Opinion ID: 3002544
Heading Depth: 2
Heading Rank: 2

Heading: GSUSA’s National Realignment Strategy

Text: In 2004, in response to what it cites as declining membership, fading brand image, and “waning program effectiveness,” GSUSA commenced a thorough evaluation of its organization to determine how, moving forward, it could remain both viable and relevant. GSUSA, aided by a consultant from Columbia University, concluded that a “fundamental transformation” was necessary. In a strategy introduced in the summer of 2005, GSUSA announced a plan to reduce, by the end of 2009, the number No. 08-2488 7 of local councils from approximately 315 to 109, merging the local organizations to form larger, “high capacity” councils. These larger councils, according to GSUSA, would no longer compete for top local sponsors and media attention, would have the resources to hire professionally trained staff members, and would be positioned to take advantage of economies of scale in programming, training, fund-raising, and branding. GSUSA’s realignment plan was nationwide in scope and involved virtually every council, regardless of size or past performance. The National Board approved the realignment plan in September 2005. That winter, CEOs and chairs of the boards from the various local councils met in Orlando to discuss the realignment process. From that meeting, in which Manitou’s representatives actively participated, came the initial realignment strategy for Wisconsin. The final proposal (the “Wisconsin Realignment Plan”), formally submitted by Denise Schemenauer, Manitou’s CEO, on behalf of the affected councils in May 2006, would have reduced the fifteen local councils located in Wisconsin and the Upper Peninsula of Michigan to three. Manitou would have merged 60% of its territory with the territories of six other councils in northern Wisconsin and the Upper Peninsula7 to form a new council, the Girl 7 The other six councils involved in the proposed realignment were the Girl Scouts of the Fox River Area, Inc.; Girl Scouts of the Peninsula Waters, Inc.; Girl Scouts of Lac-Bale Council, Inc.; Girl Scouts of Woodland Council, Inc.; Girl Scouts of Birch Trails Council WI, Inc.; and Girl Scouts of Indian Waters Council, Inc. (continued...) 8 No. 08-2488 Scouts of Northwestern Great Lakes. The remainder of Manitou’s territory would have been divided between the other two new Wisconsin councils, which were to be situated to Manitou’s south and southwest. The National Board approved the Wisconsin Realignment Plan in August 2006. Not long thereafter, Manitou’s leadership began having second thoughts about the proposed realignment. Between May and October 2007, while continuing to avow its intentions to follow through with the merger, Manitou proposed three separate amendments to the Wisconsin Realignment Plan. GSUSA’s leadership rejected each in turn, choosing instead to reaffirm its support for the Wisconsin Realignment Plan. In a letter to the chair of Manitou’s Board, Liesl Rice, dated October 3, 2007, GSUSA denied Manitou’s third such proposal and stated that “[w]e will not again reconsider the jurisdictional boundaries, as approved by the National Board on August 24, 2006.” The letter concluded by directing Manitou’s leadership to sign the written agreements necessary for the merger to proceed. If Manitou failed to do so, warned GSUSA, “the National Board will take all necessary and further action in accordance with the Blue Book of Basic Docu- ments 2006.” 7 (...continued) Notwithstanding Manitou’s refusal to participate, these councils have continued with merger plans and now operate as a single council located in northern Wisconsin and the Upper Peninsula of Michigan. No. 08-2488 9 In three separate communications dated January 9, 2008, Manitou and its legal counsel informed GSUSA leadership that Manitou’s board of directors had concluded “that a merger with the other Councils currently suggested by [GSUSA] is not in the best interest of Manitou Council and its members.” Faced with Manitou’s resistance to the realignment merger, GSUSA initiated procedures later that same month to unilaterally remove more than half of Manitou’s jurisdiction. These procedures had been outlined for the first time in the Blue Book of Basic Documents 2006, which contained a new section establishing steps to change a council’s jurisdiction under a variety of circumstances, including when involved councils were unable to reach a merger agreement. See Girl Scouts of the U.S. of Am., Blue Book of Basic Documents 2006, at 28-29 (2006) [hereinafter Blue Book]. After several delays, GSUSA established June 15, 2008, as the date on which the National Board would make a final decision re- garding Manitou’s jurisdiction.