Playing Well With Others: Collaborations, Partnerships and Mergers (Oh My!) Judy

Transcription

1 Playing Well With Others: Collaborations, Partnerships and Mergers (Oh My!) Judy

2 Session Objectives Prepare yourselves for the next frontier Understand limitations and possibilities Share proven success factors Learn from exercises and tools

3 Table Introductions First, everyone at the table share: Name Your mission Next, make up a mission from some combination of the missions shared

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5 The Realignment Spectrum Collaboration Efforts by two or more organizations to create a durable, pervasive relationship that permits them to achieve mutually beneficial results.

6 Collaboration Use for continuity and consistency of: Information sharing Program coordination Joint planning Most common form of realignment.

7 The Realignment Spectrum Administrative Consolidation Sharing, exchanging, or contracting of administrative functions to increase the administrative efficiency of one or more of the organizations.

8 Administrative Consolidation Use for: Continuity Expense savings Professionalization of processes Colocation

9 The Realignment Spectrum Joint Programming The joint launching and managing of one or more programs to further the mission of the participating organizations.

10 Joint Programming Use to achieve complementarity, portable programming, cross sector initiatives.

11 The Realignment Spectrum Program Transfer Occurs when one organization spins off or transfers administration of one of its programs to another organization.

12 Program Transfer Use to address mission creep, post demonstration project, for a lifeboat, or when host organization is going out of business.

13 The Realignment Spectrum Subsidiary Preserves the visibility and identity of the organizations while combining some of the partners administrative functions and programmatic services.

14 Parent-Subsidiary Use when identity is paramount or with culturally specific organizations. Use when there are organizational assets that can t be disassociated from the organization.

15 The Realignment Spectrum Joint Venture Creation of a new organization to further a specific programmatic or administrative aim of two or more organizations.

16 Joint Venture Use to share governance, leverage reduced costs, eliminate duplication, achieve economies of scale.

17 The Realignment Spectrum Merger / Acquisition Integration of all programmatic and administrative functions of multiple organizations.

18 Merger / Acquisition Use to achieve administrative efficiencies, preserve services or achieve program synergies, increase geographic reach, grow or go to scale.

19 Exercise Find a partner or two Determine what you could do together Identify the best model Share what you experienced

20 Who s willing to dive in? Strategy Desire a bigger impact Complement a strong program Add a geography Increase efficiencies Need more sophisticated tools Survival

21 What s in the Way? Time Fear Complexity No guarantees

22 What s Needed? Focus on Mission Advancement Curious Leaders Asset Orientation Experimentation Perseverance and Courage Support for Change

23 Experiment: Flip Flap Fun

24 Field Experiment Brains Belly Legs

25 Success Factors in Nonprofit Mergers 2012 study of 41 direct service organization mergers in Minnesota from In partnership with The Wilder Foundation Began with literature review and expert interviews 3 8 interviews per merger; 1 to 2 hours in length Extensive review of 990s pre and post merger

26 Indicators of Merger Success Improved image, reputation or support Improved, expanded, or preserved services Increased quality of operations Increased efficiency of operations Improved financial stability Development of a positive organizational culture

27 To Preserve or Grow Services Best predictors include: Strong working relationships among executives Opportunities for organizations to examine financial and legal information of partners

28 To Preserve or Grow Services Best predictors include: Development of cost sharing agreements for merger expenses Support and inclusion of line staff

29 To Preserve or Grow Services Best predictors include: Opportunities for funders to participate and give input into merger plans

30 To Strengthen Financial Stability Best predictors include: Strong working relationships among executives Collaboration / partnerships between organizations prior to merger

31 To Strengthen Financial Stability Best predictors include: Inclusion of line staff in planning and implementation Opportunities for funders to participate and give input into merger plans

32 Sample Tool 1. What would it take to get our field organized for impact? 2. What assets do we and our organization bring to realignment? 3. Who are our likely partners? Supporters? 4. What could we do together that we can t do alone? 5. Who are our champions for change?

33 Sample Tool

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