Rocky Mountain Case Analysis

Topics: Health club, Employee benefit, Vice President of the United States Pages: 10 (1377 words) Published: July 22, 2015
 Written Analysis and Communication
(WAC)

Assignment
Rocky Mountain Mutual: Promoting Fun or Fitness?

MEMO
To: Mr. Zachary Evans, Vice President of Operations
From: Joseph Mirola
Date: July 19, 2015
Subject: Fitness Center to further the interests of Rocky Mountain Mutual

Greetings Zach,
As discussed in our meeting last week, I understand that you have some reasons to close the fitness center. In order to satiate your apprehensions , I have listed out a few reasons that support my position of keeping the fitness centre operational. As a regular user, I was greatly benefited from using the fitness center. During the past 8 months, I have instituted a Wellness Program which used peer encouragement to promote use of the Fitness Center thereby resulting in greater camaraderie and team cohesiveness amongst the employees.  A detailed analysis of the company records further evince that the fitness centre decreases employee absenteeism, reduces company medical cost and increases employee productivity and proactiveness. Employees who have taken advantage of the Fitness Center miss half the number of work days than employees who do not use the fitness center. Also productivity in the Claims department has risen by 18 percent and the amount of sick days have fallen off by 5%. Investing in our most important asset – the employees, would not only improve the cost to benefit ratio, by lowering the company’s insurance premium’s towards employee benefit, but also contibute to the overall efficiency of the company. Having a healthy, happy, productive front line can positively affect our bottomline. After much analysis my recommendation would be to keep the fitness center open in order to ascertain the long term benefits for the company. Thank you.

EXECUTIVE SUMMARY
Rocky Mountain Mutual, a growing insurance company built a new headquarter complex in the remote suburbs of Utah. The distinctive feature of this branch was its state of the art fitness centre.Though the fitness center was not being used by the 65% of the employees, but the employees who used to visit the center were found to have comparatively low rates of absenteeism and low medical claims, leading to a more pleasant and productive work environment. But Zachery Evans, the Vice President of Operations, wants to close the fitness centre due to increased expenses and space constraints.

TABLE OF CONTENTS

Serial No.
Contents
Page No.

1
Situation Analysis
1
2
Problem Statement
1
3
Options
1
4
Criteria
2
5
Evaluations of options
2
6
Recommendations
4
7
Action Plan
4
8
Contingency Plan
4
9 Exhibit 5

SITUATION ANALYSIS
Rocky Mountain Mutual built a new headquarter complex in a remote suburban area in Utah. A swanky new state of the art Fitness Centre having high running cost was established for the employees. A wellness program was also instituted  that used peer encouragement and support groups to foster a culture of fitness among employees. Increased productivity levels, reduced absenteeism, and reduced medical claims were the corollary of the fitness regime.The recently promoted Vice Prsident of Operations, Zachary Evans believes that the Fitness Centre is a non commercial liability for the company. According to him, center does not add value but serves as an entertainment center for a few employees, and that the cost of running it does not justify the returns it is providing. So he proposes to shut the fitness centre and utilise the same space to accommodate the growing Corporate Information Systems department.

THE PROBLEM
Convincing Zach about the long term benefits of keeping the Fitness Center open

THE OPTIONS
1. Keep the fitness centre and encourage employees to participate by extending the...
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