Using Strategic Alliances to Open New Doors June 17, 2010 Simmons College Linda K. Paresky Conference Center
Sep 03, 2014
Using Strategic Alliances to Open New Doors
June 17, 2010
Simmons College
Linda K. Paresky Conference Center
Agenda
• Introduction• Opening Exercise• Current Environment and Strategic Alliance
Definition• Strategic Alliance Framework and Examples• Planning your Strategic Alliance• Q & A
Introduction• Strategic alliances and partnerships provide many
benefits to nonprofits. By combining forces and eliminating duplication of mission and services, nonprofit organizations can often increase their social impact. Funders often also look to see if organizations are teaming up instead of competing with each other. However, many nonprofit organizations find themselves uncertain not only of exactly what a partnership will entail for their organization, but how to go about building the partnership in a way that best serves their needs.
Objectives• How to know if a Strategic Alliance will benefit your
organization• The different kinds of alliances and partnerships and
how nonprofits can benefit from them• A step by step guide to setting up a partnership • Identifying suitable partners • Common mistakes to avoid with your strategic partner • How to evaluate whether your alliance is producing a
return on investment
Speakers IntroductionJackie Cefola, Program Manager [email protected]
NonProfit Center Third Sector New England
Anita Lauricella, Principal [email protected]
Lauricella and Associates
Roger Michelson, VP and COO [email protected]
BNMC
Deidre Schmidt, Exec Director [email protected]
Affordable Housing Institute
Opening Exercise
• Spend 1-2 minutes introducing yourselves to each other at the table – include name, affiliated organization, quick
description of any existing alliances.
• Discuss your interests / questions around the Strategic Alliances topics
Current Environment
• 1. Accountability and impact
• 2. Scarce resources
• 3. Complexity
Strategic Alliance Definition
• Strategic restructuring occurs when two or more independent organizations establish an ongoing relationship to increase the administrative efficiency and/or further the programmatic mission of one or more of the participating organizations through shared, transferred, or combined services, resources, or programs.
1. An Alliance is a strategic restructuring that includes a commitment to continue, for the foreseeable future, shared or transferred decision-making power and some type of formal agreement
– An administrative consolidation– A joint programming
Strategic Alliance Definition
Strategic Alliance Definition
2. An Integration is a strategic restructuring that includes changes to corporate control and/or structure, including the creation and/or dissolution of one or more organizations.
– A management service organization (MSO)– A joint venture corporation – A Parent-Subsidiary – A Merger
Strategic Alliance Framework and Examples
• Shared Space, Staff and Programs
• Outsourcing and Strategic partnering for Information Technology (IT) Functions
• Global Alliances with focus on Housing
• Mergers
Planning your Strategic Alliance
• Before you Initiate an Alliance– It’s all about mission– Who are we?– Clarity of organizational or project mission– What do we want to be, articulate goals– It must be driven by a long term vision and strategy– Not a reactive strategy– It takes time and needs planning– Diverse funding models are possible, if planned from beginning– Example-present a really good example– Self assessment– What is our value proposition
Planning your Strategic Alliance
• Choosing a Partner– Be strategic, familiarity doesn't equal the right fit– Do your research– Ask outsiders and board about fit– Vision overlap, not duplication– For-profits and public sector are often overlooked
possibilities – Right person in organization (enthusiasm + authority)
Planning your Strategic Alliance• Define the Relationship
– Statement of common beliefs– Extent of collaboration– Legal structure, governance – What will each partner will do– What staff is assigned (organized committee?)– How much time and in-kind resources will each bring – Cash resources, Budget – Return on Investment– Timeline/urgency – When you will consult with/ speak for one another– What is public / can be disclosed
Planning your Strategic Alliance• Making it Official
– Written document (not necessarily legal)– Memorandum of understanding, term sheet, letter of intent, cooperation
agreement teaming agreement– Clarity for: you, partner, board, staff, funders, external partners– Confidentiality / Privacy / Exclusivity– Competition– Current business lines– Duration– Cost / Terms of Payment– Employment/staffing– Liability
Planning your Strategic Alliance• Communications for a Healthy Relationship
– A long term relationship, but not necessarily forever – Built-in reassessment timing and discipline – Not monogamous – I love you, but you can’t satisfy all
my needs– I need my own identity, branding– I need space– Feedback loops for communication, from partners and
other stakeholders
Planning your Strategic Alliance• How to Evaluate your Alliance
– Does the strategic alliance enhance your mission?– Does the market support the alliance?– Is the ROI accruing as anticipated?– Are other financial measures being met?
• Cash flow, Equity
– Other non-financial gains?• Relationship-building• Collaborative programs• Higher-quality resources• Stability , Visibility , Community
– Regularly scheduled assessment
Group Exercise• What are the goals for the alliance? Who benefits? How will your
mission be enhanced?• What will be the measures of success?• How will the alliance be funded? What organizational assets will be
used?• Describe the best partner organization(s). What characteristics are
most important for the success of the alliance? Why?• What structure is most appropriate for your alliance?• How will costs and benefits from the alliance be shared among
partner organizations?• How will you communicate with and obtain feedback from other
stakeholders?
Questions & Answers
http://cfnps.org/BosLS6.aspx
Resources• “Merging Wisely" http://www.ssireview.org/articles/entry/merging_wisely/
• "Shared Services: a Guide to Creating Collaborative Solutions for Nonprofits" available for sale with free sample chapter and case studies at www.tides.org
• "Models of Strategic Restructuring Case Study: Ready, Set, Parent! Joint Programming," available for free at www.lapiana.org/downloads/CollaborationCaseStudy_ReadySetParent_JointProgramming_c2009.pdf
• " Five Myths About Nonprofit Partnerships," www.lapiana.org/downloads/LaPianaConsulting_5MythsofNonprofitPartnerships_byJoDeBolt_2009.pdf
• Online Resource Center offered by the NonprofitCenters Network available at http://www.nonprofitcenters.org/resources/resource-center/
• Collaboration and Merger articles, reports and case studies available at http://www.tsne.org/resources/collaboration_merger#articles
• “Ten Principles for Successful Public/Private Partnerships.” http://www.uli.org/ResearchAndPublications/Reports/~/media/Documents/ResearchAndPublications/Reports/TenPrinciples/TP_Partnerships.ashx