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In response to the question of how sub-cultures might be impacted during times of organizational crisis, the following captures the main points that surfaced throughout our discussion of this case:

1. The impact of Laurentian's insolvency is profound and widespread, but also highly inequitable, disproportionately impacting (and further disadvantaging) northern Indigenous and Francophone communities;

2. Financial mismanagement of the institution was ongoing and very poorly communicated to all stakeholders. The way the insolvency was handled damaged people's lives, resulting in terrible hurt to employees and irreparable damage to surrounding communities;

3. It is necessary to consider: a) how deep-seeded privilege, and a lack of understanding of colonialism and oppression contributed to the mismanagement, particularly in the lack of understanding or care for how high level decisions impacted the lives of the Laurentian community, b) how post-secondary institutions are vital to communities, c) organizational mismanagement can result in profound harm to vulnerable groups;

4. Lastly, the accountability to research participants and community/regionally based research projects needs to be considered. The following ethical questions need to be explored: i) who was responsible for the data that had been harvested?, ii) what happened with dollars that had been enveloped for Indigenous communities?, iii) how were Indigenous elders compensated for the service they provided?, iv) how does one repair the loss of trust with Indigenous communities that took the risk to engage with the university?(Gustafson, et al., 2021).

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Laurentian’s state of insolvency definitively had a negative impact on the students, staff and greater community.  Specifically, the deep-rooted partnerships with the Indigenous and Francophone members were fractured, creating an organizational culture filled with betrayal, fear, and a lack of transparency and accountability.  Although universities usually have a more global perspective and are disconnected from the population in which they are located, Laurentian is in a unique position based on their geographical region.  By cutting specific programs which cater to, and employ members of their community unexpectedly, it will now take a significant amount of work to restore the reputation and affiliation with its partners.  Fiscal responsibility, targeted programs which generate student interest and open communication are all areas that will provide Laurentian’s Board an opportunity to repair the school’s organizational culture.

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Our group consolidated that there are many factors at play, but overall we identified that insolvency had a negative impact on the Laurentian Community. A member had even relayed this to “crying wolf”, after not making the financial situation known, making it a deep-rooted culture of secrecy. We agreed that the specific programs offerings and subcultures give Laurentian its culture and identity. These programs and subgroups such as the Francophone cultural elements give them a separate identity from other Ontario Universities. Overall themes we noticed in the insolvency were secrecy and betrayal, and lack of trust. Repercussions of this insolvency will be battling to determine the identity and reputation of the University moving forward. Specifically, not only to get back to “where they were before” but avoiding a culture of secrecy and find their niche course/offerings and work to become a standout University with a commitment to repairing the relationship with its subcultures.

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As a recent step towards solving the insolvency, there have been implicit shreds of evidence of adapting formulated macro and micro-economical policies and strategies by the university. The three crucial steps of resolution of insolvency as per the general recommendation of World Bank and the United Nations Commission on International Trade Law (UNCITRAL) [source: https://subnational.doingbusiness.org/en/data/exploretopics/resolving-insolvency/good-practices ]

1. streamlining insolvency proceedings,

2. establishing effective reorganization proceedings,

3. promoting creditor participation in the proceedings is being followed by the university.

For example,

1) Streamlining insolvency proceedings were evident as the university sought the Court’s and Governmental intervention. Through the Court, Dr. Robert Haché, President and Vice-Chancellor of Laurentian University, has appointed Mr. Lou Pagnutti as the Chief Redevelopment Officer (CRO). [source: https://www.laurentianu.info/redevelopment-officer-ccaa ]

2) Establishing effective reorganization proceedings were taken into account as the university has received a significant package in support of a $35 million DIP (Debtor-in-Possession) loan facility from the Province to fund the restructuring cost. [source: https://www.laurentianu.info/response-to-court-proceedings-2022 ]

3) Promoting creditor participation in the proceedings: Along with the hard work in restructuring the university administrative and academic policies and structures, the university is moving through a complex process in which they have involved many stakeholders with the assistance of a court-appointed Monitor, under the direct supervision of the Court. [source: https://www.laurentianu.info/response-to-court-proceedings-2022]

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In response to the summative question, "how may sub-cultures be impacted during times of organizational crisis," our group focused on circumstances that are common among a majority of an organization's sub-cultures with a particular focus on degraded trust and the perception of unfair treatment of stakeholders. Both issues were prevalent in the Laurentian case study, showing that the degradation of trust and/or the identifiable unfair treatment of stakeholders had a profoundly detrimental effect among most sub-cultures of the organization. The crisis of an unanticipated insolvency has sparked inferences that the university's leadership had not been forthright about the institution's financial precarity, and had instead preyed upon the good will and trust that is often afforded to the senior-most leaders by community members and employees. Dr. Straub reminded listeners to “pay employees adequately and fairly but most of all value your employees. When employees feel valued, they will bring their A-game” (Katherine Labruzzo, 2022). This violation of trust and poor treatment of their employees, to mention only one sub-culture and stakeholder, is a hierarchical betrayal, and exemplifies the deep wounds now found in most sub-cultures affiliated with the institution. These violations extend to both the "local" and "translocal" (Chatterton, 2000).

What is important to consider, from an education perspective, is the nature of a crisis. Laurentian's crisis was internal, from within the organization. Other crises (e.g., a global pandemic), particularly those external to the organization, may have differing effects on organizational sub-cultures.

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Group 4 Summary We believe that the way in which sub-cultures are impacted during times of organizational crisis depends on how trust was cultivated and structured from the beginning. For instance, Dr. Straub’s testimony makes us wonder whether there was any transparency to ensure the safeguarding of sub-cultures that were the essence of Laurentian’s identity? It would be essential for sub-cultures to be respected enough to be included in some decision-making opportunities, such as financial planning and exit strategies, so that during times of organizational crisis, they are treated with dignity.  

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Group 4 Summary We believe that the way in which sub-cultures are impacted during times of organizational crisis depends on how trust was cultivated and structured from the beginning. For instance, Dr. Straub’s testimony makes us wonder whether there was any transparency to ensure the safeguarding of sub-cultures that were the essence of Laurentian’s identity? It would be essential for sub-cultures to be respected enough to be included in some decision-making opportunities, such as financial planning and exit strategies, so that during times of organizational crisis, they are treated with dignity.  

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During the Laurentian University insolvency crisis, sub-cultures were impacted.  In particular, the people of northern Ontario. Specifically, the decisions made towards the indigenous and francophone communities. A great deal of trust in the system was lost and may take a long time to be regained. There are a few things that stood out for us when looking to describe the impact. Relationships and trust were broken. Greenfield (2021) describes Laurentian as having a broken faith with both francophone and indigenous faculty and students. Lack of transparency with employees and students and poor leadership from within and from the provincial government all contributed. The focus on money rather than thinking about the long-term impact of post secondary education on the community as a whole and giving back to the community. The lack of investment in staff and students and on education in northern Ontario led to a great sense of loss for the people of the Laurentian community.

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As other groups have posted, this insolvency had a negative impact on everyone involved: the faculty members, many Indigenous communities, the Francophone community,  and other educational institutions that fell under Laurentian's charter. Overall, this insolvency left a fear of the unknown. Not knowing if programs were going to get cancelled, if individuals will lose their jobs, etc. The biggest subcultures affected by this insolvency were the Indigenous and Francophone communities. “Many Indigenous nations were already wary of academic institutions given the long history of unethical and exploitative research that has been conducted on Indigenous Peoples across Turtle Island rather than with them” (Gustafson et al., 2021). The biggest take away from this is that the people of Northern Ontario lost access to many programs (ex: Francophone programs and specialized programs). That is why what Dr Straub said really resonated with us. That the switch to online education could greatly improve access to education for all. No longer bound to catchments or brick and mortar schools. Overall, the apparent lack of leadership, lack of responsibility and lack of communication between Laurentian and it's stock holders was unacceptable and lead to this catastrophic situation.

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Our group discussed a couple different key themes within the literature and the insights from Dr. Straub. Our first insight was how communication is paramount to organization success and positive culture. In this specific case, the university lacked transparency with all stakeholders, there was a lack of clarity regarding the future of the institution, staff positions, funding, etc. It ultimately led to the insolvency. We identified a variety of subcultures within this case: indigenous population, francophone population, female faculty, immigrants, Federated Colleges (religious affiliations). As Chatterton wrote, “Up to now, education systems have mainly helped to promote a dominant national culture at the expense of local or minority subcultures […] systems of higher education exert rather a function of national homogenization that one of local or regional differentiation (2000).” Laurention was unique in that instead of creating a homogeneous culture, they embraces different subcultures within one institution.

Within this specific example, understanding the organization location is important in understanding how subgroups/subcultures interact. Being in a prime location for both indigenous students from surround areas, northern, and francophone communities. When we think about the long term effects of the insolvency mistrust of education institutions is one, a decrease in availability for education in a location that relied on it was another. Ultimately, creating a “clan” culture is not easy and does not just occur. Dr. Straub’s lived experience through this insolvency proved just how crucial culture and subcultures can be to an organization’s success but it only comes from hiring the right people and celebrating positive organization culture.

Chatterton, P. (2000). The cultural role of universities in the community: revisiting the university community debate. Environment and Planning A: Economy and Space, 32(1),165–181. https://www.researchgate.net/publication/23538856_The_Cultural_Role_of_Universities_in_the_Community_Revisiting_the_University-Community_Debate