Preparing for Strategic Restructuring
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- Edward Aron Davidson
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1 Preparing fr Strategic Restructuring Online Assessment Tl: Questins Strategic Restructuring Defined Strategic restructuring ccurs when tw r mre independent rganizatins establish an nging relatinship t increase the administrative efficiency and/r further the prgrammatic missin f ne r mre f the participating rganizatins thrugh shared, transferred, r cmbined services, resurces, r prgrams. Strategic restructuring ranges frm jintly managed prgrams and cnslidated administrative functins t full-scale mergers. Such partnerships are distinguished frm less frmal cllabratins in that they typically invlve a cmmitment t cntinue fr the freseeable future, shared r transferred decisin-making pwer, and sme type f frmal agreement. The Partnership Matrix, shwn belw, presents a visual representatin f the range f partnership ptins described abve. Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 1 f 9
2 The Strategic Restructuring Assessment Tl The purpse f this assessment instrument is t assist yur rganizatin in gaining a better understanding f the ptins fr partnership, key success factrs and challenges, and its wn readiness t undertake a strategic restructuring prcess. The questins are designed t stimulate thinking and discussin abut yur rganizatin s strengths, assets, and challenges, and hw yu might leverage, strengthen, and/r address thse thrugh bth a thughtful explratin prcess and if apprpriate a partnership with anther rganizatin. These gals are best accmplished thrugh candid discussin within the rganizatin, including representatives frm the bard and senir staff. Seeking varius perspectives frm within yur rganizatin enriches the discussins, and ultimately prvides better guidance regarding strategic restructuring ptins. We recmmend that yu walk thrugh the questins belw as a grup, recrding yur answers tgether and then entering them int the nline instrument nce yur discussins are cmplete. After cmpleting the nline versin f the assessment, yu will be presented with a custmized reprt designed t give yu feedback, infrmatin, and resurces specific t yur situatin. Mtivatrs/ Desired Outcmes 1. What gals, r desired utcmes, des yur rganizatin seek t achieve thrugh a partnership with ne r mre ther rganizatins? Check all that apply. We want t expand ur prgramming either the range/scpe f prgrams ffered, r the numbers served We want t cnsider pprtunities t expand ur gegraphic scpe; i.e. expand ur prgrams int new cmmunities/sites. We want t imprve ur utcmes get better results fr thse we serve r therwise increase ur impact. We want t reduce perating/administrative csts by sharing thse with thers We want t develp r access higher level perating, administrative expertise We want t develp r access higher level prgrammatic expertise We want t develp a strnger/mre effective vice 2. What ther mtivatrs, r driving frces, are leading yur rganizatin t cnsider a partnership? Check all that apply. Envirnmental shifts (e.g. changing demgraphics) require changes in prgram mix r prgram delivery Financial challenges/pressures Cmpetitin fr funding, staff, dnrs and/r clientele Challenges in meeting external standards and/r requirements (e.g., in cntracting, r evaluatin) Our Executive Directr is retiring/departing and this is an pprtunity t explre leadership ptins We have sme external pressure (frm a funder r parent rganizatin) Our bard s size and/r level f invlvement has drpped and/r we ve had difficulty recruiting bard members with the skill sets needed. Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 2 f 9
3 Financial Psitin 3. Where des yur rganizatin generally fall n the cntinuum shwn belw? Enter a number, 10 (strng) t 1 (weak). The descriptins may nt fit yur rganizatin exactly; select the number that mst clsely represents yur situatin Strng Weak We can cmfrtably fund all rganizatinal peratins and services, and we have a surplus t fund reserves. We have been able t fund ur peratins and services this year withut making any cuts in expenses, and anticipate the same next year. We are keeping ur head abve water fr nw. We will have a deficit this year and are nt certain that we can make any further cuts in expenses withut harming service delivery. We are in significant financial truble with multi-year deficits that make ur future very uncertain. 4. Where des yur rganizatin generally fall n the cntinuum shwn belw? Enter a number, 10 (strng) t 1 (weak). The descriptins may nt fit yur rganizatin exactly; select the number that mst clsely represents yur situatin Strng Weak We have little r n debt, greater access t lans/lines f credit than we need and/r have excellent access t liquidity. We are managing any debt with great success and have gd access t liquidity. We are managing any debt adequately and/r have sme access t liquidity. We are carrying mre debt than we shuld and/r have minimal access t liquidity. We are carrying mre debt than we can service and/r have pr access t liquidity. 5. Hw diversified are yur funding streams? Very diversified n ne surce (gvernment, fundatin, individual, earned incme) is mre than 25% f ur ttal revenue Smewhat diversified we have a variety f funding surces and nne prvides mre than 50% f ur revenue Minimal diversificatin f funding; ne surce prvides the majrity f ur revenue, with several ther small funding streams Single surce funding Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 3 f 9
4 6. Hw stable are yur funding streams? Very stable we d nt expect t lse grund with any f ur current funding surces Smewhat stable we d nt expect t lse grund with the majrity f ur funding surces Nt sure there is risk t a certain percentage f ur funding surces Smewhat unstable there is risk with a majrity f ur funding surces Very unstable we re at risk f lsing large chunks f funding in the very near future Administrative Capacity 7. Hw wuld yu describe yur current capacity / need in each f the fllwing administrative areas bth in terms f staff, and systems? SCALE: 1= we are struggling and culd use mre capacity / expertise... 3= ur current systems/staff are meeting ur needs... 5=we have excess capacity and culd pssibly share this with ne r mre ther rganizatins Finance / Accunting Fund Develpment Marketing and Cmmunicatins Infrmatin Technlgy Human Resurce Management Purchasing Quality Assurance / Imprvement Cntracts Management / Cmpliance Measurement / Evaluatin Staff rate 1-5, r zer (0) fr nt applicable Systems rate 1-5, r zer (0) fr nt applicable Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 4 f 9
5 Facilities 8. Hw wuld yu describe yur current capacity / need with respect t facilities? (This refers t the physical space that yu wn r use fr prgram/service delivery and administratin.) 1: We are struggling and culd use mre r mre apprpriate space 2 3: Our current space is meeting ur needs 4 5: We have excess space and culd pssibly share this with ne r mre ther rganizatins 9. Hw wuld yu describe yur current capacity / need with respect t facilities management? 1: We are struggling and culd use mre r mre apprpriate staffing / expertise 2 3: Our current staffing is meeting ur needs 4 5: We have excess capacity / expertise and culd pssibly share this with ne r mre ther rganizatins Organizatinal Influence and Access 10. Where des yur rganizatin generally fall n the cntinuum shwn belw? Enter a number, 10 (strng) t 1 (weak). The descriptins may nt fit yur rganizatin exactly; select the number that mst clsely represents yur situatin Strng Weak Our access t influential rganizatins, plicy makers, the media, and cmmunity leaders is strng; we are ften asked fr ur input when there s a critical issue r debate that invlves the wrk f ur rganizatin. We have gd access t thse wh are able t help us further ur wrk and missin, and are smetimes asked fr input n matters invlving the wrk f ur rganizatin. We have sme access t thse wh are able t help us further ur wrk and missin, thugh we are nly ccasinally asked fr input n matters invlving the wrk f ur rganizatin. We have little access t thse wh are able t help us further ur wrk and missin, and are rarely, if ever, asked fr input n matters invlving the wrk f ur rganizatin. We have n access t influential rganizatins, plicy makers, the media, r cmmunity leaders; we are never asked fr input n critical issues invlving the wrk f ur rganizatin. Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 5 f 9
6 Experience with Cllabratin / Partnerships 11. Hw experienced is yur rganizatin with rganizatinal partnerships (e.g. shared administrative functins, jint prgramming, merger)? Very experienced Have sme experience and cmfrtable with ptential Limited experience with this, but interested in explring N experience, but pen t ptential N experience, and this is very threatening t sme f ur peple If yu answered Very experienced r Have sme experience and cmfrtable with ptential abve, please answer Questin 12. If yu did nt, please skip Questin 12 and mve n t the next sectin. 12. Hw wuld yu characterize that past experience? Very psitive Smewhat psitive Bth psitive and negative aspects Smewhat negative Very negative Cncerns and Challenges Nnprfits entering int partnerships naturally have cncerns, and it nrmal t face radblcks and challenges thrughut the prcess. 13. What are yur primary cncerns abut a ptential partnership? Check all that apply. Lss f identity/brand Lss f autnmy Jb lss Cmpatibility f rganizatinal cultures Lack f trust between ur ptential partners and urselves Lessening r lss f cnnectin with the lcal cmmunity. Ability t manage change Messaging/cmmunicatin during and after the explratin prcess The financial cst (fr explring and/r implementing a partnership) The pprtunity cst (i.e., cncern that the prcess might take t much time away frm current activities and/r preclude ther pprtunities) Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 6 f 9
7 Bard Respnse 14. Hw is yur bard likely t feel abut entering int partnership discussins? Very cmfrtable with the idea wuld embrace the ptential Smewhat cmfrtable with the idea wuld enter int the discussin Nt sure the reactin will likely be mixed The bard will be generally negative t the prspect Staff Respnse 15. Hw is yur staff likely t feel abut entering int partnership discussins? Very cmfrtable with the idea wuld embrace the ptential Smewhat cmfrtable with the idea wuld enter int the discussin Nt sure sme will likely embrace the cncept while thers may have significant cncerns There is r is likely t be significant fear and/r cncern amng staff Organizatinal Culture: Cmmunicatin 16. What is the culture f cmmunicatin within yur rganizatin? We are extremely pen and transparent in ur internal cmmunicatins. Senir leadership always makes sure that everyne knws what we are thinking and ding at all times. We are very pen in ur cmmunicatins, thugh depending n the situatin sme cnversatins happen at the management team and/r Bard level prir t inclusin f all staff. Senir leadership is selective in the amunt and type f infrmatin shared with staff. We are very clsed and prtective f infrmatin in ur cmmunicatins. Organizatinal Culture: Decisin-making 17. What is the culture f decisin-making within yur rganizatin? We are a very cnsensus driven rganizatin. We d nt make any significant decisins withut getting full input frm and reaching cnsensus with staff and bard. We tend t be cnsensus-driven; we try and invlve as many vices as pssible, in particular thse wh are affected by the decisin. We generally make decisins at the management team level, seeking input when needed. Decisin making is handled almst exclusively at the senir leadership level. Ptential Partners 18. D yu have a ptential partner in mind? We have a ptential partner identified and have initiated discussins We have a ptential partner identified but have nt apprached We have identified candidates, but have nt assessed apprpriateness We have nt identified any ptential partners Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 7 f 9
8 If yu answered We have a ptential partner identified and have initiated discussins r We have a ptential partner identified but have nt apprached abve, please answer Questins If yu did nt, please skip Questins and mve n t the next sectin. 19. Hw wuld yu characterize the pprtunity fr partnership with that rganizatin? Partnering with them will allw us t survive They are a strnger rganizatin; while this partnership culd and wuld benefit bth f us, it culd be perceived as being f greater benefit t us than t them This partnership will benefit bth f us in equal (r nearly equal) measure We are a strnger rganizatin; while this partnership culd and wuld benefit bth f us, it culd be perceived as being f greater benefit t them than t us We are a much strnger rganizatin and this partnership will save them frm ptentially ging ut f business 20. Hw wuld yu characterize the prgrammatic fit between yur rganizatin and yur ptential partner? We have very different prgrams; each rganizatin brings new prgram emphasis t a partnership We have sme similar/verlapping and sme different prgrams in different gegraphic areas We have sme similar/verlapping and sme different prgrams in the same gegraphic areas We have very similar/verlapping prgrams in different gegraphic areas We have very similar/verlapping prgrams in the same gegraphic area 21. Hw wuld yu characterize yur past experiences wrking with the rganizatin yu are cnsidering as a ptential partner? Very psitive we wuld welcme the pprtunity t wrk with this rganizatin again Smewhat psitive fr the mst part, we have wrked well tgether Neutral we have had bth gd and nt-s-gd experiences with this rganizatin Smewhat negative there were many challenges, but it wasn t all bad Very negative we are interested in explring ptential fr the future, but have serius cncerns we wuld need t address first 22. Hw wuld yu characterize the level f trust that exists between yur rganizatin and the rganizatin yu are cnsidering as a ptential partner? Very psitive there is a very high level f trust between ur rganizatins Smewhat psitive fr the mst part, we have a trusting relatinship Smewhat negative there are sme issues f cncern regarding trust Very negative we have sme significant cncerns regarding the level f trust between ur rganizatins Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 8 f 9
9 Cmmunity Supprt 23. Hw cmmn are successful rganizatinal partnerships in yur cmmunity? It is a cmmn strategy that many rganizatins in my cmmunity have used successfully It is a strategy that has been implemented with uneven results, but is generally seen as a gd ptin Partnerships have nt been very successful in my cmmunity Partnerships are very rare 24. What level f financial supprt exists fr partnerships in yur cmmunity? There is a lng histry f rbust financial supprt fr partnerships There are sme shrt-term financial incentives being ffered t rganizatins that shw an interest in partnerships Funders encurage partnerships, but rarely prvide financial supprt t frm partnerships Clsing Questin 25. In which nnprfit subsectr(s) des yur rganizatin wrk? Advcacy Animal Prtectin and Welfare Arts and Culture Civil Rights and Scial Justice Cmmunity Develpment Educatin Envirnment Heath Husing Philanthrpy Human Services Mental Health Vlunteerism Public Affairs Religin Technlgy Prfessinal Services Other Preparing fr Strategic Restructuring Online Assessment Tl: Questins Page 9 f 9
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