Ashford University Online Sailing the Scholars Case Discussion

  

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Seacoast Science Center:
Sailing the Shoals1
Margaret J. Naumes, University of New Hampshire
Wendy W. Lull, Seacoast Science Center
endy Lull, president of the Seacoast Science Center (SSC), faced her longtime friend and former board member, Rose Wood, across her office desk.
Since Rose had moved to South Carolina, she had become an infrequent visitor to the center, but had come on this frosty February morning in 2008 to see the new
Learning Studio and other recent changes. Wendy was happy to show off the SSC and
talk about what had happened since it became independent in 2001. However, she
noted, some things had not changed.
Rose asked, “Have you solved the ‘$50,000 problem’ yet? Have you found a way for
your income to cover all your expenses?”
Wendy sighed: “Depending on how you look at where we are right now, it’s not clear
that we’ve solved the ‘$50,000 problem.’ We used to think that revenue from programs
covered 80 percent of our costs. I think that was a myth. I don’t think we ever really did
it. What worries me is that we’re depending on the unpredictable, grants and bequests,
to balance the budget.” She felt it would be more fiscally sound, and more comfortable
for her as president, if the SSC could find a way to cover expenses out of operating
income, rather than running operating deficits which were seldom less than $50,000.
Rose asked, “Have you thought about raising the admissions fee? It’s only $3.”
Wendy looked challengingly at her visitor. “I’d like to see it go to $5, or even $7,”
she said. “Would that impact the number of visitors? Maybe, but that’s not necessarily
a bad thing. And what else have we got?”
W
THE SEACOAST SCIENCE CENTER’S EARLY YEARS
Located in Odiorne Point State Park in Rye, New Hampshire, the Seacoast Science
Center served both as the visitor’s center for the park and as an educational center for
the local environment. Odiorne Point was the site of New Hampshire’s first permanent
European settlement in 1623. Fishermen set out from its shores to fish the Gulf of
Maine and the Atlantic Ocean, primarily for cod, while farmers took advantage of the
fields, marshes, and inland fresh water. The nearby rivers effectively served as roads to
connect residents of the point with the nearby towns of Strawbery Banke (later
Portsmouth) and Dover, New Hampshire.
Copyright © 2012 by the Case Research Journal and by Margaret J. Naumes and Wendy W. Lull. This
case study was prepared as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. An earlier version of the case was presented at the 2008
Annual Meeting of the North American Case Research Association in Durham, New Hampshire.
Seacoast Science Center: Sailing the Shoals
1
Exhibit 1
Odiorne Point State Park Trail and Habitat Map
Source: Seacoast Science Center.
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Case Research Journal • Volume 32 • Issue 1 • Winter 2012
By the late 1800s, Odiorne Point’s scenic location on the edge of the ocean led to
the building of luxurious summer homes. During World War II, the U.S. Government
acquired most of the Point, building Fort Dearborn for coastal defense. The land was
turned over to the State of New Hampshire in 1963 to serve as a state park (see Exhibit
1 for a map of Odiorne Point State Park). Recognizing the unique nature of the site,
with seven distinct natural habitats, the Audubon Society of New Hampshire (ASNH)
had begun offering nature programs in 1973 in cooperation with the New Hampshire
Division of Parks and Recreation (Parks). In 1977, the ASNH programs moved to
Sugden house, an old stone summer home located by the shore. The University of New
Hampshire (UNH) provided a full time director for the visitor’s center, overseeing a rapidly increasing number of visitors and school groups.
In 1987, UNH received the first formal contract from Parks to manage the seasonal
visitor’s center. ASNH and the volunteer community group, The Friends of Odiorne
Point, joined Parks and UNH as part of a Leadership Committee. The committee had
no formal standing or authority, but the four sponsoring organizations agreed to follow
its recommendations. In response to the growing number of visitors, the New
Hampshire State Legislature created a $400,000 matching challenge grant for a yearround visitor’s center; the Leadership Committee raised an additional $1.2 million for
the new construction. The original Sugden House formed the core of the building; the
former porches facing the ocean and on the sides were permanently enclosed. A new
open room behind the house held exhibits of the different park habitats, including a tide
pool touch tank, a 1,000 gallon Gulf of Maine tank with oceanic fish, and tanks with
creatures from the ponds and meadows. The room also held a nature store and served
as the center’s entryway. At the rear were offices (see Exhibit 2). The facility, subsequently named the Seacoast Science Center, opened in January 1992 with ASNH as the
managing sponsor, Parks as the facility’s owner, and the Leadership Committee, now
renamed the Advisory Committee, as the governing body. Wendy Lull, director of the
visitor’s center, was its first employee. Sixty-five thousand people visited the new center
in its first year.
By 1999, the number of visitors had grown to 100,000, and the facility was running
out of space. The National Oceanographic and Atmospheric Administration (NOAA)
had provided a grant of $450,000 to develop a new exhibit on aquaculture as well as the
educational curriculum to accompany it. Office space expanded into a trailer in the rear
parking lot. The Department of Parks and Recreation had commissioned a master plan
that would include not only the science center but also the recreational, environmental,
and historic aspects of the park, under a unified management contract. The ensuing discussions among the Advisory Committee members and within both the SSC and
ASNH led to the establishment of Seacoast Science Center, Inc., an independent 501c3
nonprofit organization, which took over the management contract for the visitor’s center in November 2001. In 2001, a NOAA grant provided $1 million to renovate and
expand the facility, with an additional $300,000 to develop additional exhibits. In
2002, the Friends of Odiorne Point State Park, Inc., was merged into SSC.
The most recent expansion—a state of the art multimedia learning center complete
with its own broadcast studio—had been launched in 2005 with a $1 million grant
from NOAA and grants from the Little Harbor Charitable Foundation and IBM
Corporation. The Gregg Interactive Learning Studio, named for Judd Gregg, former
Governor and Senior Senator from New Hampshire, opened in June 2007, with a live
virtual tour of the Mt. Washington (NH) observatory and Aquarius, an underwater laboratory in the Florida Keys National Marine Sanctuary. The Senator said, “This is an
Seacoast Science Center: Sailing the Shoals
3
Exhibit 2
SSC from the water. Sugden House is visible on the left side of the building. This photo was taken before the
addition of the Learning Studio.
The touch tank.
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Case Research Journal • Volume 32 • Issue 1 • Winter 2012
example of taxpayers’ money being put to good use. The legacy of every dollar is that
future generations are going to learn about our environment.”2 SSC president Wendy
Lull echoed this sentiment in her remarks: “Our innovative educational programs will
engage our imaginations to excite us about nature, to touch our inner spirits and in so
doing inspire a true spirit of environmental stewardship”3 (see Exhibit 3 for pictures of
the Learning Studio).
EXHIBITS AND PROGRAMS
To create connections to nature through personal experience.
SSC Mission
From its initial focus on interpreting the local seacoast environment, the SSC’s programming had expanded to include regional and global issues relating to the sea: “The
Center’s exhibitions interpret four themes: the Gulf of Maine, New Hampshire’s
Coastal Connection, Changes to the Sea and Sky, and working Under the Sea.”4
Underlying all four was the goal of helping visitors to “attain a sense of the natural history of the park’s seven habitats and how people have interacted with them.”5 Exhibits
and programs related to all seven of the habitats: Gulf of Maine, rocky shore, woodlands, salt pond, freshwater pond, sandy beach, and salt marsh. As staff aquarist Steve
Engstrom pointed out, this emphasis was important: “For the most part, we keep and
show local species as teaching tools. . . . That’s what separates us from large aquariums
that deal with tropical environments and animals from all over. We showcase what’s
right here in our backyard.”6
Exhibits
The central gallery stretched from the entrance to huge windows with a view of the
rocky shore, the Gulf of Maine, three lighthouses, and the Isles of Shoals, which were
seven miles offshore, but on a clear day appeared close enough to swim to. A display in
the gallery held a relief map of the Gulf and its currents. At the other end of the gallery,
near the windows, was the Tidepool Touch Tank, with starfish, hermit crabs, mussels,
and other examples of creatures that could be found in the rocky pools just outside. In
the exhibit hall to the left of the gallery were tanks representing various water habitats.
A new large Off Shore tank held a naturally blue lobster and awaited other deep water
denizens. The Sub Tidal Tank held several species of fish as well as anemones, urchins,
and starfish. Other tanks displayed marsh and fresh pond creatures. One featured a bright
orange sea raven, an exotic fish from a warmer climate that had ridden the ocean currents
to the Gulf of Maine. Another showed tiny flounders in a tank whose floor was covered
with light and dark sand; as the fish moved from one part of the tank to another, fascinated visitors could watch them turn lighter or darker in camouflage.
In the galleries enclosing Sugden House were a series of additional exhibits.
Visitors could check temperature and other data from off-shore buoys as part of the
Seasons of the Sea exhibit. In the north gallery, overlooking the water where the
Piscataqua River entered the Gulf of Maine, was The Great Bay to the Sea, an interactive exhibit where, “using state-of-the-art mathematical models and computer animation you can watch your water droplet move through the estuary and river.”7 Todd
Kent, director of special projects, explained: “The exhibit is a new application for
both the water flow research and computer model. The data is of scientific interest,
Seacoast Science Center: Sailing the Shoals
5
Exhibit 3
SSC front entrance, from the parking lot. The left side of the building is the Learning Studio.
The Learning Studio. The left screen is showing a video; the middle screen is showing a PowerPoint presentation. Below the center screen is a lab table with built-in cameras.
6
Case Research Journal • Volume 32 • Issue 1 • Winter 2012
of course, but also has many applications for municipalities that are trying to manage
discharges and water quality. This exhibit is the first time the science and modeling
have been combined for public education and fun!”8
In the gallery closest to the water was an exhibit on Working Under the Sea. Its most
visually arresting feature was a leaded-boot dive suit, weighing nearly 200 lbs., that was
the state of the art for diving equipment during WWII. Here one could also learn about
the first underwater human habitat and the sinking of the submarine “Squalus.” Nearby,
visitors could take a virtual trip underwater up the Piscataqua River or out into the ocean.
Interactions between humans and the environment were also on display in an exhibit
about Sugden House and the changing landscape of Odiorne Point, and another showing the wreck and gradual recent revealing of an 1890s shipwreck on a nearby beach.
Programs
SSC programs were designed to allow visitors to interact with nature and the local habitats. Visitors came from a variety of sources. Some were SSC members, returning repeatedly for new programs or simply to visit the various sea creatures. Others were visitors
to the state park who were curious about this interpretive facility. During the week,
many young people came with school groups, or attended summer camps and school
vacation programs. During the summer, there were daily programs for the public in
addition to the camps. During the winter, the facility was only open to the public on
weekends with a few weekday programs by reservation, although SSC members could
call ahead to visit any time. See Exhibit 4 for the calendar of events for January 2008.
Programs were led by a mix of staff and trained volunteers. See Exhibit 5 for SSC’s
organization chart.
Educational programs were available for all ages from kindergarten through high
school. SSC staff designed the programs to be consistent with state and national curriculum standards. Many of the programs also had as a goal increasing ocean literacy, “which
is defined as understanding the influence oceans have on people, and the influence people have on oceans.”9 Field programs about the rocky shore, salt marsh ecology, and geology took students outside using the grounds of the Science Center and the park. Other
programs, from “A Whale’s Tale” and “Adaptations and Classification” through “Love
and Life Cycles,” involved hands-on learning, adapted to the students’ level. The one
hour programs were available for classes of up to twenty-five students. They cost
$130/hour, slightly more for the field programs. In the spring and fall, the SSC offered
six-week preschool programs “for a child and their favorite adult to explore nature
together.” Monthly programs for home schoolers were also available, and it was possible to schedule children’s birthday parties.
The newest on-site program was “GeoAdventures, Assignment: Gulf of Maine.” It
had been designed for the new Gregg Learning Studio, and made use of the studio’s
high-definition projectors with ten-foot screens and Dolby surround sound. According
to the program’s description, “During this multi-media, interactive experience students
will ‘join’ teens on a quest to find hidden geocaches. Students are prompted to engage
at activities at touch-screen computer stations. Through this experience, students learn
that everything in the environment is interconnected; that our lives influence the oceans
and the oceans influence our lives.”10 Teachers received supplemental materials to build
on the experience in different areas including watersheds, lobstering, and global positioning. The hour-long GeoAdventures program cost $200 per group.
Seacoast Science Center: Sailing the Shoals
7
Exhibit 4
January 2008
Sunday
Monday
Tuesday
1
Wednesday
2
Thursday
3
Friday
4
Saturday
5
10:00 am:
Visitor Programs:
Underwater Exploration
2:00 pm:
GeoAdventures,
Assignment: Gulf of
Maine
6
7
8
10:00 am:
10:00 am:
Visitor Programs:
Snug as a Bug!
Underwater Exploration 2:00 pm:
2:00 pm:
GeoAdventures,
GeoAdventures,
Assignment: Gulf
Assignment: Gulf of
of Maine
Maine
13
14
9
10
11
10:30 am:
Global Warming
Discussion Course
12
10:00 am:
Visitor Programs:
Underwater Exploration
2:00 pm:
GeoAdventures,
Assignment: Gulf of
Maine
15
10:00 am:
10:00 am:
VIsitor Programs:
Snug as a Bug!
Underwater Exploration 2:00 pm:
2:00 pm:
GeoAdventures,
GeoAdventures,
Assignment: Gulf
Assignment: Gulf of
of Maine
Maine
16
17
18
19
10:30 am:
10:00 am:
Global Warming
CANCELLED
Discussion Course Nature’s Cures
10:00 am:
Visitor Programs:
Underwater Exploration
9:00 am:
Book and
Breakfast:
Entanglements . . .
2:00 pm:
GeoAdventures,
Assignment: Gulf of
Maine
9:30 am:
CANCELLED
Nature Sketching
Workshop
20
21
22
10:00 am:
10:00 am:
VIsitor Programs:
Snug as a Bug!
Underwater Exploration 2:00 pm:
2:00 pm:
GeoAdventures,
GeoAdventures,
Assignment: Gulf
Assignment: Gulf of
of Maine
Maine
23
24
10:30 am:
Heritage Dinner:
Global Warming
ClimateChange:
Discussion Course Cities and Towns
Leading the Way
2:30 pm:
Odiorne Point: TwiceSeen Photo Exhibit
Opening
27
26
10:00 am:
Visitor Programs:
Underwater Exploration
2:00 pm:
GeoAdventures,
Assignment: Gulf of
Maine
6:00 pm:
Marine Teen Game-ORama
28
10:00 am:
10:00 am:
Visitor Programs:
Snug as a Bug!
Underwater Exploration 2:00 pm:
2:00 pm:
GeoAdventures,
GeoAdventures,
Assignment: Gulf
Assignment: Gulf of
of Maine
Maine
29
30
31
23
10:30 am:
Global Warming
Discussion Course
Source: Seacoast Science Center website.
8
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Case Research Journal • Volume 32 • Issue 1 • Winter 2012
Seacoast Science Center: Sailing the Shoals
9
Seacoast Science Center Organizational Chart
Source: Seacoast Science Center documents.
Note: Nicole Rutherford was hired as development director shortly after this chart was drawn.
Exhibit 5
The SSC also provided distance learning programs. Three hour-long programs were
offered at $150 per broadcast: The American Lobster, Horseshoe Crab Program, and
Coastal Creature Adaptations. These programs were broadcast live from the Learning
Studio to the participating schools. The video conferencing capability also enabled
teachers to offer pre- or post-visit activities. It was possible to customize any program at
an additional cost.11
During the summer and school vacations, including between Christmas and New
Year’s Day, there were a variety of camp programs. Summer programs were week-long
and were led by seasonal camp staff. The vacation camps in December, February,
March, and April offered individual daily programs, although many children came for
the entire week. Week-long camps were $200/week, with a $25 discount for SSC members; a single day at vacation camp was $40, with a $5 discount for members.
Wendy smiled as she talked to Rose about the role of SSC’s personnel:
People always comment about how engaged our staff is, how wonderful they are. Each
one of them takes what we call “donut duty”—we all do visitor programs, we’re out there,
you’re teaching people, you’re interacting with them. No one comes to this building who
is not talked to two or three times and not just to say “Look over there.” [Rather] “Do you
want me to talk to you more about the animals?” I spent an hour talking to a family of
four about plate tectonics. . . . Where else do you go where you can have that much time
with a naturalist, that intense personal experience? . . . We always try to make personal
connections.
Staff and volunteer naturalists led a variety of free programs for visitors. During the
winter, these programs were on weekends only, while during the summer, the offerings
were at least daily. “Tidepool Treasures” was the most popular of all programs, taking
people outside for a first-hand experience. Exhibit interpreters offered other programs
such as “Working On and Under the Sea” and “Coastal Connections.” GeoAdventures
introduced the Learning Studio to the public. A live broadcast from Monterey Bay,
California, was also scheduled for the studio.
On occasion, the SSC took its programs to the general public. In August 2007, Fox
Run Mall, the largest local shopping area, sponsored a day of lobster and rocky shore
programs. Rose had not heard about this event, and Wendy pointed out its advantages:
Having informal science activities during the back-to-school shopping season helps them
add an educational (but fun) component to their promotion. It helps us reach people
who are not predisposed towards learning about nature. National Science Foundation
studies indicate that people are more open to science in informal settings such as museums and libraries than in schools. Now we can add a shopping mall to that list.
Special Events
Seacoast Science Center programs were not just for children. The Heritage Dinner series
hosted speakers from a variety of disciplines in an after-hours setting. Topics for
2007–2008 included natural history (life on an undersea volcano), adventure (the search
for a lost airplane in an Alaskan lake), the environment (cities’ and towns’ efforts to
reduce global warming), and the arts (the story behind filming a television documentary
on the nearby Isles of Shoals). Individuals, families, and groups took part in BioBlitz!, a
one-day survey of the flora and fauna of Odiorne Point State Park, in September; not
only were they gathering scientific data on the park’s habitats but they were also able to
interact with scientists classifying their findings in the Gregg Interactive Learning Studio.
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Case Research Journal • Volume 32 • Issue 1 • Winter 2012
A week-long program of Art in Nature was being developed for July 2008, involving
artists, campers, members and visitors. On Thursday evenings during the summer, the
SSC hosted “Music-by-the-Sea,” a family concert series held outdoors (under a big tent
in bad weather).
Travel was also part of the SSC’s programming. For several years, Wendy had gone
with groups of members on naturalist-led trips with a nature/marine theme: to the
Galapagos Islands, the South Seas, and Central America. As she pointed out,
“Remember, by traveling with the Center, you support our mission twice: by living it,
and because a portion of your trip costs is a tax deductible contribution.” Closer to
home were yearly “Get Away Weekends.” In 2007, there was a trip to Eastern Egg Rock
Island in Maine to see puffins, and planned for June 2008 was a trip to Hog Island in
Damariscotta, Maine, for birding, botany, and tidepool exploration.
VISITATION
The number of visitors coming to the SSC was distinctly seasonal (see Exhibit 6), with
the greatest number coming during the summer months. Recently, visitation had
peaked at more than 61,000 people in Fiscal Year 2006 (July 2005–June 2006). FY
2008 so far showed improvement compared with FY 2007, but was still below the FY
2006 numbers. School programs accounted for 13,000 visits, down from a high of
about 16,000. The summer and vacation camps were also down.
Rose asked Wendy: “Are bodies coming in the door the right metric?”
Wendy replied: “Maybe not. Viewers of distance learning programs are not being
included in visitation counts, only people who come physically to the site.”
Rose responded: “But that means you could count people who come to weddings
or corporate parties, people who are wandering around but not necessarily learning
anything.”
Wendy replied: “That’s true, but if they wander around and are intrigued, they may
come back with their kids.”
Rose asked about the number of visitors, which had been growing rapidly every year
when she was on the board. Wendy replied that visitation was increasing, but only
slightly. One problem, she said, was caused by pressure on school budgets: “Nobody has
money for field trips anymore.”
Rose commented: “In the early years we pretty much relied on direct mail to schools
and press releases. What are you doing now to get people to come to the SSC?”
Wendy replied that the SSC did have a website as well as the direct mail and press
releases, and that she tried to visit local radio talk shows regularly, but SSC still had no
brochures in the state’s visitor’s centers, and still used no paid advertising: “If you’re
doing nothing differently and nothing changes, why are you surprised? And why don’t
we do any advertising? Because we don’t have any money. And why not? Because we
don’t have enough people coming to support us, and at $3 a head, ha!”
COMPETITION
Although no other organization in the seacoast area offered exhibits or programs similar to the SSC, Wendy had no trouble coming up with a list of potential competitors
looking for visitors. Strawbery Banke, a historic village with homes from all eras of local
history, and the Children’s Museum were located in neighboring Portsmouth. The
Seacoast Science Center: Sailing the Shoals
11
Exhibit 6
Seacoast Science Center Visitation
(Fiscal year: July 1–June 30)
Number of Visitors
Month
July
August
September
October
November
December
January
February
March
April
May
June
Total
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
6,492
6,852
2,827
4,631
26
502
58
130
60
3,874
4,328
16,933
46,713
12,047
10,173
3,964
2,258
1,639
918
954
1,749
1,404
4,702
6,337
10,248
56,393
11,548
8,319
2,542
4,832
1,735
1,056
1,025
1,962
2,277
9,752
7,529
9,170
61,748
11,749
5,373
2,932
3,793
1,702
1,187
1,725
1,846
1,822
8,307
6,310
7,897
54,643
10,537
10,604
3,810
4,015
1,982
752
1,057
Visitor Revenues ($)
Month
July
August
September
October
November
December
January
February
March
April
May
June
Total
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
9,713
10,547
3,763
3,121
1,735
1,056
14,620
9,839
5,134
3,829
2,411
1,365
1,431
2,554
2,226
6,637
4,717
6,385
$61,148
11,935
12,454
4,070
3,103
1,986
1,056
1,025
2,614
2,605
7,554
3,671
6,058
$58,131
6,116
9,519
4,608
3,514
2,228
1,558
1,626
2,607
2,523
6,450
4,149
6,846
$51,744
11,951
12,229
3,226
3,981
1,947
922
1,449
8,763
7,266
12,948
$58,912
Note: The Seacoast Science Center was closed to visitors for several months in FY 2004.
Between January and March, there were “very small visitor numbers, probably from other
activities for which we [the SSC] didn’t charge admission” (W. Lull, personal correspondence).
Note: Revenues are less than the number of visitors for some months because of sharing
group fees with Parks as payment for groups’ admission.
Source: Seacoast Science Center records.
Gundalow Company brought its reconstructed sailing vessel to many sites and activities
in the local area. There were National Estuaries—marine habitats with interpretive centers in Stratham, New Hampshire, and Wells, Maine—as well as the Science and Nature
Center located at the Seabrook Nuclear Power Plant, only fifteen miles down the New
Hampshire coast. The New England Aquarium in Boston was only sixty miles away,
offering extensive exhibits of marine wildlife.
Other nearby attractions competing for visitors’ attention and dollars included a
large water park; beaches and parks along the New Hampshire coast, including Wallis
Sands, Long Sands, and Hampton Beaches; and an expanse of outlet malls in nearby
Kittery, Maine.
Rose asked: “Who are you competing with for donors?”
Wendy replied: “Our biggest competitor is Cross Roads House,” a homeless shelter
and residence that also provided services to help its residents become independent. She
pointed out that the Portsmouth Music Hall, a historic performing arts center, was in
the midst of a major renovation and fundraising campaign. Strawbery Banke was
another competitor for funds. Wendy said: “It’s been around since the 1960s and is
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Case Research Journal • Volume 32 • Issue 1 • Winter 2012
more valued by long term local donors. We share a lot of donors, but those individuals
are more likely to support Strawbery Banke’s annual fund.” The University of New
Hampshire (UNH) and the New Hampshire Charitable Foundation (NHCF) also
engaged in large scale local fundraising. Wendy noted that UNH and NHCF were well
organized “for recruiting and maintaining donors who would want to support similar
mission areas. NHCF also gives us money, so that’s a bit different . . . but when it comes
to competing for an individual’s dollars, they’d be on the list.”
FINANCES
Fund Raising and Development
Although the Science Center had been in existence for a decade, the change in management to SSC Inc. in 2001 allowed Wendy and the staff to concentrate on the SSC’s mission, rather than on trying to balance SSC activities with ASNH’s philosophy and mission, which had a stronger focus on habitat preservation. Additionally, it freed SSC from
the need to contribute to ASNH’s overhead in addition to covering its own costs, and
allowed the organization to have its own members and donors. Financial issues for the
whole ASNH organization during the final years of its management contract had led to
retrenchment, including at the SSC. Consequently, the Seacoast Science Center had
started its new life “lean and mean.” The initial board of trustees was primarily concerned with operations and growth; its members were businesspeople with little experience with nonprofits or fundraising. It was not until 2005 that a new board voted to
make fundraising a priority. According to Wendy, the new chair, Pam Hall, “has a huge
amount of experience.” As an indication of its increased priority, the chair established a
development committee on the board, rather than the previous development task force.
Because of this new priority, a donor came forward who, in addition to an outright
gift of $50,000, pledged to match $20,000 a year for three years to cover the salary of a
development director. In Wendy’s words, the donor “realized that you can’t support an
organization like this without some kind of infrastructure for fundraising.” The SSC also
secured a grant of $25,000 for fundraising software from Fidelity Investments. Wendy
estimated that fundraising had increased from $50,000–60,000 to $150,000 and then to
$235,000. She expected the FY 2008 number to be closer to $170,000, however. She
noted that not everyone approved of the increased emphasis on fundraising:
People are saying either “that’s bad because you’re going to be too dependent on fundraising, because it’s going to go to 30 percent instead of 20 percent, so that’s bad,” or “you’re
not doing your job raising enough money to cover operational expense.”
The first development director left after less than a year. As a result, as Wendy said,
“as of November, we had to start the fundraising all over again.” The new development
director, Nicole Rutherford, came on board in early October 2007.
Even with a development director, fundraising would still be a challenge, Wendy
told Rose. She was very willing to talk to potential donors, but:
The only way we can generate enough money to make it run, with part of me, a full
time development person, and twelve hour a week data entry person is if the board participates in fundraising. I don’t know who to ask. They’ve got to bring the names to me.
They’ve got to do the people. They’re very good, they’ve made the jump, they write the
checks, that’s huge and great and wonderful. [Fundraising] is only peer to peer, it doesn’t work any other way.
Seacoast Science Center: Sailing the Shoals
13
She felt that the SSC had already missed several key opportunities, including one
offered by the new Learning Studio:
[An advisor] had said to me a long time ago, “a smart nonprofit when it’s doing a capital campaign builds endowment at the same time because people will give to bricks and
mortar, they don’t give to water.” This is the second time that we have been given a million dollars—a million dollars!
The Seacoast Science Center had a small endowment generating approximately
$15,000 per year. Wendy stressed the importance of fundraising and development:
Why do people give to nonprofits? And part of it is, in our case, because people won’t pay
what it costs. You can’t charge enough to come into this building, because people don’t
value it enough. You’re not going to pay what it really costs to go to the opera or the ballet or an art museum. So you get other people who value it who subsidize it. The donors
are our investors. And the return on investment isn’t money. It’s the mission. And people
still don’t get it; they say you should charge more. . . . But at some point, it’s not really
worth it, people won’t pay. . . . We’re in a state park, we’re not an elitist organization.
Revenue
Aside from development, the major revenue sources for the SSC were its seasonal camps
and other programs, collectively providing 28.4 percent of income in FY 2007.
Admissions, set at $3 for adults and $1 for children aged 3 to 12, provided only 7.2 percent (see Exhibit 7). The SSC also rented its facilities and grounds for weddings and
other private and corporate events. New Hampshire Department of Parks provided program and custodial support since the SSC served as the visitor’s center for Odiorne
Point State Park. Parks, required by the State of New Hampshire to be self-funding,
charged $4 per person for admission to the park and $2 for children aged 6 to 11—fees
that did not include admission to the Seacoast Science Center and were not typically
collected during the winter months. Members of the SSC were admitted to the park
without a fee. The SSC also gave Parks a portion of the fee paid by school groups to
cover their admission.
The SSC offered individual ($40) and family ($65) memberships, which included
free admission to both the center and the park, members-only winter hours, the
Seacoast Sun newsletter, and discounts for the nature store and concerts. Members
donating at higher levels received additional benefits including the president’s quarterly
letter, guest passes, and/or free school programs. As of 2008, the SSC had over 1,300
member households, as well as fifty-eight corporate sponsors. Corporate sponsors
ranged from IBM and Bank of America to Public Service of New Hampshire (PSNH)
and Piscataqua Savings Bank and to local businesses, such as a catering company. Many
sponsored a specific event or program; for example, PSNH was a sponsor of the
Heritage Dinner Series and the Seacoast Sun, while Sprague Energy sponsored the
Seaside Safari Holiday Camp and “The View from Here” exhibit. The annual fund
campaign, held in November and December, also offered the option to donate for a specific purpose, including funds set up to provide financial assistance for school programs,
camps and tots, a fund to support maintenance of the exhibits and care for the animals,
and a professional development fund for staff training.
Grants, while an important source of revenue, were not included as part of operating
income. Most grants received by SSC were for a specific, short-term purpose such as
developing software and programming for the Learning Studio. Large one-time gifts and
14
Case Research Journal • Volume 32 • Issue 1 • Winter 2012
Exhibit 7
Seacoast Science Center—Financial Statement
FY09
Budget
FY08
Forecast
FY07
FY06
FY05
85,666
170,430
600
107,850
295,974
0
79,100
126,936
129,345
75,657
140,901
5,028
99,892
265,118
1,123
73,228
120,775
130,383
64,729
129,714
380
82,449
232,265
0
77,725
125,406
119,479
64,575
132,918
1,807
71,491
240,332
2,862
75,678
135,645
129,733
76,826
133,611
2,989
47,990
193,137
3,644
77,509
139,418
127,025
50,000
15,000
50,000
15,000
50,000
15,000
50,000
15,000
50,000
15,000
4,500
8,400
1,073,801
4,719
2,550
984,374
897,147
920,039
867,149
21,098
2,635
312
16,300
9,463
20,059
4,804
2,350
271
55,848
7,295
1,057
50
1,898
0
52,977
1,998
16,639
17,213
5,212
68,196
14,451
0
19,228
579,196
0
12,226
15,271
841
19,905
9,763
350
6,244
3,196
1,415
15,632
5,950
6,909
966,442
14,271
970
2,350
110
59,314
6,615
1,291
306
935
780
61,998
–2,852
16,414
11,822
3,537
76,086
8,271
50
12,797
554,371
600
11,768
16,118
2,364
6,721
15,412
330
7,117
3,454
900
15,087
5,473
15,619
930,398
–63,249
Ordinary Income/Expenses
Income
Admissions
Camps
Exhibits (grants)
Facility Rentals
Fundraising and Development
G&A
Membership
Nature Store
Group Programs
Parks Contract
Program Support
Custodial Support
Learning Studio
Programs
Rental
Total Revenue
Expense
Contributions to Others
Advertising/Media
Bad Debt Expense
Bank Service Charges
Benefits
Credit Card Processing
Design
Dues and Subscriptions
Hosting Expense
Equipment
Events Expense
Exhibits Costs
Facility—Cleaning Service
Insurance
Interest Expense
Inventory Expense
Lease—Equipment
Licenses and Permits
Outside Services
Payroll Expenses
Petty Cash
Postage
Printing
Professional Development
Professional Fees*
Program Expense
Rental
Repairs & Maintenance
Shipping
Software
Supplies
Travel Expense
Voice & Data
Total Expense
Net Ordinary Operating Income
One-Time Revenue Items
Whale Offset
Sweet’s Development Grant
Sweet AF Gift
Spaulding Bequest
Geoadventures
Learning Studio
Total One-Time Revenue
Net Ordinary Income with
One-Time Revenue Items
13,580
12,531
2,624
20,080
6,600
400
4,145
3,345
2,330
24,406
5,014
16,800
1,126,903
5,308
2,305
2,476
25,250
3,036
18,310
1,099,983
0
7,137
0
849
78,849
5,279
78
1,077
1,408
–8,161
46,572
–314
9,144
18,049
2,951
64,776
22,168
800
29,638
641,333
20
11,202
11,973
1,084
20,897
7,762
104
4,653
3,051
182
22,064
3,991
2,311
1,010,926
–53,102
–115,609
–113,779
–46,402
4,500
10,000
20,000
20,000
175,000
10,000
50,000
24,800
81,411
6,744
1,122
600
5,250
36,764
1,050
4,500
17,340
3,885
62,810
20,820
1,120
13,420
734,167
566
79,166
4,975
1,425
1,509
12,058
30,056
611
8,602
19,526
4,008
63,064
17,481
38
12,931
702,067
599
10,138
12,113
5,892
26,948
3,760
5,039
10,233
14,500
20,000
210,272
84,800
0
–38,602
–95,609
96,493
38,398
–63,249
Fiscal year ends March 31.
*Attorney fees; accounting audits requried for federal grants greater than $300,000.
Source: Seacoast Science Center records.
Seacoast Science Center: Sailing the Shoals
15
bequests were likewise not an annual occurrence, and were accounted for separately.
Frequently, however, these one-time items made up the deficit in the operating budget.
Expenses
By far the major expense for the SSC was payroll and benefits. There were eighteen fulltime year-round staff, as well as part time and seasonal employees. Other significant
costs included the lease of the facility from Parks, the expenses involved in special events,
and professional fees. Exhibit costs included only the cost of materials and in some cases
were negative because of earmarked donations. Program expenses were also reduced by
the use of volunteers and college students for the camp programs.
PARTNERSHIPS
The SSC continued to work closely with two of the founding organizations, Parks,
because of its location, and the University of New Hampshire. Wendy characterized the
latter relationship as “better now than we ever had before.” The SSC was currently
working with more than thirteen departments across the university, including art and
history as well as business and the sciences. The remaining founding organization,
ASNH, was no longer a partner, although it sent an occasional camp group on a field
trip, and its Seacoast chapter still met monthly at the SSC.
Several of the corporate sponsors also partnered on specific projects. IBM donated
$30,000 in technology for the Gregg Interactive Learning Studio. PSNH funded an
energy audit of the facility, as part of the SSC’s Energy Conservation Initiative.
Timberland, a long-time partner, sent several hundred volunteers every year to help
with park cleanup, clearing and building trails, and other outdoor activities.
Other organizations and their representatives also partnered with the SSC. Steve
Engstrom, the aquarist, worked closely with New Hampshire Public Television as they
filmed a segment on “Our Rocky Coast” for the “Windows on the Wild” series. A
retired archaeology professor from the University of Maine was one of the leaders of a
Get Away Weekend, while a team of faculty from Dartmouth as well as UNH developed the “Great Bay to the Sea” exhibit. The Institute for Exploration and the National
Network Marine Institute shared technology and programming.
BACK TO THE QUESTION AND THE ISSUE
Rose Wood, long-time supporter of the Seacoast Science Center, looked at Wendy Lull,
president of SSC, with concern. Was Wendy serious about doubling the admission
price? If visitation went down because of the increase, there could be repercussions in
other areas, notably donor reactions. “What would they be giving money to?” she asked.
“You’d be reaching fewer people, fewer school groups. . . .”
Wendy replied that even though attendance was down to 55,000, half of its peak in
the early 1990s, the Seacoast Science Center was still reaching more people than most
local organizations. She continued,
If the only reason you’re giving to us is because of the number of people we reach, then
don’t. But if you look at the quality of the experience that we have . . . the two things
that separate us from other institutions are the quality of the live animal exhibits and the
experience you get when you get here.
16
Case Research Journal • Volume 32 • Issue 1 • Winter 2012
The issue, for Wendy, was the future direction for the Seacoast Science Center in a
world of high energy prices and reduced school budgets for travel. Even if programs
were paying for themselves, there was still overhead; “somebody’s got to pay for Jim and
Suzy,” she told Rose. The Learning Studio offered great opportunities for programs—
“it’s such a new type of museum experience that there isn’t a name for it yet . . .”—but
she didn’t think they could charge extra for it.
Rose agreed: “Donors to nonprofits usually prefer to fund bricks and mortar, or
projects, rather than people—but the people are necessary to run the facility and to raise
money, and nobody wants to donate for that!”
Wendy smiled ruefully. “Our people are what make us a unique experience. With
that perennial ‘$50,000 problem,’ how do we make sure that we continue to provide
that experience? Maybe we need a new way of doing business.”
NOTES
1. Shoal: “a sandbank or sandbar that makes the water shallow.” http://www.merriamwebster.com/dictionary/shoals.
2. Macalaster, Gretyl. (June 24, 2007). New Gregg Learning Studio opens in Rye to
rave reviews. Foster’s Daily Democrat. Retrieved from http://www.fosters.com/
apps/pbcs.dll/article?AID=/20070624/FOSTERS01/106240324/-1/services0501.
3. Ibid.
4. About us. Seacoast Science Center. Retrieved from http://www.seacoast
sciencectr.org/about/.
5. Ibid.
6. Quoted in Shepherd, Jan. (April 22, 2007). Not all is fishy at NH seacoast museum.
Boston Globe. Retrieved from http://www.boston.com/travelarticles/2007/04/20/
not_all_is_fishy_at_nh_seacoast_museum/.
7. New exhibits open! Seacoast Science Center. Retrieved from http://www.seacoast
sciencecenter.org/about/news/detail.php?news_id=30.
8. Ibid.
9. Ocean literacy. Retrieved from http://www.coexploration.org/oceanliteracy.php.
10. Marine and coastal science brochure. Seacoast Science Center. Retrieved from
http://www.seacoastsciencecenter.org/programs/groups.php.
11. Distance learning with the Seacoast Science Center. Seacoast Science Center. Retrieved
from http://www.seacoastsciencecenter.org/programs/distance_learning.php.
Seacoast Science Center: Sailing the Shoals
17
1
Seacoast Science Center: Sailing the Scholars Case Analysis
Student Name
Institution
Course Name
Instructor Name
Date
2
Seacoast Science Center: Sailing the Scholars Case Analysis
Question 1: Current Mission and a Review of Objectives and Strategies
The firm’s apparent mission is to assist visitors to learn about the history of the seven
habitats in the park. The firm was also determined to assist the visitors to learn how they can
interact with seven habitats that existed in the past. Compared to the initial focus of the firm, the
Seacoast Science Center (SSC) current mission is to expand and include both regional and global
issues that relate to the sea. To achieve this mission, the firm has developed exhibitions that are
aimed at interpreting four themes for its customers. These include the changes happening to the
sea and the sky, the Maine Gulf, the Coastal Connection of the New Hampshire, and how to work
under the sea. Specifically, the seven habitats comprised of the Wood-Lands, Sandy Beach, Gulf
of Maine, Salt Pond, Salt March, Fresh Water, and Rocky Shore. What helps SSC is that it has the
necessary facility and personnel that can offer the visitors a true connection to and interaction with
nature.
The company also has objectives that facilitate the achievement of its mission. The first
objective is to improve the financial situation of the firm without interfering with the experience
of the visitors. Another objective of the firm is to introduce exhibits and programs aimed at making
the visitors learn and appreciate the interaction between humans and nature.
Besides the objectives, the company also has current strategies to ensure that it achieves its
mission. The firm has launched the learning studio program. This together with other educational
programs cut across all ages of the visitors. Another strategy is to increase the fees associated with
admission and cut off other expenses considered non-essential.
Question 2: The Current Financial Condition of SSC
3
The current financial condition of the firm can be viewed from its financial performance at
different financial years. Looking at the revenues of the organization between the 2007 and 2008
financial years focus, there is a considerable increase in the revenue. Nonetheless, there is still a
possibility of experiencing a downward trend during the 2008 fiscal year. The company’s revenue
has increased from $897,147 to $984,374 in the 2007 and 2008 fiscal years, respectively. This is
significant to a 9.72% revenue increase in these fiscal years. From exhibit 7 in the case, it is seen
that the increased income can be attributed to the income generated from memberships, camps,
admissions, exhibits, fundraising, exhibits, group programs, and facility rentals. Consequently, the
increased revenue between these two financial years can be associated with the implementation of
new programs and exhibits that the company has in its mission and strategies.
Looking at the company expenses, it is seen that there has been an 8.81% increase between
the 2007 and 2008 fiscal years (Exhibit 7). That is, the increase in expense from $1,010,926 to
1,099,983 between 2007 and 2008 fiscal years, respectively. This increase in expense is associated
with the payroll expense increase from $641,333 to $702,067 between the 2007 and 2008 fiscal
years (Exhibit 7). From this analysis, it is evident that SSC is still not in good financial condition
and can do better to improve its situation. In fact, the operating margin ratio of the company has
been negative ever since 2005. As a result, it is evident that the company cannot depend on its
current operations to generate profit. These are areas of concern the company should concentrate
upon.
Question 3: SSC’s External opportunities and Threats
SWOT Analysis can be used to determine the external opportunities and threats of SSC.
4
For this part, the opportunities and threats parts of the firm will be analyzed. SWOT analysis is
useful in determining the external opportunities and threats in the environment of the organization.
From SWOT analysis, SSC is seen to have various opportunities it can explore. The first
opportunity is that the organization can increase the number of grants and donors. Such aids will
make the company to develop a better system. Consequently, there will be developed exquisite
experience thereby increasing the number of customers it has. The firm can also market through
advertisement its services. The company can achieve its virality and increase its reach through the
development of brochures. Such investments will help create visibility and public image.
Additionally, SSC can fill its calendar with more events. Increasing the number of events is likely
to increase the influx of visitors and as a result, increase sales.
The firm also experiences threats. The main threat is the donation competition. There is
reduced donation as other similar firms also require such donations. Competitors are increasing
their public hence attracting more donors than SSC. Another threat is reduced budgets from
schools. This has further reduced the company revenue. The company offers only a $3 admission
fee and can still not target schools. Furthermore, rising prices of energy threaten SSC operations.
The long-term sustainability plan is also challenged by the increased prices of fuel and other forms
of energy.
Question 4: Internal Strengths and Weaknesses of the Firm
Similarly, SWOT analysis is useful in determining the internal weaknesses and strengths
of an organization. From this, the main internal strength of the organization is its presence in
multiple regions. This indicates that the business has a reach to large market thereby increasing
the accessibility by different visitors. SSC also has a wide portfolio for its product. This allows the
5
company to expand the base of its customer thereby offsetting the losses that it may experience
from one category of products. The organization also has a unique facility characterized by
exhibitions of live animals. This is likely to attract new visitors as they can interact with nature in
real-time. SSC has a great workforce, which has made visitors feel the intense personal experience
and connection. The company uses the workforce to engage the visitors and request them to bring
their friends. Apparently, this retains the current visitors and increases the chances of referrals.
The fact that SSC allows visitors of all ages makes people find it a very healthy environment.
Furthermore, the programs at the organization comply with the national and state standards of the
curriculum. The board of the new entity is highly experienced with fundraising and nonprofit
organizations. Furthermore, the company has many corporate partnerships and sponsors, which
can allow it to expand its range of product offerings. The organization also offers programs for
distance learning.
Besides the strengths, the firm also has its internal weaknesses. The main weakness is that
SSC is not performing well in terms of its business promotion. As a result, the visitors may have
a low perceived value of the business. The firm has not made significant growth in the number of
visitors it receives. In fact, it has made negative progress. Also, there is no clear structure of the
organization at the firm. The admission fee is also very low, which may make some visitors
question the quality of its services. Furthermore, such low registration fees make the company
stagnate in terms of its revenue growth. Other weaknesses include the inability to recruit and
maintain donors, lack of investment in infrastructure, and having limited programs over the winter.
Question 5: Mission, Objectives, and Strategy Recommendation
a. Mission and Objectives of the Firm
6
As of now, the mission statement and objectives of SSC are properly defined, measurable,
and also specific. Nonetheless, as the organization is determined to increase the learning programs
and exhibitions, it needs to consider the expenses it is likely to incur. It is evident that the company
has had non-realistic expenses between the 2007 and 2008 financial years. These expenses are
attributed to the payroll. Expanding its services means recruiting more employees. To ensure that
it maintains its revenue, the company needs to slightly revise its mission, but maintain the
objectives. The mission could be revised to read, “assist visitors to learn about the history of the
seven habitats in the park and how they can interact with seven habitats that existed in the past
with a focus on revenue increase.”
b. Corporate and Business Strategies Recommendations
The organization should consider using a market penetration strategy in order to achieve
its objectives and to meet its mission. To do this, it is recommended that SSC should use a
conglomerate strategy for diversification. The main challenges with the SSC operations currently
include the promotion and pricing strategies. When it comes to pricing, the company only charges
$3 per adult and $1 per child as admission fees. This is a very low rate that the organization cannot
expect to be useful as it achieves to increase its financial situation. As a result, it is necessary to
increase the admission fees so that it can cater to paying the increased workforce needed for the
increased programs and exhibitions the organization is planning about.
It is also recommended that SSC should improve its marketing strategies. Currently, the
company is not focusing on advertisements and publicity. This makes it challenging for visitors to
easily note that there is such a firm offering the kinds of services it offers unless the visitors are
referred. Therefore, the organization must increase its advertising and marketing strategies to
attract more customers. Indeed, it is shown that advertisement and marketing activities increase
7
customer attraction to the company. Because the organization offers unique services, it is expected
that publicity and advertisement will attract more customers. This will imply more revenue and
hence the ability to develop a conglomerate strategy of diversification.
Question 6: Specific Actions to implement the Recommended Strategies
a. Strategies and Long-Term Objectives
SSC can achieve marketing penetration strategies through various activities. The first is to
increase admission fees. The current admission fees in the firm are $3 for adults and $1 for children
between 3 and 12 years. These rates need to be adjusted to $5 and $3.5 for adults and children,
respectively. In addition, the organization can negotiate special packages for school trips made to
the scenery.
There are also specifics for expense recommendations. In order to improve its financial
condition, SSC needs to revise some of the expenses it incurs. To do this, the organization should
consider giving customers incentives to check or pay by cash. This would help decrease the
expenses associated with card processing. The organization also has to do something on the payroll
expenses. The expenses associate with payroll increased by 32% between 2005 and 2007. On the
other hand, the revenues only increased by 23% over this time.
For marketing and advertisement, the company has underperformed and needs to do
something. A marketing campaign is expected to bring more visitors to the firm. This implies that
the revenue will, likewise increase. The company can, for instance, invest $15000 in advertisement
and marketing.
b. Expected Financial Results
8
Suppose that the admission fees are adjusted, the expected financial outcome will be
$224.881 from admission fees. This is based on the average number of visitors between 2004 and
2007. This will be true for the case where 40% of the visitors are expected to be adults and 60%
children. This expected financial increase is 206% of the average revenues for admission.
Furthermore, this strategy only applies to where the demands of the visitors are inelastic to the
financial changes’ admission fees. Suppose the demand is not inelastic and assuming that the
demand of the visitors decreases by, let us say, 20%, the admission revenue will still be $145%
above the average. It is only when the demands drop by 67% that the admission revenues will be
equal to the previously existing financial revenues. However, it is very unlikely that the visitor’s
demand will decline by 67%. Therefore, the suggested increase in admission fees will help the
organization to have a significant increase in total admission revenues.
The organization is likely to experience more loss if it does not balance between the growth
in revenue and growth in expenses. For the future, it is recommended that the company ties up the
rate of growth of payroll expenses with the rate of revenue growth.
On the advertisement, if the company invests $15000 in advertisement and marketing. This
can cause an increase in the number of visitors by 10%. Three years from now, the admission
revenue of the organization will be expected to be $202.400. Thus, the net annual income of SSC
will be $75801. This is only applicable if everything else is held constant.
Question 6 (c). Specify the results you can expect, including pro forma financial statements.
Question 7: Recommend procedures for strategy review and evaluation. Include specific measures
that you will utilize.

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