Non-profit Merger - Leket Israel

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A fascinating non-profit merger, supported by Beyond Business, consultants to businesses and non-profits.

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Non-profit Merger - Leket Israel

  1. 1. Better, together B h A Merger of Value and Values A Merger of Value and Values A unique example of  a non‐profit merger  fit in Israel
  2. 2. The background g 1.7 million people live in poverty in Israel (over 700,000 are children). Most of these are suffering from food insecurity.  Current levels of support  for the food insecure  reach only a small proportion of those affected. Over 350 non profit organizations provide food to the needy in  Over 350 non‐profit organizations provide food to the needy in Israel. These organizations operate independently with no overall  coordination and compete for resources and available food. Most  organizations purchase food to supply the needy at retail prices. i ti h f dt l th d t t il i It was apparent that leadership was necessary , to create more efficient  and more effective support  for the food insecure. This could be done by   merging resources and creating a  d i b ll i i new, dynamic umbrella organization.  
  3. 3. The merger g 1.1.2010 Leading and largest source of food and development support for non‐profits in p pp p Israel, dedicated to alleviating food y insecurity. Food rescue Central food  and gleaning of  d l i f purchasing  and  h i d agricultural fields capacity  building
  4. 4. Table to Table : the food rescue partner Established in 2003 by Joseph Gitler who served  as Chairman and CEO Volume of food  Primary operations:  • Food rescue from Catering Services and other  sourced: cooked food suppliers. over 12 million lbs  over 12 million lbs • Gleaning of fruit and vegetables from  agricultural fields. in 2009, distributed  • Collection from Food Companies of food surplus  to over 170 non‐ or unsalables.  profits of all types all  Resources:   over Israel supplying  • 60 salaried staff approximately 600 regular 60 salaried staff, approximately 600 regular  volunteers, and over 50,000 occasional  the food insecure  h f di volunteers per year. population.  • Complete logistics infrastructure including Complete logistics infrastructure including  warehousing,  trucks and equipment.
  5. 5. Leket ‐ Israel Foodbank : The food purchase partner p p Established in 2007 at the initiative of  the Forum  to Address Food Insecurity in Israel y Volume of food  Primary operations:  purchased: • Central purchasing operation for food non‐profits over  4 million lbs  • N t iti Nutritional training and awareness programs for  lt i i d f non‐profit agencies in 2009 at a value  • Food safety guidance, audits and support for non‐ over $3 million of  profit agencies profit agencies • Capacity building for non‐profits (supplying  (mainly) dry foods  refrigerators, storage equipment etc) on behalf of 77 non‐ Resources: profits of all types profits of all types  • 3 salaried staff, with no regular volunteers, using   all over Israel.  outsourced logistics and supporting functions.
  6. 6. Why the merger made sense y g • Shared vision by the leadership of both merger partners. y p g p • Common overall objectives and values by both merger  partners.  • Complementary activities to alleviate food insecurity. l i ii ll i f di i • Ability to share infrastructure and resources, delivering  logistics and overheads economies of scale and savings. logistics and overheads economies of scale and savings • Greater presence and leverage with food suppliers and food  donors. • Stronger appeal to donors due to higher levels of efficiency. • Stronger voice for advocacy.
  7. 7. Full service integrated operation g p • Improved  • Logistics  environmental  infrastructure impact Agricultural  Purchasing Gleaningg Meals  Packaged  Rescue foods  Collection • Capacity Capacity  Building,  • Advocacy Nutrition and  Safety support
  8. 8. Preparing the merger p g g • Due diligence and strategic review of both organizations : • Mission and Values, Strategy and Goals • Structure and Processes Structure and Processes • Stakeholders • SWOT • Interviews with Board members and all key people in both organizations Interviews with Board members and all key people in both organizations • Agreement of goals, structure and people • Board involvement in creating new Vision and Mission statements Board involvement in creating new Vision and Mission statements • Selecting the right people  • Internal meetings with all departments to review all core activities • Development of Scorecard of key metrics and detailed workplans Development of Scorecard of key metrics and detailed workplans • Agreement of merger process and timetable NB: Due diligence and strategic review prepared by external consultant, who supported the  NB: Due diligence and strategic review prepared by external consultant, who supported the merger process. 
  9. 9. First stage merger plan g g p
  10. 10. Initial Learnings g • Ensure alignment and clarity of leadership of both organizations • Select people carefully – maintain continuity as far as possible but be aware of up‐ Select people carefully  maintain continuity as far as possible but be aware of up skilling requirements. • Listen to EVERYONE – make balanced decisions after hearing all views. g • Do what’s right – don’t let ego and personal interests get in the way.  • Align merged team around common vision and common goals. • Manage the process – someone has to have a finger on the pulse • Develop stretch goals, clear metrics and a reporting process.  • Ensure all communication materials are prepared early. • Excite external stakeholders with new possibilities. • Keep listening. Keep moving forward.
  11. 11. It’s all about people ! p p • Make key decisions quickly and deliberately:  • Involve many in discussions, but ensure decisions are made quickly and efficiently with a  small “cabinet” of active Board Members and key staff.   ll “ b ” f d b dk ff • Align the people: • It is important to define a new marketing language  and speak with “one voice”. • This applies to all members of merged organizations, even if one was the dominant merger  partner. • People need to be coached and mentored to ensure alignment with the new message. • Communicate: • Constant, open communication to all internal and external stakeholders – staff, donors,  food non‐profits, farmers, food suppliers etc. • Involve volunteers:   • Volunteers are important and must be involved in the planning process. • Volunteers are harder to involve as they are not dependent on the organization for their  salary as are staff employees, and may be less available. l ff l d b l l bl • It is important to retain the spirit and drive of all the people
  12. 12. Heading for a better future, together • Better reach:  Increase meals provided  via Leket Israel to the food insecure from 10 million to  Increase meals provided via Leket Israel to the food insecure from 10 million to over 30  million meals per year in the next 5 years. • Better leadership: Better leadership:  Use food support as a basis to leverage other social benefits including educational  activities, community empowerment programs and more. • Better influence:  Stronger advocacy regarding government policy on food insecurity and poverty. 
  13. 13. Thank you! y www.leket.org info@leket.org

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