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Using Strategic Alliances To Open Doors June172010

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Outline on strategic alliances @Simmons College on June17

Outline on strategic alliances @Simmons College on June17

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  • 1. Using Strategic Alliances to Open New Doors June 17, 2010 Simmons College Linda K. Paresky Conference Center
  • 2. Agenda • Introduction • Opening Exercise • Current Environment and Strategic Alliance Definition • Strategic Alliance Framework and Examples • Planning your Strategic Alliance • Q&A
  • 3. 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.
  • 4. 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
  • 5. Speakers Introduction Jackie Cefola, Program Manager jcefola@tsne.org NonProfit Center Third Sector New England Anita Lauricella, Principal anitalauricella@comcast.net Lauricella and Associates Roger Michelson, VP and COO Roger@bnmc.net BNMC Deidre Schmidt, Exec Director dschmidt@affordablehousinginstitute.org Affordable Housing Institute
  • 6. 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
  • 7. Current Environment • 1. Accountability and impact • 2. Scarce resources • 3. Complexity
  • 8. 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.
  • 9. Strategic Alliance Definition 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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)
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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?
  • 19. Questions & Answers http://cfnps.org/BosLS6.aspx
  • 20. 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_Joint Programming_c2009.pdf • " Five Myths About Nonprofit Partnerships," www.lapiana.org/downloads/LaPianaConsulting_5MythsofNonprofitPartnershi ps_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/Res earchAndPublications/Reports/TenPrinciples/TP_Partnerships.ashx