organizational effectiveness initiative strategic restructuring 101: partnerships, collaboration,...
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Organizational Effectiveness Initiative
Strategic Restructuring 101:Partnerships, Collaboration, and Mergers
Presenting:Joann Ricci
VP for Organizational Effectiveness
Featuring:
Jo DeBolt Partner
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Logistics
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Today’s Speakers:
Joann Ricci, VP of Organizational Effectiveness Greater New Orleans FoundationContact: [email protected] or www.gnof.orgJoann develops, designs, and leads programs and learning activities to help build and strengthen the capacity and effectiveness of the area’s nonprofits to more successfully meet their missions. Joann is also responsible for increasing the effectiveness of the Foundation’s programmatic and grantmaking work through evaluation, implementation of promising practices, networking, and strategy development.
Jo DeBolt, Partner of La Piana ConsultingContact: [email protected] or www.lapiana.orgJo brings nearly 30 years of experience as a nonprofit executive and consultant to the firm. As a consultant and nonprofit leader, much of Jo’s work involved starting and growing organizations including designing and developing systems, building boards and staff, implementing new programs, translating vision into action, and ensuring that mechanisms were in place to measure the impact of these new ventures.
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Agenda
What is Strategic Restructuring? Considering Restructuring National Landscape Getting Started Case Studies
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What is Strategic Restructuring?
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The Partnership Matrix
Greater Autonomy Greater Integration
Pro
gra
mA
dm
inis
tra
tio
n Administrative Consolidation
Joint Programming
Single focus or program Multi-focus or program Integrated system
Contracting for services Exchanging services Sharing services
Information sharing Program coordination Joint planning
Collaboration
Management ServicesOrganization
Parent/SubsidiaryCorporation
Corporate Merger/Acquisition
Joint VentureCorporation
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Poll
Have you seen examples of strategic partnerships in your community?
47% of listeners said YES
16% of listeners said NO
Considering Restructuring
Mission comes first.
Finances follow.
Economic Pressure
Leadership Transition
Stronger Place in Your Field
Poll
Are you experiencing…
Economic Pressure – 69% said Yes
Leadership Transition – 43% said Yes
Competitive Challenges – 52% said Yes
Growth Opportunities – 80% said Yes
National Landscape
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Strategic Partnership by Type
35%
25%
7%
8%
23%
2%
Joint Programming
Merger
Joint Programming and Administrative Consolidation
Administrative Consolidation
Not specified
Other (coalitions, confederations, etc.)
Strategic Partnerships by Focus Area
Source: Lodestar Foundation / Foundation Center19
Human Services
Education
Mental Health
Health
Other
Community Development
Technology
Public Affairs
Volunteerism
Philanthropy
Religion
Housing
Arts and Culture
Environment
Civil Rights
Animal Protection and Welfare
Why Do Nonprofits Consider Collaboration?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
86% 85% 83% 82% 82%
Factors that best describe why this collaboration was formed *
n = 644 *2010 Collaboration Prize database, the Lodestar Foundation
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Getting Started
The Decision Tree
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We seek the following ends:
We hope to achieve specific, significant, but limited programmatic ends. We wish to remain an independent
organization and to achieve these ends by working within our existing organization
Consider joint programming
Or if…
We hope to reduce administrative costs and increase administrative efficiency. We wish to remain an
independent organization and to achieve these ends by working within our existing organization
Consider administrative consolidation
If we seek even greater
integration…
We wish to increase our administrative efficiency on a large scale by creating a separate business that can
provide services to multiple organizations.
Consider creating a management service
organization
Or if…We wish to achieve specific and significant
programmatic ends by creating a separate entity to fulfill a programmatic purpose.
Consider creating a joint venture corporation
If we seek even greater
integration...
We hope to achieve synergistic gains in our ability to achieve our mission by integrating our organizations
and our corporate structures.
Consider a parent/subsidiary structure
or a merger
The Strategic Restructuring ProcessAssessment
ResolutionAssessment AgreementNegotiation• Legal Resolution
• IntegrationImplementation
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Look Inward
Find a Partner
Identifying Organizational Matches Organizations with similarities and differences in…
Mission and vision Constituents served Types of programs Funding sources Strengths and weaknesses
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My Organization
Organization B
Organization A
Prepare for Negotiations or Design
Next Steps
The Strategic Restructuring ProcessNegotiation
ResolutionAssessment AgreementNegotiation• Legal Resolution
• IntegrationImplementation
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Corporation B
Board of Directors
Due Diligence
Determine potential problem
Disclose informationAnalyze
Negotiations
Committee
Integration
Identify Issues
Negotiate financial and legal issues
Record agreementsCommunicate progress to constituents
Decision
Process Corporation B
Board of Directors
Corporation A
Board of Directors
Corporation A
Board of Directors
Joint Legal
Counsel
The Negotiations Process
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Financial Impact and Analysis
Financial Comparison Human Resource Comparison Budget Development
Projection for combined budget Cost/savings analysis
Donor Comparison
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Understanding Trust
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Reliability
Openness
Integrity
CompetenceBenevolence
Questions
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Case Studies
Chattanooga Museums
Case Study: Administrative Consolidation
http://lapiana.org/strategic-restructuring/research-and-workbooks
Ready Set Parent!
Case Study: Joint Programming
http://lapiana.org/strategic-restructuring/research-and-workbooks
Crittenton Women’s Union
Case Study: Merger
http://lapiana.org/strategic-restructuring/research-and-workbooks
Questions
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More information and resources at
www.gnof.org or www.lapiana.orgEmail Jo at [email protected] Joann at [email protected]
Join the conversation!
Thank You
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Next Steps
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