Warm Springs Business Plan


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The Warm Springs Initiative aims to create a combined physical and vocational rehabilitation center for wounded veterans and civilians on the site of the “Little White House” used by Franklin Delano Roosevelt.

The initiative is a partnership between the Georgia Warrior Alliance, the Roosevelt Warm Springs Institute, Callaway Gardens, and several institutions of higher education, as well as some major corporations. The rehabilitation side aims to become a national facility for treatment of, and recovery from, serious neurological disorders. The vocational aspects will complement this recovery by offering practical instruction and work activities in a variety of fields including construction, landscaping, farming, and information technology. Another avenue for veterans to return to work is through an entrepreneurship program, supporting the incubation of veteran owned businesses. As the vocational side matures and expands into newareas, the campuses will grow to form a one shop stop, constituting one of the nation's first care-to-work programs. The campuses will be within driving distance of the Atlanta metro area and Warm Springs in particular is also conveniently located near Macon, Columbus, and Fort Benning. The centrality of this location allows it to service the needs for all 3 cities (where the majority of Georgia’s 75,000 homeless live), while also using military transportation to conveniently bring patients from all over the country. Funding will come from a variety of sources, including in-kind contributions from partner organizations, as well as cash donations from individual philanthropists. Finally, the project will leverage a four to one match from the Federal government for vocational programs for persons with disabilities.

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Warm Springs Business Plan

  1. 1. source: Kåre Thor Olsen at Wikimedia Warm Springs Rehabilitation InitiativeBy: Christopher Esposo, Michael Cassady,Valeriu Tocitu, Casey Aultman, Edward Coyle,and Brian CoffeyFor inquiries please contact Chris Esposo (cesposo3@gatech.edu) or Michael Cassady(mtc26@cornell.edu)
  2. 2. Table of ContentsAuthors.......................................................................................................................................................... 1Executive Summary....................................................................................................................................... 3Industry Analysis ........................................................................................................................................... 3Product/Technology...................................................................................................................................... 8Market Research and Analysis .................................................................................................................... 11Locational and Facilities Advantages .......................................................................................................... 14Management and Partners ......................................................................................................................... 16Sustainability and Impact: Impact on the Community and the Environment ........................................... 18Critical Risks and Assumptions.................................................................................................................... 21Extensions ................................................................................................................................................... 24Works Cited ................................................................................................................................................. 29 Authors We would like to give special thanks to a team of Georgia Tech and Cornell students whoserved as consultants on writing this plan as well as preparing for and presenting thepresentation at the national summit.Senior Analysts The Senior analyst team headed up the writing of the plan, scoping out the strategy anddetails of each section, as well as providing oversight and assistance for all staff. Christopher Esposo is a graduate student at Georgia Tech in Economics andMathematics. He will complete his degree in the spring. He has an extensive background ineconomics, mathematics, business, and policy from his educational experiences. He has alsotaken on several leadership roles in the Roosevelt Institute Campus Network, a student runpublic policy think-tank endowed by the Franklin and Eleanor Roosevelt Foundation. He held a full time, client-facing, consulting position for the Global Development Group,at the Coca Cola Company (TCCC) during the summer, and was offered an extension for a part-time fall position as an analyst/project manager. In this position he dealt with many timelybusiness issues, including SOX compliance updates. Michael Cassady is studying economics and computer science at Cornell University. Hehas worked extensively with software design in numerous coursework and intern projects. Healso maintains a working knowledge of current industry technologies and understandings. Valeriu Tocitu, or Val, is an aerospace and robotics engineer. Val has worked withChristopher previously in the MIT Climate challenge project and has an active interest inapplications of technology to social problems. Val, who has worked for NASA Ames ResearchCenter and Johnson Space Center, has extensive experience with difficult technical concepts in 1
  3. 3. engineering, having won a “Best Engineer” award for his innovative approach lunar regolithheat flow analysis The senior team has worked before on other projects. The earliest collaboration was inthe Georgia Tech Ideas To Serve (I2S) competition. The competition seeks very early stage ideasseeking market-based solutions to societal, community, or environmental problems. TheRoosevelt Institute liked the idea, and published an article in the policy journal “10 Ideas forEnergy and the Environment”. They also successfully collaborated together to author the Inaugural Public Policy CaseCompetition at Georgia Tech in August of 2011. The competition was supported by the Collegeof Public Policy at Georgia Tech as well as the Roosevelt Campus Network. Envisaged as anannual event, it addresses policy relevant to a timely issue confronting the state of Georgia. Inpreparing the research for the post-Base Realignment and Closure (BRAC) program fate of Ft.McPherson, the team analyzed case studies of both successful and unsuccessful previous BRACclosings. Chris and Valeriu submitted a proposal in 2010 to the MIT Sloan School Climate ColabCompetition, which addresses the nature and extent of climate change as well as policies tomitigate it. The proposal won honorable mention accolades from the judges. Michael and Chrisentered the same contest in 2011 and submitted a proposal and dynamic system model whichaddresses the nature and extent of climate change as well as mitigation policies. The modelpiqued the interest of researchers who are working with them to refine and submit the modelfor use by the public on their websiteAnalysts The senior analyst team was aided by the efforts of subordinate analysts who helpedresearch background facts as well as write and revise portions of the plan. Brian Coffey is an undergraduate at the Georgia Institute of Technology in theInternational Affairs program. Brian has traveled to five different countries in Latin America onvarious study and research abroad trips. He spent a semester as an intern for the GeorgiaHouse Majority Caucus, before being promoted to the position of Aide to the Majority Whip,which he currently holds. He is finishing his degree and pursuing separate concentrations inpublic policy and economics in his third year at Tech. Casey Aultman is a third year undergraduate at the Georgia Institute of Technology. Sheis studying International Affairs and Spanish and works for the university in the office ofInstitute Special Events and Protocol. She spent last summer abroad in South America takingclasses, doing research, and traveling. Currently she is an intern at the Georgia GeneralAssembly in the State Senate, and will work for the Carter Center this coming summer. Casey’sfuture plans include another semester spent researching abroad, getting her Master degree,and working for either international government agencies or NGOs. Edward Coyle is a third year undergraduate at Georgia Tech, double majoring in AppliedPhysics and Public Policy. He is Research and Projects Director for the newly establishedGeorgia Tech Roosevelt Institute and participates in the Society of Physics Students andStudents Organizing for Sustainability at Georgia Tech. Upon graduation, he plans to eitherpursue graduate school or join the Peace Corps. 2
  4. 4. Executive Summary The Warm Springs Initiative aims to create a combined physical and vocationalrehabilitation center for wounded veterans and civilians on the site of the “Little White House”used by FDR. The initiative is a partnership between the Georgia Warrior Alliance, theRoosevelt Warm Springs Institute, Callaway Gardens, and several institutions of highereducation, as well as some major corporations. The rehabilitation side aims to become anational facility for treatment of, and recovery from, serious neurological disorders. Thevocational aspects will complement this recovery by offering practical instruction and workactivities in a variety of fields including construction, landscaping, farming, and informationtechnology. Another avenue for veterans to return to work is through an entrepreneurshipprogram, supporting the incubation of veteran owned businesses. As the vocational sidematures and expands into new areas, the campuses will grow to form a one shop stop,constituting one of the nations first care-to-work programs. The campuses will be within driving distance of the Atlanta metro area and WarmSprings in particular is also conveniently located near Macon, Columbus, and Fort Benning. Thecentrality of this location allows it to service the needs for all 3 cities (where the majority ofGeorgia’s 75,000 homeless live), while also using military transportation to conveniently bringpatients from all over the country. Funding will come from a variety of sources, including in-kind contributions frompartner organizations, as well as cash donations from individual philanthropists. Finally, theproject will leverage a four to one match from the Federal government for vocational programsfor persons with disabilities. Industry AnalysisPEST ANALYSIS The PEST Analysis provides an overview of the political, economic, social andtechnological forces shaping the vocational rehabilitation industry. These forces are generalenough to affect all firms in the industry.Political The two main government agencies that focus on veteran health, rehabilitation, andvocational programs are the Veterans Health Administration (VHA) 1 and the Veterans Benefitsadministration (VBA) 2, both of which operate under the Department of Veterans Affairs. Oneof the primary political pressures confronting these agencies is the increasing demand from civilsociety, and some parts of the judiciary, to more quickly determine a veterans need for care,and the existence of disabilities. In particular, the recent ruling by the ninth circuit court ofappeals demonstrates that slow delivery of care is not only potentially dangerous for veterans,but also violates their rights 3. Yet another force impacting the VA is the recent high profile public push for austerity,which while not yet decreasing the VA budget, will certainly help contain its growth in the yearsto come; and this at a time when the end of the two previous wars is resulting in an influx ofreturning veterans through 2013, with an anticipated steep drop off soon after that. 3
  5. 5. Economic Though there are certainly significant challenges facing the VA because of this influx ofreturning vets, they are one of the few departments to see an increase in the PresidentialFY2013 Budget 4. The 2012 base line has experienced a 30% increase since FY 2009 4. For 2013,the VA anticipates a budget of $140.3 billion 4, more than a 6% increase from the previous year5 . Specifically, the VHA will receive $56.58 billion in total funding ($52.706 billion in directappropriations, an increase of over $2.3 billion or 4.1%) 5. With so many returning veterans and a labor market just beginning to see a turnaround,veteran unemployment rates remain elevated, though with modest improvements. Theunemployment rate for veterans of Iraq and Afghanistan is 9.1%, following a 6% year to yeardrop during 2011. The unemployment rate for young vets (18-24) is very elevated atapproximately 33% 6. Among the unique challenges facing veterans is the fact that many ofthem enlisted immediately following high school, and therefore have neither a collegeeducation, nor private sector work experience. Further aggravating the situation for veteranswith disabilities is that many employers don’t want to deal with the potential physical or mentalhealth problems stemming from the deployments. Increased funding for vocational programs specifically targets these and other concerns,with the goal of creating more attractive hires out of veterans. Vocational rehabilitation fundingunder the VBA increased $148 million to $1.591 billion from $1.443 billion in FY2012 7.Meanwhile, according to the non-profit Manufacturing Institute, 80% of domesticmanufacturers who participated in a survey last year reported that they were experiencing amoderate to serious skilled labor shortage 6. This problem, along with veteran unemployment,could be remedied through a variety of programs that derive vocational program curricula frommanufacturers’ needs. One such program is the Ticket to Work and Self-Sufficiency program operated out ofthe Social Security Administration.8 The program is a result of the Ticket to Work and WorkIncentives Act of 1999 and is designed to help disabled Social Security beneficiaries attaingainful employment. Participants are assigned to a local Employment Network (EN), anorganization which has entered into an agreement with the SSA to provide career counseling,job placement services, and continuing support services.8 Oftentimes, transportation andother workplace accommodation are also available, depending on the local EN. Veterans mustbe between the ages of 18 and 64 with a rating of 60% or higher to qualify.9 As of March 1,2012, 13.2 million SSA beneficiaries were eligible to participate in the Ticket program and295,712 beneficiaries were actively engaged with the program at 842 ENs nationwide. 10Social The return of a new generation of warriors from over a decade of conflicts is shiftingboth the generational makeup of veterans under VA care, as well as the kinds of care theyreceive. Of the 6.33 million veterans expected to use VA medical care this year, some 610,000are estimated to be veterans returning from the conflicts in Iraq and Afghanistan. ThePresidential budget also acknowledges the growing need for mental healthcare to address theimpending unemployment crisis of these returning veterans. In particular, $6.2 billion has beenallocated solely to mental healthcare, a 5.3% increase of $312 million over the prior year. 4
  6. 6. Along with continued funding of the post-9/11 GI Bill, the FY2013 budget provides$233 million for vocational training and reentry programs for up to 130,000 veterans who havedisabilities or are wounded or ill veterans with disabilities. Additionally, $1 billion over the nextfive years has been allocated to transitioning Veterans skills into public-sector jobs protectingand improving America’s lands and resources 7. The specific job categories in this program havenot been released, but the federal agencies that will participate in training and hiring veteransare the Agriculture, Interior, and Commerce Departments, as well as the Army Corps ofEngineers 7. The VBA also administers the VetSuccess program with the goal of trainingveterans and matching them to various jobs across the country 11.Technology Technological changes are also continuing to shape the management of cases and thedelivery of care. The technology budget takes up 2.4% of the $140 billion VA budget; of that,80% goes directly to expediting the medical treatment of veterans 7. This helps to providemedical care to veterans in remote locations, as well as create a paperless claims process andrelationship between the VA’s 300,000 employees and close to 10 million beneficiaries 7. This isnot only environmentally aware but will also dramatically increase the speed with whichmedical care is delivered. Microsoft has started an initiative called Elevate America Veterans 12.It is part of their Elevate America program that aims to provide free and low cost technologytraining to people searching for employment. Since 2009, over 900,000 vouchers have beengiven by Microsoft to participate in this program. In total, Microsoft has invested over $12million into this program. The Wounded Warrior project is one of their partners.KEY SUCCESS FACTORS A successful vocational education program is one in which participants both achievecertain goals and reap substantive benefits. First, the trainees should complete the program athigh rates. Second, participants should see their annual salaries increase. Third, they shouldachieve personally defined goals outside of obtaining a job, such as increasing ones social skillsor ability to live independently 13, as these will greatly impact their quality of life andemployability. Finally, participants should be made aware of any additional services that mayaid them in their retraining. The 2011 VA study of the Vocational Rehabilitation andEmployment Program (VR&E) found that 74% of participants obtained and maintainedemployment, and 26% completed the goal of increasing independence in daily life. It alsoshowed that approximately 8.57% of veterans actively involved in any stage of training hadcompleted the program as of that year 13. This completion rate of 8.57% serves as a startingpoint for the Warm Springs program. Given this relatively low rate of completion, the VA strategic plan targets a 5% increaseby 2014 in the number of veterans completing VR&E services, and obtaining employment 16. Inthe 2010 study, of the participants who were categorized as “success” cases, 73% earned atleast $24,000 per year and over 55% earned at least $30,000 per year 13. Overall, the programsaw a 600% increase from starting to ending salaries in participants. The average wage of thevet with a disability entering the program in 2010 was 33% below the national poverty line 13. The Career, Technical and Agriculture Education (CTAE) Division of the Georgiadepartment of Education sets some guideposts for success in civilian vocational programs, 5
  7. 7. including expanded use of technology in career and technical education, professionaldevelopment programs, support for the integration of academics with career and technicaleducation, and preparation for non-traditional fields of employment 17. Currently, the GeorgiaDepartment of Labor’s High School/High Tech initiative provides students with disabilitiesaccess to academic/career opportunities. Their Five Guideposts for Success include schoolpreparation, development and leadership, work-based learning, connecting activities, andfamily involvement 18. While these factors help to make a school attractive to potential students, increases inpotential earnings remain the foremost measure of success. These increases in earnings remainrobust across age groups and socio-economic status. According to the most recent NationalAssessment of Vocational Education (NAVE) “vocational education has important short- andmedium-run earning benefits for most students at both the secondary and postsecondarylevels, and these benefits extend to those who are economically disadvantaged”19 . A majorfactor of success for the Warm Springs vocational education program will continue to be theeventual earnings of its participants. The industry has grown as the average veteran disability rating rose 11% from 1995 to 202009 . Moreover, the two highest disability categories, PTSD and diabetes, are growingfastest, indicating a large increase in numbers amongst vets with the most profound disabilities.However, many veterans continue to not take advantage of the services available throughVR&E, prompting the VA to aim at modernizing the program by 2014 13. This challenge facingveteran’s vocational programs means that for Warm Springs to prosper it must work hard atand be successful in promoting its services to potential participants. Design and Development Plans This section will briefly outline some of the programs planned as well as the necessarysteps still needed to implement them along with estimates of their cost. More detailedinformation about the programs can be found in the product section below. The golf course renovation project will expand and modernize the original 9 hole golfcourse designed by famous course designer David Ross for President Roosevelt. The projectwill integrate the best of modern techniques such as irrigation and sprinkler design, agronomicsand the latest accommodations for persons with disabilities while retaining the visionary designof the original. The renovation is expected to launch in the fall and will be headed by aprofessional golf course designer, Troy Vincent. He is currently working on a proposal that willoutline the vision for the course, as well as the staff needed. The contractors will work closelywith the wounded warriors, and other persons with disabilities to build their skill sets duringthe renovation. The cost of the design specification and bidding services is expected to amount to$300,000. The cost of construction for the finished design is anticipated to come to $5,000,000.Of this, $250,000 has already been secured as a private donation. Another $250,000 will begifted by another private donor known to the management team. $500,000 will be matched bydonations from either the Home Depot Foundation or one of three other potential donors. 6
  8. 8. With this $1 million in hand, the project will apply for section 101 four-to-one matching fundsas a vocational program for persons with disabilities. Institutional partners plan to lend their expertise as needed to the renovations.Abraham Baldwin Agricultural College will be partnering to provide education on turf and golfcourses. In addition, the University of Georgias turf development division is also joining theproject. After completion, the golf course is expected to become a self sustaining vocationalprogram, providing landscape maintenance jobs and training to persons with disabilities. Thecourse will be promoted as a national historic destination for tourists. If international experience is any guide, the typical golf tourist is more affluent than anormal tourist, bringing with him the funds to purchase ancillary services and products 22. Thisstream of potential revenue could provide a variety of jobs, including grounds maintenance aswell as retail jobs in a gift shop. Grounds maintenance workers in particular are projected togrow in demand by 20% over the decade, well above the average for all jobs 23. The project also plans to use local homeless labor to renovate the historic cottages onceowned and used by FDR which are contained in the Warm Springs campus. Intensiveinterviewing by a local law firm will ensure that those selected as participants will be suitablefor the job. The condition of some 31 potential structures on the site varies. A preliminaryassessment by a local architecture firm found that all the cottages with historical value arerestorable. The worst of them has several breaches in the exterior walls as well as unsanitaryconditions due to wildlife roaming the premises. To help with renovations, the project expectsto secure the support of the Home Depot both for monetary donations and materials. Thescope of this commitment will be further fleshed out in meetings. Georgia Tech also plans topartner and provide support on the design, architectural and engineering aspects of theproject. The program does not yet have an expected date to launch. An expert overseer will besecured. The project is anticipated to cost $5 million, of which $500,000 has been securedalready. A fundraising campaign under the guidance of HINRI will double that amount to $1million and then a section 101 proposal will be submitted to secure matching funds. After completion, the cottages are expected to be efficient and have a low cost ofmaintenance. In addition, they will provide rental space for future vocational programs locatedat Warm Springs. The rent is expected to cover any costs of maintenance associated with them,making them self sufficient. Additional programs are anticipated in the long term. The guiding principle is that theyshould become self sustaining after initial startup costs. One such possibility is an organicfarming program. The produce will be marketed both locally as well as sold regionally andnationally via an internet business. One of the first clients for the farming program would bethe cafeteria at Warm Springs, providing nutritious food for the rehabilitation patients, thevocational trainees and any tourists who visit the area. According to the Bureau of Labor Statistics, small scale farming, and in particular organicfarming, offers one of the best opportunities for new workers to enter the field 24. As such anorganic farming program is an opportune choice for clients with disabilities interested inentering the agricultural workforce. 7
  9. 9. The project will partner with an organization like Georgia Organics, a non-profit focusedon promoting sustainable foods and local farming. They offer introductory courses on organicfarming and gardening 25. The possibility of partnering with them to use Warm Springs asanother possible location for the course will be explored. This partnership would combine theirexpertise in organic farming with our network of veterans and homeless clients. For the online component, a partnership with an online organization like Local Harvest isanticipated 26. They offer the software and hosting for local farmers to connect with potentialconsumers online. In particular, a farm can set up a store on their online site and market andsell their produce through this portal. This provides a low cost entry point and demandsminimal technical expertise to get started exploring the online markets. In addition, traineescan take on the role of helping to run and manage the computer and online marketing aspectsof the store, providing a diversity of potential training. Product/Technology The vocational program consists of three different components: a job posting site,online education, and hands on training. Several job boards for veterans already exist. We willpartner with such boards to leverage this existing infrastructure. A site like HireVeterans.com,for instance, combines a reasonable entry price with high visibility. The training itself will initially focus on two broad tracks with threads potentially addedas the program matures. To accommodate the diversity of skill sets and experiences, thesetracks will provide veterans the necessary training and skills to prepare them to enter either thewhite collar, or the blue collar workforce. For veterans with physical disabilities, the instituteplans to team up with local colleges and universities to give them basic training such as a briefintroduction to computer languages. Several courses will teach how to use Excel, Word, andPowerPoint, as well as how to write a resume. Although these skills will be taught, they are notenough to operate in the modern workplace. Further, most veterans have demonstratedthrough their time in the service an ability to quickly acquire knowledge and to use it creatively.This strength will be leveraged in further designing curricula suitable for these programs.Cottage Program The 27 historical Roosevelt cottages will be rehabilitated. Originally built during the1920’s and 1930’s, these cottages played a role in the FDR administration as he ran the countryfrom the “Little White House”. Unfortunately, they have fallen into disrepair over these pastfew decades and need to be rehabilitated. The Warm Springs Institute aims to renovate the cottages using currently homelessveteran trainees from the existing homeless population of the Columbus area. A hundredhomeless from the Cunningham Center in Columbus, GA will be interviewed for these positions,from which 25 would be selected. The team has already secured $0.5 million from the state ofGeorgia for this program, and is expected to raise $5 million. Since 40% of all homeless mennationally are veterans27, the center should provide a large pool of candidates to work from. Awork cycle for this program is expected to last about 90 days, the amount of time it takes torestore three cottages. Thus, the program will use 100 homeless veterans for its duration. 8
  10. 10. Although the construction industry is currently experiencing a downturn, this programwill still help veterans find gainful employment or positions in more specialized schools. Notonly can the ability to work on these buildings shows potential employers the candidate’strainability and willingness to learn, but the veterans can parlay skills learned such as carpentry,plumbing, and painting into placements in more specialized vocational schools, making it morelikely that the candidate would avoid slipping back into homelessness. Industries currentlytargeted include plumbers and electricians. According to the Bureau of Labor Statistics (BLS), employment for plumbers, pipefitters,and steamfitters is expected to increase by 26% in the 2010-2020 timeframe28. They have amedian salary of $22.43 per hour29. That salary varies on how far along the plumber is in his orher development. After a 4-5 year apprenticeship program and 4-5 years as a journeymanplumber, master plumbers start with an annual salary of $37,506-$49,92028,29.Electricians have a median salary of $22.43 and are expected to have an increase ofemployment of 23% over the same time period30. Electricians are expected to complete a 4-year apprenticeship program before becoming journeyman electrician30. Afterwards, they lateradvance into the positions of foremen and general foremen31. As with plumbers, time spent intrade school can be credited towards the apprenticeship program29. The role of the vocational rehabilitation program at Warm Springs is not necessarily toprovide the full vocational training for these industries. Rather, the institute aims to give thetrainees exposure to these fields under the supervision of certified supervisors. Further, theteam plans for the supervisors to help refer promising candidates towards appropriatevocational schools, and to act as references on applications for admissions into these programs. In addition to helping the clients, such a program would help the Institute as a whole.The monetary and touristic value of the cottages increases as the structure is rehabilitated.Second, the cottages can be used as dormitories, offices, classrooms, and for other needs theinstitute has. Beyond these reasons, these cottages represent a monument and a link to two ofthe most challenging decades in American history, where the nation experienced the doublepunch of one of the largest depressions in history immediately followed by the bloodiest warmankind has fought to date. We as a nation can’t afford not to rehabilitate and preserve themfor posterity as one of the great American monuments.Golf Course The second “blue collar” vocational program involves expanding and completing the golfcourse originally designed by David Ross (the founder of modern golf course design) for guestssuch as FDR. The original construction only included 9 of the 18 anticipated holes. Thecompleted course will also be the first of its kind designed and constructed by people withdisabilities for people with disabilities. The program will use 10-20 trainees on a multi-monthtraining cycle which should result in the new golf course being completed in approximately 12months. Through this program, trainees will learn skills in golf course design andarchitecture/engineering of golf courses, Golf Course Construction Techniques such as:* Surveying* excavation work / earthmoving* irrigation installation / pump construction and connection* storm drainage work/ pipe installation 9
  11. 11. * cart path development & installation* grading work / rough shaping* landscape schematic design, installation, management and maintenance.* grassing: seed/sprigs/sod, seedbed preparation* soil & vegetation study / designing a preliminary plant palette based on landscape theme andclimate zone / native plant materials* turf maintenance planning / understanding recommendations on fertilizers, herbicides, etc.* Daily operational procedures required for golf course maintenance* Construction of features such as bunkers, greens, tees This program shall prepare trainees for a multitude of careers within the golf courseindustry. Landscape architect is an example of one such career. According to the Bureau ofLabor Statistics (BLS), 21,600 people were employed in this industry in 2010 with a medianwage of $29.85 per hour. This is a growing field with employment projected to grow to 25,100by 202032. Further, the growth will come from people with an existing internship and skills suchas Computer Aided Design (CAD) 32. Finishing this golf course could be considered part of theinternship, and our program will emphasize knowledge of CAD software (the particularsoftware has yet to be chosen). For the institution, the completed golf course provides benefits outside trainingcandidates. The Georgia Warrior Alliance currently uses Warm Springs as a retreat for veteransand their families. The experience would be strengthened with a fully functioning golf course.Plus, it might help promote golf among demographics that would otherwise have notexperienced it, including people with disabilities. Second, the golf course can also be used as arevenue generator from not only tourists visiting the historical site, but also from campers andhikers who wish to broaden the range of activities available at the Franklin Delano RooseveltState Park. The golf course construction will be overseen by Troy Vincent of the David Ross Society.For this project, the institute will be partnering with the new Bachelor of Applied Sciencedegree in Turf grass and Golf Course Management at Abraham Baldwin Architectural College(ABAC), the Turf Team at the University of Georgia College of Agricultural and EnvironmentalSciences, and Auburn University’s Assistive Technologies Design Studio. The plan is to apply forSection 110 funding and begin construction in the fall. The golf course itself should help with increasing tourist traffic to Warm Springs. First, itis a historic landmark as much as the cottages are. FDR originally had it built for himself, thepatients there, and any white house visitors who wanted to relax. Playing on “FDR’s golfcourse” might help to attract golf aficionados. As mentioned previously, the golf course wasdesigned by David Ross, a famous name among professional golf course designers and players.This should also attract players who wish to do the “David Ross” circuit by playing all golfcourses designed by him. This golf course will be the nations first completed by people with disabilities for peoplewith disabilities. That would be a selling point for not only the Warm Springs historic center, butfor the FDR state park in general. The golf course is already used by park campers who want toplay golf. The existence of the golf course should attract more disabled people to the state parkas it demonstrates the park has the will and the facilities to accommodate their needs. 10
  12. 12. Finally, the golf course could be used by veterans and family members visiting the area.As mentioned previously, the GWA already uses the center as a retreat for wounded veteransand their families. However, the center expects to receive veterans and family members visitingto see patients either in the physical or vocational rehabilitation program. This golf coursewould be an incentive for them to stay a little longer and maybe play a game.Training Program and Amendia Amendia has offered to spin off a company led and owned by wounded veterans.Further, it would train 500 veterans to help roll out its products throughout the US. Thisentrepreneurship program aims to foster the needed skills, experience and networks amongveterans to start their own businesses. The details on this are being presented by anotherstudent led group at the national summit for GWA. Market Research and Analysis This section will explore and analyze the market for vocational rehabilitation, breakingdown its potential market segments and their relative sizes to show how the program mightcapture and defend market share.Customers The are two initial customer groups for the Warm Springs Initiative: veterans withdisabilities and the regional homeless population. The vets will be enrolled in vocationalschooling programs through our partners or placed into specific training opportunities such asthe golf course renovation or maintenance. The homeless, including homeless veterans, willinitially be offered training and placement through the cottage restoration program. According to the most recent Point-in-Time Studies, over 75,000 individuals experiencehomelessness in Georgia 33. The majority of them are within the tri city area of Macon,Columbus and Atlanta that Warm Springs will serve. According to the Social SecurityAdministration’s Bulletin, as of 2010 the total number of Veterans receiving Social Securitybenefits approached 9.3 million 34. The total recipients of the Old-Age, Survivors, and DisabilityInsurance (OASDI) program and Supplemental Security Income in Georgia are 228,510. In theColumbus/Warm Springs region of surrounding counties Muscogee, Chattahoochee, Talbot,Marion, and Harris counties there is a total of 7,865 recipients 35. Beyond these social security benefits, military veterans with service-related disabilitiesmay qualify for additional monthly benefit payments that range from $115 to $2,471 per monthdetermined by disability severity 36. Furthermore, veterans claiming disabilities are eligible foran expedited processing of these claims from Social Security through the VA’s Social SecurityAdministration Benefits for Wounded Warriors. In comparing to other beneficiaries, the SSAcharacterizes veteran beneficiaries as being older men who are married and better educated.A full 88.3 percent of veteran beneficiaries have a high school diploma and 27.6 percent have abachelor’s degree 36. Both of these percents are higher than all adult beneficiary totals. Apart from disability benefits, there are grants available for veterans with disability bothin the state and across the nation. Eligible veterans may receive Veteran Grants for Disabled inGeorgia. For children of veterans who are eligible for financial assistance, the American Legionoffers a Temporary Financial Assistance (TFA) program providing funding to keep children under 11
  13. 13. their families’ care and out of institutions (assistance does not require Legion membership) 37.The Veterans Benefits division of Georgia’s Department of Veterans Service has seen fundingcuts on the state level in the newest amended budget but federal government funding hasremained the same 38. The Disabled American Veterans organization has a charitable service trust in which itgrants funding to programs providing service to veterans with disabilities and their dependents.It has expended over $69 million since its first grant in 1988 and the trust is a continued grantmaker 40. Its focus is in supporting long-term physical and psychological rehabilitation projectsfor the nations veterans with profound disabilities. The DAV Charitable Service Trust awards itsgrants through applications and the board of director’s funding decisions 39. The Warm Springs staff can help secure the financial backing for the stable recovery ofits clients. In particular, case managers can advise clients on what resources may be availableto them as well as aid them in applying for it. Judging by the relatively low income levels of thetypical veteran vocational rehabilitation participant, many of them may not be availingthemselves of most of these benefits. While this may partly be due to a refusal to receive suchcharity, veterans should nonetheless be given the opportunity as it may greatly improve theirfamilys home life or even allow them to live on campus during recovery. Further, some of theresources, such as the grants from the DAV, would help to secure the continued solvency ofWarm Springs. When confronted with the decision of which vocational rehabilitation program tochoose, social service agencies advise their clients to search for key differences betweenprograms and to choose the success plan that best suits them and their personal needs.Important differences include frequency of training and rehab, services offered, the setting ofthese offerings, and the medical/training staff for a program. The National RehabilitationHospital’s guidelines for people with disabilities stress examination of quality of services, whichincludes an individualized evaluation of how well the services meet ones needs and theaccreditation status of the organization 40. As Warm Springs grows and matures, it will continually aim to expand its training andrehab facilities and the range of services, including their frequency and location on campus.Moreover, it will seek to change its staff makeup as programs evolve and are eitherdiscontinued or added, so that it can appeal to as many potential clients as possible.Market Size The market for trade and technical schools brought in $17 billion in revenues in 2011and has been experiencing an annual growth of 4.8% from 2006 to 2011. There are 38,958businesses employing 156,647 employees.41 it is expected to grow by 5.3% annually from 2011to 2016.42 There havent been many variations between urban and suburban vocational coursesoffered at the secondary level of high schools. Rural schools are less likely to offer as manycourses and the courses offered are more likely to offer welding and agribusiness courses, whileless likely to offer courses in health related fields.43 The distribution of vocational classes takenduring high school is shown in Table 1 of the IES report on the high school class of 2005.44 While the general market for vocational programs has grown, the National Assessmentof Vocational Education investigated the effects of disability on the level of participation invocational programs. No distinction was made between physical and mental disabilities. Those 12
  14. 14. with disabilities were found to concentrate more on vocational programs in high school, but thepercentage of participants with disabilities is the same as the general population for post-highschool vocational education.45 The study finds that the levels of participation of people withdisabilities in vocational education has remained constant.45Ongoing Market Evaluation All rehabilitation programs suffer from the need to constantly reinvent themselves for achanging market. Our programs aim to offer training in niche markets that are expected toremain stable, such as the restoration of the cottages programs. The Warm Springs team willrely on the partner institutions who design and run the training and certification programs tomodify them for the market. For instance, Amendia knows best what startups it shouldincubate, and it’s best for the team to stay out of their way. As for the core programs, the teamwill constantly seek feedback from those employing our trainees to ascertain if the skillslearned are what the market needs, and will modify the program based on this feedback.Competition The vocational rehabilitation market is serviced by both public and privateorganizations. The private sector of vocational rehabilitation is rather small, mainly limited to inhouse rehabilitation services provided by insurance companies such as Crawford and Company,or large companies like General Electric, seeking to control the costs of healthcare for theiremployees.46 There are also some private practices and small businesses in the industry, too. 46This is nothing compared to the governments role in vocational education. Every state has atleast one, if not more, agency focused on providing vocational rehabilitation to its citizens.There are a total of 80 state agencies and many different federal programs, such as VeteranAffairs program, that operate in this field.47 These programs have relatively large budgets.Georgias vocational program budget, for instance, had a total of $152,643,434 in fundsavailable for FY 2010.48 The overall success of these programs varies widely from state to state, as indicated bytheir employment figures. The percentage of patients with job related income a year aftercompleting the vocational rehabilitation program ranged from 0% to 75% for different stateagencies between the 2001 and 2003.47 There were also large differences in the level ofincome being earned a year after completion and also the percentage of drop outs, asdocumented in a GAO analysis of Vocational Rehabilitation published in 2007. This analysisaccounted for these differences by examining the policies the agencies have in place. Theymainly found that the higher the level of integration and communication the agency has withbusinesses and possible employers, the better the agencys performance will be. There have also been a number of other studies done by the government and others toexamine what the most efficient method of vocational rehabilitation is. To help foster acommunity of best practitioners, the Department of Education allows agencies to share theirsuccessful practices on the RSA Emerging Practices website. This helps to spread and createconsensus for best practices as other agencies decide whether to adopt these policies as theirown. The Department of Education also has a page where it showcases Promising Practices.Among these are continued check-ups on a patient after they have entered the work force anda program called Supported Employment. 13
  15. 15. Supported Employment has developed via multiple studies into what is effective inrehabilitating people. As a method it includes an emphasis on competitive employment as theprimary goal, while follow-on support is maintained indefinitely as required and the supportedemployment program is closely integrated with the mental health treatment program. 49 Thereis also a summary of many different studies on the best practices in vocational education thatrecommend many of the same services and methods as Supported Employment.50 Overall,Warm Springs is in a good position to offer excellent vocational rehabilitation as it has alreadyhad years of experience with people with profound disabilities and is able to combine mentaland physical health treatment with the vocational training in a way few other rehabilitationservices are. Location and Facilities AdvantagesGeographic Location While the rural nature of the Warm Springs area may be a disadvantage in recruitingstaff, being centered between three major metropolitan areas will help to increase the numberof potential workers. In particular, Warm Springs is 1.5 hours from Macon and MetropolitanAtlanta, and 1 hour from Columbus. This puts it in commuting range of all three cities,increasing the likely pool of workers. It’s also not in any city’s traffic zone, meaning that somepeople in the southern suburbs of Atlanta may have a shorter commute to Warm Springs thanto any jobs in the downtown core once rush-hour traffic is taken into account. This geographiclocation should help with acquiring staff that will have to commute to the facility. The campus proximity to existing military installations will help bring in more clientsfrom one of the projects largest referral networks. Indeed, Warm Springs is located 1 hourfrom Ft. Benning and 2 hours from Warner Robbins Air Force base. Fort Benning is one of thelargest military bases in the United States, with approximately 120,000 military servicemembers, families, and support personnel51. The installation is already a major transit pointbetween other bases further inland and the Middle East. This would allow Warm Springs toconnect into the existing transportation network, making it cheaper and more convenient forthe military to transport patients and trainees to the facility. Although it is not in Atlanta, the center is close to the partner universities. It isequidistant to Auburn University and Columbus. Likewise, its proximity to elite researchuniversities such as Georgia Tech and Emory allow for the potential to deploy their expertiseon a short term project basis without providing housing on campus Warm Springs, the town, numbers only 478 people. Although this has its drawbacks, italso offers potential benefits in terms of providing an idyllic and peaceful environment forrecovery. Not being in a metropolitan area, land prices are also lower and the surrounding areaexperienced no violent crime at all in the 2000’s except in 200252. There are several resources in the areas neighboring the campus. The institute sits onthe site of the Franklin Delano Roosevelt State Park, the largest of its kind in Georgia. At 9,049acres, its immensity provides ample opportunity for development and integration into theoverall program. Both candidates and workers will be able to engage in activities such as hikingand backpacking, fishing, canoeing/kayaking, picnicking, horseback riding, stargazing, andbirding53. Use of the park could function as a selling point for attracting qualified doctors,therapists, and teachers, among others. 14
  16. 16. Outside of the park, trainees can visit attractions such as the National Fish Hatchery andCallaway Gardens. The National Fish Hatchery aims to restore freshwater fish and repair theirhabitat in Georgia and the rest of the Southeast. From a longer term view, the hatchery mightbecome a partner. The team plans to house the families at Callaway Gardens, which are in closeenough distance that the trainees might see their family every day. The RWSI itself is listed as a historic landmark and a tourist attraction, bringing in about100,000 visitors per year. The visitor count is expected to increase as the center betteradvertises itself as a short-trip destination to the surrounding metro areas. This should increasethe number of jobs at the center, allowing the institute to hire some of its own graduates. Thesite is already being used by the Georgia Warrior Alliance to host retreats for soldiers and theirfamilies. The rehabilitation center and vocational program should increase the popularity ofthese retreats.Facilities The partnership between the vocational program and the physical rehabilitationprogram will allow facilities to be shared (i.e., classrooms, centers, etc.), mitigating the risk thatthere might be too many or two few trainees in the program. In addition, wounded veteranswill have simultaneous and seamless access to the training while undergoing rehabilitation.This feature will reduce the time needed to recover and find employment. Further, veteransand families could be “bussed in” for both, allowing the use of military transport to be moreefficient. The Warm Springs Institute has previous experience with vocational training. It currentlyhosts a program of 150-200 people in their late teens/early 20’s, which live in the newlyconstructed 75,000 square foot dorms and take tailor-made online and physical classes. Theyare currently supervised by 375 employees of the Georgia Department of Labor. Thisinfrastructure can’t be used by the students and the trainees concurrently for liability issues.However, the basic setup of these courses could be recreated for the veterans by using somecottages once they’ve been repaired. Another building will be used temporarily for this purposeuntil then. In further developing the program, a good deal of infrastructure investments will alsobenefit the extended rehabilitation program. For example, organizations working on prostheticsare going to require high-speed broadband internet far faster than most home networks.Further, the vocational rehabilitation trainees can reside in the dorms to be built for thephysical rehabilitation patients. The families of all types of patients will be housed at CallawayGardens, which can also serve as temporary or overflow facilities should the interest and classsize expand faster than originally expected. As the vocational program expands, it willrequisition some of the completed cottages for new facilities such as classrooms and computerlabs. Initially, the program will have one computer lab composed of 20 computers (both PC andMac) which will come with preinstalled standard industry software. The main recreational facilities are “the Ruzycki Center for Therapeutic Recreation,Camp Dream, Roosevelt Memorial Golf Course and the Rotary International Tennis Center”. TheRuzycki Center can function as a gym for a wide variety of tastes with activities such as “a 25-Meter swimming pool, 440 Meter Track, aerobics, arts and crafts, NCAA Regulation BasketballCourt, bowling alley, ceramics, game room, indoor walking track, racquetball courts, and a 15
  17. 17. weight room.”54 The swimming pool is fed by the traditional springs believed in the 1920s to betherapeutic and which are the reason the center was built in the first place 54. Finally, the centeritself hosts contests such as wheelchair competitions as it contains the US Wheelchair Hall ofFame54. The center has plenty of open spaces and is located next to Lake Dream. Being a small town, Warm Springs does not offer the variety of dining options found in alarge city. However, there exist many quaint “mom-and-pop” alternatives operated by localproprietors 55. Further, the town features a classic downtown area where shoppers can peruselocal stores on foot. This may seem like a fringe benefit but it provides an authenticenvironment not often seen outside of the old south. Warm Springs is at the intersection of 3 different highways. The center is next to theRoosevelt Highway (27A), with two other roads connecting it to the state park itself. The mainhighway will be used by the military to transport veterans as well as any civilian commutersthat would need to travel there. The other two roads won’t be as highly used, perhaps allowingthe trainees and patients to use them to go to the state park or other activities close by. Management and Partners The Warm Springs initiative is a partnership of the Warm Springs institute, the GeorgiaWarrior Alliance, HINRI, Callaway Gardens and the Scott Rigsby Foundation. HINRI is a non-profit organization that aims to advance research, rehabilitation andtreatment for patients by improving collaboration amongst scientists, medical and businessprofessionals, philanthropists and public policy makers. One of their roles is to function as aventure capital firm for non profits. In this role, HINRI provides time and expertise to scope outprojects and provide leads and networking for non profits aiming to be a national leader inhealth care to open up shop, expand or otherwise launch new initiatives. The founder and managing director is Ross Mason, a native Georgian with a number ofpast and recent accomplishments. He brings with him a wealth of contacts from his time atPhillips Academy Andover, the University of Pennsylvania and Morgan Stanley. He also hasmany contacts with the public policy world from his time working for former Speaker NewtGingrich, former Senators Sam Nunn and Zell Miller, former Governor Sonny Perdue andcurrent Governor Nathan Deal, and Senators Johnny Isakson and Saxby Chambliss, amongothers. He was recognized by the Atlanta Business Chronicle as one of Atlantas rising businessstars in their 2008 40 under 40 award. Beyond these networks, he has previously raised and deployed funds in his work forprivate equity and venture firms TMP worldwide, Genesis Equity Partners and Asslan AssetManagement, as well as at a Volkswagen incubator where he assisted in investing $350 millionin 90 in-house startups. He also has further venture capital experience in raising some $100million for 4 internet startups and another $20 million for another 5 startups. In addition, hehas had time on the other side of the table managing new firms as the founder and CEO of areal estate development firm, the Madison Group, which he successfully sold in 2002 afterhaving generated up to 120% in annual compounded returns from 1993 onward. He alsocofounded and managed for three years a healthcare IT firm which assisted Blue Cross, Blueshield of South Carolina in a pilot project. Ross also has experience in the public sector as well as charities dedicated to advancingthe public health. He is the Chairman of the Georgia Department of Community Health Board 16
  18. 18. which oversees an $ 11.2 billion annual budget and was the Chairman of the Georgia Free ClinicNetwork, which provides free medical care to over 150,000 homeless, indigent, and uninsuredGeorgians, and has saved the state more than $400 million. He also is chairman of the boardfor Jacobs ladder, a non-profit aiming to change how society addresses autism, where he usedHINRI to help the organization gain contacts in Silicon Valley and raise over $1.5 million. Morerecently, he has forged a partnership with Callaway Gardens to host a summit of military andcommunity leaders to collaborate and compare best practices to serve Georgia servicemen andwomen. Beyond this, his passion for health issues has only grown since his experience as avolunteer in an aids hospital in Zambia and his own personal spinal cord injury which resulted inhis paralysis and his personal experience with the health care system. He aims to use HINRI totransform the way that medicine is practiced and to brand Georgia as a national destination formedical care and research. HINRI also has the expertise of a five member advisory board to tap. This board includesRonald E. Bachman, CEO of a thought leadership firm, senior fellow at several Health Carepolicy think tanks and former advisor to the Bush White House on healthcare reimbursementguidelines. It also includes lawyer and businessman William Ide, former president of theAmerican Bar Association. The Warm Springs Institute is located on the historic healing village of PresidentRoosevelt aimed at the treatment of Polio. The campus has since transitioned under theGeorgia Department of Labors administration to treating an array of people withdevelopmental disabilities and features a long term acute care hospital on site and a newdormitory. Outpatient services for those in wheelchairs or who have chronic conditions such asdiabetes and polio are also offered. The institute therefore has a long history of caring for therehabilitation of people with severe disabilities. The Warm Springs initiative aims to expand theservices offered on the campus to include veterans with disabilities while securing its future. The Scott Rigsby Foundation encourages all people with disabilities to pursue an activelifestyle. The Foundations namesake was run over by tractor trail just a few months aftergraduating from high school. The accident resulted in severe burns and the loss of both legs.After over a decade of surgeries and treatment, Scott would make a life altering decision toachieve more. He went on to complete 13 triathlons and 5 road races. He would also setrecords for double below the amputees in several athletic events, ultimately becoming the firstamputee in the world to complete an Ironman Triathlon. Scott travels the nation making media appearances and speaking to persons withdisabilities. His foundation began hosting family retreats for wounded warriors at the WarmSprings Dream Camp. The participants have disabilities such as traumatic brain injuries, spinalcord injuries, Post Traumatic Stress Disorder, depression, craniofacial reconstruction and sleepdisorders. The camps help them in the process of transitioning from rehabilitation to their newlives. Callaway Gardens is a man-made garden which was conceived and created by Cason J.Callaway and his wife Virginia Hand Callaway. The gardens are a wholesome environmentwhere everyone may find beauty, relaxation, inspiration and a better understanding of theworld. Located on the Callaway campus are recreational facilities such as golfing and retailshops. Lodging and a resort environment is also available. These facilities are operated by a 17
  19. 19. business subsidiary and the proceeds are used to support the efforts of the parent foundation.The site attracts approximately 750,000 visitors per year. Callaway Gardens is hosting a national summit to launch the Georgia Warrior Alliance.The families of vocational education participants and rehabilitation patients at Georgia WarmSprings will also be housed in facilities at Callaway. Sustainability and Impact: Impact on the Community and the Environment The HINRI plan for Roosevelt Warm Springs has the goal of not just revitalizing thecampus and its currently underutilized facilities, but also having a sustained positive social andeconomic effect on the entire community. A project as large as the Warm Springs initiative willadd social and economic value to its community. It is very likely that a rural community likeWarm Springs will see greater benefits from this development given the scarcity of previousinvestments in the area. Combined with its proximity to Atlanta metropolitan area, potentialoutside investments could reshape the community into a leading destination for long termmedical care and cultural tourism. The first wave of revitalization to impact the community would come from newconstruction, renovation, retrofitting and general modernization of the facilities used as part ofthe new program for rehabilitation, vocational training, and reentry programs for woundedwarriors. These renovations include adaptations to Blanchard Hall, the 32,000 square footfacility that will become the centerpiece of the “Healing Village.” But it also includes the historicrenovations of the 1920s period cottages that have either been neglected or have simply notreceived the kind of attention their great historic value should deserve. The final, and perhapsmost ambitious “construction” project would be the expansion of the current golf course into aworld-class facility. With a median per capita income of $14,872 (compared with $27,334 forthe nation and $37,655 for the Atlanta Metro area, to which Warm Springs belongs) 56, themillions of dollars injected into the community simply for construction would have a dramatic,if only temporary effect. This effect will reach many contractors and construction workers inthe area hired to complete the abovementioned construction and remodeling. According to theMay 2011 Bureau of Labor wage statistics, in the Columbus metropolitan and nonmetropolitanarea construction and extraction occupations earn an average annual wage of $30,640.Installation, maintenance, and repair occupations earn an average of $38,610. Immediatelyafter construction, building and grounds cleaning and maintenance employees will earn anaverage of $21,630 annually. In contrast to the construction’s temporary effect, the finished facilities will providelasting benefits for Warm Springs. Roosevelt Warm Springs will expand beyond servicingcivilians with limited mobility, young people with developmental or learning disabilities. It willbecome a center that treats and rehabilitates returning war veterans, expanding its staff andthe scope of their new skills in the process. Specialists in manufacturing prosthetics andtreating PTSD are two examples of professionals that have not had a role at RWS before thisexpansion. These professionals will likely relocate to the area and presumably bring whateverfamilies they have with them. These developments are also strides in creating a sustainablenetwork of long term care in the Atlanta-area. While healthcare practitioners and technicaloccupations earn an annual average of $72,740 in the metropolitan Atlanta area, they are in 18
  20. 20. contrast earning $66,670 in the Columbus area. In the case of healthcare support occupations,the Columbus annual wages are roughly $4,000 less than the Atlanta area wage. Warm Springs will take a holistic approach to rehabilitation, which will include thefamily. The spouses and children of soldiers in rehabilitation programs will be encouraged tojoin and stay with them for the duration of their treatment. For some of these families, thismight not be a viable option for financial or other reasons. RWS will do everything it can toincentivize families to join their loved ones at Warm Springs. The humanitarian and healingeffect of this will be better for soldiers and will contribute to a higher success rate. Theeconomic and social effect will be that more people are engaged with the Warm Springs-Callaway community, bringing more business and increasing the footprint of the program. Roosevelt Warm Springs already has four major attractions for it as a tourist destination.These are: the golf course, the Franklin Delano Roosevelt state park, the historic value of theLittle White House and other cottages, and the Lake Dream complex. Just over an hour outsideof Atlanta, and with close proximity to Callaway Gardens, RWS should be a relatively majortourist attraction. But it has failed to attract the amount and type of clientele that would have arevitalizing effect on the community. With the new construction and rejuvenation of the entirecampus, this will be the ideal opportunity to start a major push for tourists to the area. Arebranding of the area as an ideal destination for Golf Tourism will have a major effect on thearea, simply by the nature of the target clientele. The typical golf tourist is middle aged (40-55)or retired (55+) 57. Over two-thirds of golf tourists in the United States have incomes above$50,000 57, which is almost double the per capita income of the country. Over eighty percent ofgolf tourists are male 2. The major reasons for the recent stagnation in golf membershipsacross the country is the fact that golf takes an enormous amount of time and is not familyoriented; a typical round of golf lasts four hours 2. RWS can alleviate these concerns byproviding on site or local activities for wives and children, such as a day touring historic cottagesor Callaway Gardens while the father is on the golf course. Through word of mouth and amodest PR campaign, the campus can become a major tourist destination for the metro Atlantamarket. The final method for increasing the social and economic impact of RWS in thecommunity would be through the creation of strategic partnerships with various institutesacross Georgia. A strategic partnership with Fort Benning could allow service membersstationed there to engage in a relationship with rehabilitating soldiers. This partnership couldallow veterans and their families to have access to services and facilities at Fort Benning whichwould help facilitate relationship building with current service members. Furthermore, Georgiais home to one of only six senior military colleges in the nation. North Georgia College & StateUniversity is home to 5,500 students 58. This would be an ideal institute to create some sort offormal relationship in the form of medical training for students, relationship building betweenveterans and students, and volunteer service for all NGC&S students. Finally, Georgia has several top notch nursing schools. Students there could participatein various seminars or even provide professional help towards the end of their studies. Thiswould be a beneficial relationship for all parties involved: students would gain valuableexperience, RWS would gain more professional help, and the recuperating soldiers would gainthe benefits of having more helping hands than just the full-time staff, as well as the attentionof young people. RWS could even investigate the possibility of having revolving groups of 19
  21. 21. nurses or nursing students instead of hiring all full time staff. RWS could work to develop newor existing programs in Georgia’s nursing schools to ensure they will send an agreed amount oftheir nursing students to Warm Springs every year. This pledge would certainly cut down oncosts for RWS having helping hands assisting the full time staff. Additionally, this would exposea greater amount of people and future nurses to the activities going on at this wonderful centerultimately helping to recruit full time staff. Bringing more people into contact with the campus would be beneficial in two majorways. Firstly, it will likely create more full time employment here, which will raise thepopulation, the standard of living, and have the general effect of bolstering the local economy.The second major effect comes from increasing the temporary visitors to RWS. Whether thesepeople come here for tourism, for a school program, or some type of internship, they will havea positive effect on the local community. These two means of contact with the campus willcertainly be achieved through the healing village, tourism, and institute partnerships describedabove. The unification of these social and economic factors will create a network of contacts inthe area to help further develop it and draw more growth. While development and traffic increase bring obvious economic and social benefits,these factors will also impact the environment. Warm Springs is committed to minimizing thisimpact as well as looking for ways to improve the local environment. The plan includes anexpansion of the existing 9-hole golf course into a modernized version of the original golfcourse that was designed by Donald Ross. Its development would finally complete the planRoss presented to Franklin Delano Roosevelt in 1926 . Such a project would be undertaken soas to minimize environmental damages, with the plans for constructions following many of therecommendations by the United States Golf Association for environmentally friendly golfcourses, which were developed by golf and environmental experts. They will take measures toensure that all areas outside of the constructed golf course are repaired and to ensure that thesoil is of high quality and the right mixture to fit in with the surrounding environment. RWS isconcerned about the impact of fertilizer and run off of pesticides on the environment and willaddress these with best practices. Overall, the completion of the handicap friendly golf course,as originally presented to Franklin Roosevelt, will have minimal long run environmental impactand will stand as a testament to the continuing evolution and improvement of FranklinRoosevelts living legacy in Warm Springs. Other projects that are being considered are the renovations of the cottages in WarmSprings. Their condition varies over the entire spectrum, but with all cottages needing someform of renovation. The environmental impact of the cottage renovation is uncertain and willrequire an environmental engineer assessment to deal with the problems of lead paint,asbestos, or other items in need of fixing. The renovation of the cottages will prove helpful inremoving these environmental hazards and improving the health of Warm Springs by ensuringthat they will not have a chance to contaminate the surrounding land. There is also the possibility of starting an organic farm at the Warm Springs Institute.Organic farming has been shown by a thirty year “Farm Systems Analysis Trial” to outperformconventional methods in years of drought, builds up the soil (making the practice moresustainable), uses 45% less energy, produces 28% less greenhouse gases, and can be moreprofitable than conventional farming methods. Another benefit produced by organic farming,is since it is more work intensive, it would provide more jobs than a basic farm. 20
  22. 22. Critical Risks and AssumptionsPORTER 5 FORCES The following section overviews the five forces that impact the competitive intensity andtherefore potential profitability and attractiveness of the vocational rehabilitation industry.Competitive Challenge Establishing a vocational school requires national or regional accreditation.59 The capitalrequirements vary depending on whether it is online or has a physical campus. For instance, amodestly sized IT school with 2 classroom facilities, office space, server room, and computer labcosts $160,000 for equipment and $3,500 a month in rent for 2,500 square feet in San Diego.60 Moreover, a school with an online component can service many students who would notbe able to regularly commute to campus. This may reduce the overall number of schools byallowing those situated in large cities to service students in the surrounding suburbs and ruralareas. Some schools such as those established by national brands like MIT, UC Berkeley andStanford may even have national reach for their online components. But while the costs and barriers to establishing schools are not insignificant, manyexisting schools have to turn away students because demand is currently greater than theircapacity. Meanwhile, the number of perspective students has increased dramatically due to therecession and millions of people being laid off and in need of retraining.61 A report fromINC.com states that the revenue for trade and technical schools grew by a brisk 8.12% and15.22% in 2009 and 2010, respectively.62 According to Sageworks, profit margins were a healthy10.66% in 2010. These increases in demand are expected to result in better profit margins andthe entrance of new competitors.61Threat of Substitute products or services There are few substitutes for a vocational education, especially during times ofeconomic distress.63 The James Irvine Foundation, the W. K. Kellogg Foundation, and the NellieMae Education Foundation all supported a report by the Harvard Graduate School of Educationentitled Pathways to Prosperity.64 The report details the benefits of vocational education andthe support it receives from charities such as the Bill and Melinda Gates Foundation. 64Companies such as Duke Energy also provide grants for students to take courses.65 Agovernment report highlights how successful these programs can be for veterans, documentingan average salary increase of 623% for all participants and an increase of 593% for those with aserious employment handicap.66 As used in the report, a serious employment handicap is asignificant impairment in a vets ability to prepare for, obtain or retain employment consistentwith his or her abilities, aptitudes, and interests, and which results in substantial part from aservice connected disability.Bargaining Power of Customers The US government has programs actively encouraging veterans to go into vocationaltraining. They estimate that such training will increase their salaries by approximately 600%.66Meanwhile, civilian clients are in need of these services, especially during the current malaise. 21
  23. 23. Moreover substitutes do not exist that provide the same level of income enhancement for thesame price.63 Overall, vocational education is needed if certain jobs in the American economyare to be filled, since Bachelor degrees do not cover the same fields or methods of teaching.35Bargaining Power of Suppliers The main organization of educators is the Association for Career and TechnicalEducation.66 The human capital represented by them and those who produce the coursecontent are the parts of the supply chain with the most bargaining leverage since hardware likeservers come from many suppliers. In particular, the creation of the courseware can be verytime consuming, with one hour of courseware/training taking from 33 hours to 750 hours tocreate, depending on its complexity.68 Many programs therefore resort to purchasing or leasingthird-party courses and materials, although their quality can be questionable when comparedto courseware created by the provider.69 A study by Bersin & Associates in 2009 revealed thatthe largest 6 companies in Learning Management Resources, the distributors of such e-learningcourseware, represent about 50% of the market.70Intensity of Competitive Rivalry There are a large number of firms in vocational education. According to the NationalCenter for Education Statistic, some 1426 vocational schools exist.71 Among these, there is agreat diversity in the fields covered.72 There does not seem to be much competition betweenfirms, as both online and offline schools continue to exist and be profitable with no single typeof education proving to be better than another.Program Risks The vocational rehabilitation program is tied in with the overall rehabilitation programas a one-stop-shop for wounded veterans. Should the rehabilitation program prove toooptimistic or suffer setbacks, the vocational program could be affected. Potential problems therehabilitation program may suffer include a shortage of needed staff, higher healthcare costs,and the military deciding not to transport as many wounded soldiers to Warm Springs forrehabilitation. This would result in a shortage of clients for both programs. Due to its proximityto several metropolitan areas, there is a civilian population that can be used to substitute aswell as complement the veteran program in both the physical and vocational rehabilitationprograms. The vocational program might suffer from a shortage of qualified staff despite itsadvantageous location between the cities. The Warm Springs team will mitigate this bydesigning the programs to require as few on-site workers as possible. Online courses will beemphasized, as will courses at partner universities. As mentioned previously, the professors willteach online whenever possible. However, this may not be enough to prevent shortages.Should those arise, the team would consider sharing resources with other governmental ornonprofit organizations. For instance, the project might approach the VA about using theirtherapists to help select the homeless population for programs at the projects expense.Market Risks Wounded veterans returning from deployments are the main clientele of both thephysical and vocational rehabilitation programs. Although stable, this market is not sustainable. 22
  24. 24. The US has already pulled out of Iraq and is in the process of pulling out of Afghanistan.Assuming no further major US military commitments in the near future, the withdrawal is goingto reduce the need for the vocational services beyond the 2016 timeline as the returningveterans successfully use programs such as the one described here to find gainful employment.Even if another war were to occur, advances in technology might mean fewer chances for injuryon the front lines. Further, the Pentagon aims to reduce the size of the armed forces by 80,000soldiers overall73. As the number of returning veterans declines, the program would graduallyshift toward employment training towards the entire population of people with disabilities. More and more states are creating their own vocational programs to cater to bothmilitary and civilian citizens, resulting in a growing market. This market is based on convenienceand training programs, not cost. Therefore, it’s unlikely that any state competitors would try toundercut us by price. Warm Springs would be more than willing to borrow their ideas andtechniques to save the military badly needed funds. Should a private organization create aprogram that can provide adequate training at lower costs, the program might approach themto offer the use of Warm Springs as an incubator for their ideas. On the civilian side, the period of low unemployment might end. Such an action wouldalso see a reduction in the homeless population, and a fall in persons with disabilitiesunemployment rate. Should that happen, the vocational program would be willing to focus onother at-risk or vulnerable groups, shift its focus between the needs of the three metropolitanareas it borders, or happily scale down.Economic Risks Although recession resistant, the nonprofit healthcare and vocational rehabilitationprogram is not immune to the larger trends in the market. As mentioned in the BusinessEconomics section, each program would be self-sustaining in funding to permit it to operateindependently from the others. This arrangement minimizes the possible damages such as aparticular donor pulling out or projections being too optimistic. The vocational programs will also be divided into two categories: core and optional. Thecore programs are those that have to exist for the donors to continue funding the program. Forinstance, the section 110 funding requires people with disabilities to continue receiving the 4:1matching Federal Funds. In worst case scenarios, the funding may be shifted from the optionalto the core program. To avoid incentivizing complacency among the core programs, the alliancewill expect the core programs to remain self-sustaining and will be inspected quarterly toensure they meet the standard. Failure to do so could result in them being removed from the“protected” list. The procedure for this is yet to be finalized. Each individual program is expected to maintain a reserve fund equal to its expectedexpenditures within one training program (as mentioned in the Product section, the trainingcycle varies by program). This reserve fund should help the program meet unexpected fundingshortfalls such as an unexpected spike in costs, a drop in enrollment below its break-even point,and a loss of funds at any point within the operating cycle. This fund is meant to cover anyshort-term budget crunches, not to cover structural deficits, hence its limited size. In extremelyrare cases where this fund is not adequate, the individual program is allowed to get credit.However, it will be limited to borrowing only against itself, and can’t divert any credit fromother programs. 23
  25. 25. Every nonprofit program has to worry about structural deficits that would occur as aresult of donors pulling out or the program’s projected costs being too optimistic. Should suchshocks occur, the program would be allowed to use its reserve fund to tidy itself over until iteither cuts costs or finds new donors. Should this take longer than one training cycle, theprogram may appeal to be allowed to borrow credit as long as it proves it can return to beingself-sustaining within a reasonable period of time. Risks to funding stem not only from charitable donations, but also from governmentalsources. Since the recession began, governments within the Western world have beenundergoing austerity. The military budget is not immune to these austerity measures and isexpected to experience $478 billion in budget cuts over the next 10 years. Although unlikely,there’s no reason to believe disabilities programs won’t be affected. While no one cancompletely work around the austerity that’s coming, the Warm Springs Initiative team believesthat the worst effects of austerity can be mitigated. The team doesn’t rely on a single fundingsource; instead it draws from a mixture of government, corporate, and nonprofit sources offunding. Not all our funding sources are national, as some donations come from nations such asthe United Arab Emirates (UAE).Development Risks The risk exists that the projected schedule for any given program is too optimistic, eitherin its estimate of the time required to develop each training program, or in its assumptions onhow long it will take to find adequate funding for it. In recognizing this risk, significant marginswill be built in. Further, the programs are independent of each other to ensure that a delay inone does not cascade into a delay in others. Finally, programs whose completion is necessaryfor funding purposes will be given priority. For instance, the programs needed to get the fourto one Section 110 match will have the highest priority, as the team plans to use that money todevelop other programs. ExtensionsThis section will provide possible future venues of analysis and development as the WarmSprings projects mature. They serve as a sample of ideas the team has scoped on potentialfuture developments. The subjects mentioned here were too large and complex to be consideredproperly within the scope of the main business plan documentation. Nevertheless, these topicsmust be addressed if the Warm Springs initiative is to succeed in the mid and long term.Economic Development and Tourism Based on a critical study of the Warm Springs area and the needs of both the vocationaland rehabilitation program, several possible recommendations for future development havebeen written out. In general, the team believes that a broad holistic approach to economicdevelopment is the key to promoting opportunities in the area, which can be exploited bytrainees, as well as make the area more attractive for investors and institutions. The mission of the vocational program is manifold, yet, the programs mission can easilybe characterized as possessing three broad threads: 1. Endowing the trainees with in-demand skill sets 24
  26. 26. 2. Providing entrepreneurship opportunities to the trainees 3. Connecting trainees with a geographically diverse network of alumni, partners, and potential employers Any strategy aimed at fulfilling the above criterion, must also focus on the economicdevelopment of the surrounding area. Greater economic development in the local areaexpands the opportunities provided to the trainees, to engage in their own independent pathsof economic activity outside of the main program. These could include finding apprenticeship,engaging in an internship or participating in a joint local venture. In the case of Warm Springs, the town has an excellent opportunity to build a brand foritself and its neighboring localities. A cursory informal survey taken on the GT campus revealedthat outside a particular demographic of policy-oriented students, the town of Warm Springswas unfamiliar or unknown to most of the graduate and undergraduate populations. More surprisingly, an informal interview of Roosevelt Institute Campus Networkstudents from outside of Georgia revealed that while all knew of his base in Hyde Park, scarcely1/10th of them recognized the significance of Warm Springs in the President’s legacy. It seemsreasonable to conclude that the vast majority of Americans nationally and in Georgia, are alsolikely unfamiliar with the president’s connection with the place of Warm Springs. This ’tabula rasa’ affords the project a unique opportunity to engage in the town’sdevelopment and thereby increase outside buy-in and infrastructure investment, while forginga relationship that could ultimately help build GWA’s brand nationwide as an attractivealternative for wounded veterans and other individuals with disabilities. In taking the first steps to analyze the citys brand potential, careful study must be madeof what current assets and activities make the locale unique and attractive. These include:historic sites, cultural and entertainment areas, any local attractions/parks, and festivities. A cursory reading of the town’s current activity calendars reveals eventscommemorating a few major battles in WW2, including the Normandy Invasion in the summerand Operation Market Garden in the early fall. Any study on the town’s tourism potential andbrand development should look at participation rates of these activities closely. Any consumerwill ask themselves at least these 3 simple questions before endeavoring on a trip: 1. Why would a consumer visit Warm Springs? 2. Where can I get more information? 3. Which sites in town, or in the adjacent area is interesting? Currently, the most common answer to question 1 may be the historic nature of thesite. However, as stated previously, this facet of the town, although legitimate and interesting,has not been effectively advertised to the general public. Likewise, the second question alsoneeds greater focus and improvement. The current town website is poorly constructed anddoes not sell the town’s assets attractively. This could easily be remedied by hiring aprofessional web developer and engaging in a cost-effective internet advertising campaign. However, it is the third question where the project sees the most potential. WarmSprings, if it is known to an individual at all, is mostly associated with the 32 nd President. Thereis potential to explore new connections of this association, which could bring the town newmedia attention as well as publicity. 25
  27. 27. FDR is often thought of as the “People’s president". Indeed, he presided over therecovery from the Great Depression in the 30s, established a robust social safety net forAmericans, and guided the country through the Second World War. Despite coming from anaristocratic background, FDR the man, was also a down-to-earth individual. It is said that hisfavorite foods were hot dogs and toasted cheese, and his favorite activity was fishing. A new and creative way to extend this brand into the town is to host a national Hot dogfestival during the 4th of July. Georgia is known for its unique variants of food. In particular, theneighboring cities of Columbus and Macon are especially known as one of the best producers offrankfurters in the state. A festival of this sort can capture new market segments not based ondemography (age, income, ethnicity etc.), but rather geography and personality traits(adventure, relaxation, excitement, fun etc.). A well-defined “food” brand could help the townof Warm Springs distinguish itself for populations otherwise unfamiliar with the presidentialheritage of the town. Further, a well executed annual event could help improve the brand forthe state of Georgia. The hot dog festival could unveil one such example of a signature food for the town andthe institute, "the Good Time Franklin", a hot dog with periodic slits along it to allow marinatingin alcohol. It would also be spiced so as to complement the flavoring and to symbolize a zest forlife and adventure. Roosevelt came to office during the end of the prohibition era. He presidedover the end of prohibition, helping to accelerate it along by signing into law the CullenHarrison Act, which legalized the sale of 3.2 beer and light wines. With his signature, he tookon an iconic status by saying, "I think this would be a good time for a beer." With prohibitioncoming to an end, much of the nation agreed, as the common man could once again consumealcohol without fear, a pleasure largely enjoyed by the wealthy against whom the law was oftennot enforced.A Tutorial System for the Vocational Program The key to a successful vocational program will depend on the quality and nature of theinstruction. Measuring success in instruction is often difficult . There are numerous rankings ofuniversities, for example, but almost are determined on incoming student GPA and test-scores,instead of comprehension and learning while in school or post-graduation success in the jobmarket. Thus, education is viewed to many as a black-box , which few can penetrate. The lack ofscrutiny and accountability can lead to ever-increasing costs with little corresponding benefit toshow for it. That scenario must be avoided by the vocational program at all costs. However, how ought the vocational program to be run in practice? Traditional lecture-based instruction is fine, but often times this process lacks actionable and practical material andfocuses too much on theoretical perspectives. Further, for a significant number of veterans, thismethod of learning may have played a role in choosing a trade or a military career as opposedto continuing on to higher education in a 4-degree college or university. Thus, imposing this instructional pedagogy may not be most appropriate for ourwounded warriors. Instead, a more self-directed learning style may be apt to induce bothinterest and mastery of material. Lectures are a form of passive learning and while they are thepredominant vector of instruction in the United States, they are not the only establishedclassical style of education. A minority but tremendously successful alternative practice can be 26
  28. 28. found in the Ox-Bridge tutorial system pioneered in Oxford and Cambridge University inEngland. This style of instruction is usually held with smaller classes of approximately 10, andinstead of listening to lectures by teachers, pairs of students alternate to study, research andpresent different topics in the course curriculum. During the presentation, the student’s peersare given a chance to critique the trainees work. The instructor in this case serves as a morepassive referee of active engagement and discovery. Within the United States, this system has been implemented in several elite universities,including Williams College in western Massachusetts. Currently several dozen tutorial coursesare offered there, ranging from higher mathematics to literature. Research into educationindicates that an Ox-Bridge style of instruction is more efficient at forming mastery and interestamongst pupils. Further, this style of learning is also more easily extendable to automation andtechnology aiding implementation, which will help cut costs in the longer term. Newinnovations in education like automated online coursework, such as those from StanfordUniversity and MIT online coursework, require students to actively direct their educationalexperience, while still providing a structural framework of critique in the form of onlineexaminations, forums and homework assignments. What’s more, standardization of the software architecture could allow for companies toeasily deploy their own proprietary course and instructional material to Warm Springs, whichwill make the time spent more attractive to the potential employers as well as minimize coststo all parties by reducing the number of instructors and other education infrastructure neededonsite. In this framework, Warm Springs would offer potential employers the physical spaceand basic IT infrastructure for their training, with some on-site faculty expertise. This wouldreduce the total cost of training for the employer, providing an incentive to engage WarmSprings in these vocational programs.Cottage Program The team proposes to have the 27 historical cottages be rehabilitated according topreservation standards. That includes rules such as using original material and constructionmethods. This is a more specialized niche market that would pay more than “simple”construction. This would require the trainees to be supervised by a PhD in the time period: the1920’s-1930’s74. The team is proposing the Roosevelt Institute use its contacts among historiansfrom the Roosevelt Era to find those willing to supervise and train the clients. The national market for preservationist skills does not get much press, but it issignificant. Significant northeastern cities had grown during the late 19th-early 20th century. InCambridge, the Cooper-Frost-Austin house dates from 1681, older than the nation 75. In NewYork State, a thorough and comprehensive approval process is required to begin renovation76.We have not done an industry analysis, but are confident that the job situation for workers inthis industry is better than the overall construction industry. Even outside the Northeast, trainees can expect to find a healthy market. The GeorgiaTech Foundation recently had a spat over demolishing the Crum and Foster’s Building from the1920’s77. Atlanta has several historic churches from the late 1800’s, including the Friendship 27