South-Western - Management  
Providing the Killer Perk
Topic Strategy
Key Words child care, strategy
InfoTrac Reference A86829368
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News Story

After years of public service, Roger Brown and Linda Mason saw a need and set out to fill it. In 1986, they launched Bright Horizons, a provider of child care services for major employers. Their goal was to provide quality child care at the work site. The company currently has more than 400 child care centers for about 300 employers. Part of their success lies in the fact that they provide higher wages to their employees than their competitors, and provide benefits like 401(k)s and health insurance.

Companies are willing to shell out the money to pay for the facilities for these services because on-site child care improves productivity and morale and reduces turnover. Overall, the clients of Bright Horizons feel they get a good return on their investment.

Only about 10% of big companies provide on-site child care, so Bright Horizons has plenty of room to grow.

Questions
1.

You are a mid-level manager who wants to bring an on-site child care center to your company. How would you justify the expense and space requirements to executive management? Explain how the company could incorporate plans for this into the overall organizational strategy. Be sure to include the following in your strategic plan:

  1. Situational analysis
  2. Advantages to the organization, to the employees
  3. Resources needed and where they might come from
Source William C. Symonds, "Providing the Killer Perk," Business Week June 10, 2002.
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