WAC REPORT:

Rocky Mountain

Neha Kandpal D026(Division D)

Contents
Letter of Transmittal
3
Executive Summary

Situation Analysis

The Problem

The Options

Criteria for Evaluation

Evaluation of Options

Action Plan

Contingency Plan

Letter of transmittal
To: Joseph Mirola, Claims Manager
From: XYZ, Administrative Assistant
Date: March 20, 2015
Subject: Case for retaining the fitness centre
I have attached a detailed report stating the reasons for keeping the fitness centre
running to convince Mr. Zachary Evans. For making my point clear, I have
analysed and included every factor that had an effect on the running of the fitness
centre. A corporate information systems department is needed, but not at the cost of
the well-being and productivity of our employees. Please consider all the options
with the rationale behind them.

Executive Summary
Zachery Evans is proposing closing Rocky Mountains Fitness Centre for cost
reduction. The Fitness Centre was set up with the view of increasing focus on
fitness and for employer branding. The report evaluates the options to persuade
Zachery Evans for continuation of this centre. The options are using logical or
emotional reasoning, or a combination of both. The evaluation criteria are:
disposition of Zachery Evans, validity/strength of the arguments and organisational
expectations from the Centre. Based on the evaluation of these criteria, a
combination of logical and emotional reasoning is recommended.

Situation Analysis
The Fitness Centre at headquarters was instituted with the intention of providing
employees the scare resource of a sports club as the organization believes in the
importance of fitness. The organization in its growth plans considers this facility to
be an important aspect of employer branding. The fitness centre was received with
enthusiasm by our employees and is usually crowded before the workday and
during lunch.
The VP of Operations, Zachary Evans is of the view that the USD 1 million Fitness
Centre and its yearly maintenance cost of USD 100,000 is unviable and
recommends closure. He proposes using the space for the Corporate Information
Systems Department. It is our endeavour to present a case for retaining the Fitness
Centre. Being a man of numbers and profits as well as a non-believer of the
importance of fitness, a cost-benefit analysis is detailed.
Documented data for employees who use the fitness centre shows that they incur
lower medical costs, and have half the absenteeism compared to those who dont.
Employees who use the centre 1to2 times a week see a 40% reduction, while
employees who use it 3 to 4 times a week see an 80% reduction in medical costs.
This clear relation between health and productivity resulted in Joseph Mirola
instituting the Wellness Program for the Claims department. Users under the
wellness program haveshown 18% increase in productivity, or additional 1.4 hours
of work in an 8-hour workday. They also exhibit a 5% decrease in sick leaves, or 6
added workdays over an 8-month period.
Although only 35% of the employees use the Centre regularly, the Centre is often
crowded during the peak hours before the workday and during lunch. The Centre
has been in existence for 3 years and apart from the Wellness Program which was
instituted due to the personal efforts of Joseph Mirola, the organization has not
taken steps to make employees aware and increase the use of the Centre. The
centre was built with long-term growth plans in mind and it would be too soon to
make a decision regarding its closure.

The Problem
What line of communication should be used to persuade Zachary Evans to retain
the Fitness Centre.

The Options
1. Logical reasoning, outlaying the cost-benefit
2. Emotional appeal, underlining employee benefit and fitness virtues
3. A weighted mix of rationale and emotional appeal

Criteria for Evaluation

1. Disposition of Zachary Evans the arguments hes inclined to buy
2. Validity/Strength of the facts/pleas of the argument
3. Organizational expectations/goals regarding the fitness centre

Evaluation of Options
1. Logical Reasoning: Zachary Evans will be receptive to an analysis
validating retaining the Centre on grounds of Financial and other business
benefits. The facts documented by Joseph Mirola are not concrete proof that
the Fitness Centre is the cause of the medical cost savings and lower
absenteeism. The organizations intention for the fitness centre was for
employer branding and providing benefit to the employees. Logical
reasoning can defend the former.
2. Emotional Appeal: Zachary Evans would not be well persuaded by this
approach as he cost oriented and doesnt believe in fitness. The pleas in an
emotional appeal would underline the employee benefit and virtues of
employee well being and Evans is known to dislike issues marginal to
making profits. The organizations intention for the fitness centre was for
employer branding and providing benefit to the employees. Emotional
appeal can defend the latter.
3. Weighted mix: This will appeal to Evans. The documented data by Mirola
along with universally known benefits of fitness and employee wellbeing
can used together to make a strong case. The organizations intention for the
fitness centre was for employer branding and providing benefit to the
employees. This option addresses both.

Action Plan
1. Collect data from within the organization such as hard statistics, employee
interviews, organizational goals while building the centre.
2. Solicit the support of senior executives at Rocky Mountain
3. Collect data from outside the organization (doctors, fitness experts) to back
the wellness-productivity internal study
4. Analyze other organizations that have similar facilities and the
benefits/reasons of having such centres
5. Draft and review the memo to persuade Evans to keep the Centre

Contingency Plan
1. Implement engagement programs to increase employee enrolments at the
Fitness Centre
2. Suggest that part of the Centre can be used for the CISD
3. Evaluate options for the centre to earn revenue (opening to external
customers etc.)