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Winnipeg Free Press - PRINT EDITION

Personnel pros avert bankruptcy

Program expansion didn't go as planned

By: Martin Cash

Posted: 01/24/2012 1:00 AM | Comments: 0 (including replies)

The organization representing human resource professionals in Manitoba recently needed to deploy some emergency leadership skills to avert financial calamity.

Facing a looming bankruptcy, the 1,500-member organization was able to negotiate with creditors, downsize its office lease and embark on some new revenue-generating schemes to manage its way to a more sustainable workplace.

At a special meeting earlier this month members of the Human Resource Management Association of Manitoba (HRMAM) learned that as of May 31, 2011 it had an operating deficit of just more than a quarter of a million dollars.

At the meeting members heard that if changes were not made and the status quo was allowed to continue, it could face bankruptcy as early as March.

Yvonne Thompson, president of the board of directors, said for a couple of months prior to the special meeting the board, which would normally meet monthly, was meeting weekly, making key decisions along the way.

"We're almost at the end of the tunnel," she said, "The light is there. It has been a long haul."

The organization has negotiated a smaller space with its landlord in the same Portage Avenue office building and is in the process of engaging members in a discussion about future developments, including the possibility of staging an annual conference (as opposed to the biennial conference that's now held).

Thompson and other members of the association blamed the situation on a misguided attempt to grow the organization a couple of years ago.

"It got too big for its britches," said one member.

A crucial element seems to have been a decision made two-and-a-half years ago to expand the offering of training programs and establish its own in-house learning centre. That meant leasing extra space, an expense that proved far too costly.

"We're really no different than any other business," Thompson said. "A business plan was put in place but like some business decisions, it did not manifest in the way that was originally intended."

The idea was that members would pay enough for the new programming that was being offering to cover the additional costs. That didn't happen.

The former executive director was ousted and a new one was installed late last summer -- Ron Gauthier, former executive director of Folklorama.

Thompson said Gauthier was "instrumental" in figuring out the correct approach.

"I don't think anyone realized the significance of the situation," she said. "We had a new board that started in September and one of our primary goals was to really dig in and find out if it is salvageable."

Apparently they believe it is.

Barbara Bowes, a member of the organization and the author of a weekly column in the Free Press on human resource issues, is hopeful about the developments.

"I am dismayed and disappointed that this has occurred but I applaud the chair and board for stepping in and turning this around," Bowes said.

martin.cash@freepress.mb.ca

Republished from the Winnipeg Free Press print edition January 24, 2012 B5

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