Case Study: Goodwill Industries Inc.
Goodwill Industries Inc.,
Racine, Wisconsin
Situation:
While working for Emerson Electric Co.’s In-Sink-Erator Division, I was a member of the Racine Wisconsin Goodwill Industries’ Board of Directors. This was a volunteer position for this $2 million in sales, non-profit organization which provides rehabilitation services to developmentally disabled clients. $1 million of the $2 million came from Federal and State government grants. Goodwill served Southeastern Wisconsin with two manufacturing plants and three retail stores.
I was elected Chairman in 1982. In 1983, budget cuts reduced government revenue to almost zero. Goodwill was faced with closing down its operations.
Actions and Results Achieved:
The alternative was to merge this Goodwill operation with the larger Goodwill Milwaukee. The key issue was to convince local Racine politicians and other interests that the decision was correct. Some were hostile to the merger because they wanted to maintain local control. We conducted a public hearing and presented the alternatives Racine’s Goodwill faced. The merger was unanimously approved.
One year after completing the merger, the number of disabled clients served in Racine, Wisconsin had increased from 40 to 110.
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