Reference no: EM132694890

(Crisis Planning at Livestrong Foundation)

In 1996, Lance Armstrong, the now-disgraced pro cyclist, was diagnosed with testicular cancer. Only 25 years old when he found out he had cancer, Armstrong chose to focus on being a survivor, not a victim. During his personal battle with cancer, he soon realized there was a critical lack of resources for individuals facing this disease. He decided to start a foundation devoted to helping others manage their lives on the cancer journey. Since 1998, the Livestrong Foundation has served millions of people affected by cancer. But in October 2012, everything turned upside down for the organization. Thats when the U.S. Anti-Doping Agency released its report that concluded once and for all that Lance Armstrong, the cancer charitys founder and chairman, was guilty of doping during his legendary cycling career.

Doug Ulman, CEO and president of the Livestrong Foundation at the time, said he remembers that day clearly. In fact, he had anticipated for months that this day would come. As good friends, Ulman had believed Armstrongs statements of innocence over the years. But now, there was no more hiding. After the news broke, Ulman called a meeting of every one of the foundations 100-person staff, all squeezing into the foundations boardroom. There, shoulder to shoulder and crammed together, the suspicions and tingling uncertainties all of a sudden became all too real. When Ulman announced that the organization could no longer defend its founder, it was a defining, watershed moment. Livestrong, the once highflying charity which had raised half a billion dollars over the years, was now facing a crisismaybe even a life-or death crisis of its own. Now, Livestrong would be operating in life without Lance mode.

Although it might be tempting to write off Livestrong as a hopeless case, Ulman and the rest of Livestrongs staff have worked hard to keep the foundation viable and focused on its purpose. Its not to ignore the challenges facing the Crisis Planning at Livestrong Foundation organization, because those challenges are significant. But in managing through the crisis, Ulman had to keep staff morale up and make plans to transform and distance itself from Mr. Armstrong. One piece of advice he received from a crisis communications firm was to take the opportunity to get the foundations message out. Like many of the cancer sufferers it helps, Livestrong wanted to come out on the other side stronger than ever. Its not been easy. The foundation has lost some of its biggest sponsors, including Nike and RadioShack. Revenues fell in 2012 and 2013. But in addition to his crisis management responsibilities, Ulman has been formulating plans and strategies. He says, Its so ironicwe are in the business of survivorship, thats what we do. Now we find ourselves dealing with the same circumstances in a totally different place.

A new phase in Livestrongs history began in early 2015. The foundations Board of Directors announced a new president and CEO, Chandini Portteus. She comes to Livestrong from Susan G. Komen, the most widely known, largest, and best funded breast cancer organization in the United States. With her extensive knowledge and skills in fundraising, global programming, and advocacy, Livestrong has an individual well-versed in the challenges of leading this organization into the future.

Discussion Questions

1. Could an organization even plan for this type of situation? If yes, how? If not, why not?

2. How would goals be useful in this type of situation? What types of goals might be necessary?

3. What types of plans will be useful to Livestrong? Explain why you think these plans would be important.

4. What lessons about planning can managers learn from what Livestrong has endured?