Outline on strategic alliances @Simmons College on June17

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

9. 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.

10. 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

11. 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

12. 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

13. 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

14. 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)

15. 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

16. 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

17. 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

18. 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

19. 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?

20. Questions & Answers
http://cfnps.org/BosLS6.aspx

21. 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