founded in 1887, NBA ranks as the 47th largest non-profit in the United States, based on annual income. Less than one percent of the NBA's annual revenue comes from Basic Mission Finance, the shared outreach fund of the Christian Church (Disciples of Christ).
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