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Building Strategic Alliances

Building Strategic Alliances. South Dakota Nonprofit Enhancement Project July, 2009. Introduction. Alliances can be a powerful force for change A well-rehearsed set of voices can make powerful change Money and power change people Working together is not without stress and challenges

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Building Strategic Alliances

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  1. Building Strategic Alliances South Dakota Nonprofit Enhancement Project July, 2009

  2. Introduction • Alliances can be a powerful force for change • A well-rehearsed set of voices can make powerful change • Money and power change people • Working together is not without stress and challenges • Be careful what you wish for

  3. The Types of Alliances • Network • Cooperation • Coordination (or Partnership) • Coalition • Collaboration • Merger

  4. Purpose Dialog Clearinghouse Base of Support Structure Non-hierarchical Flexible linkage Roles loosely defined Process Informal leaders Minimal decisions Little conflict Informal communication Network

  5. Purpose Needs/resources coordination Low duplication Tasks acknowledged Structure Few people serve as the communication hub Roles are defined Links advisory Group leverages dollars Process Issue-focused leaders Group decision-making Communication is frequent and clear Cooperative

  6. Purpose Dollars are shared Merged resource base To build something new Structure Core people serve as decision-makers Roles are defined Links are formalized New dollars are developed Process Issue-focused leaders Group decision-making Communication is frequent and clear Coordination (Partnership)

  7. Purpose Ideas are shared Resources are realigned Three-year commitment Structure Shared Decisions Roles/time defined Written linkages New resources and a merged budget Process Shared leadership Communication is common and prioritized Coalition

  8. Purpose Shared vision Interdependent system Structure Consensus of all in decision-making Roles/time/evaluation formalized Written formal links Process Shared leadership High trust level Ideas/decisions shared High level of communication Collaboration

  9. Purpose Shared mission, vision, values Create a single system Attain critical mass Permanent alignment Structure Formal documents Formulation of new corporate structure Single decision-making entity Process Single leadership Common mission Merged dollars Merger

  10. Why Align? • “Austerity measures” – Eliminating duplication, maximizing assets • “Savings oriented” – Improving economies of scale and scope • “Synergies” – Bringing together common complementary capabilities • “Revenue enhancement” – Ability to leverage $ to implement common mission elements • “Mission impact” – Ability to demonstrate positive impact and mission fulfillment

  11. The Single Most Important Element for Successful Alignment • “The common good” -- Each participant’s mission, vision, and strategic goals must be fulfilled.

  12. Questions that drive alignment decision-making. • Why should we collaborate? -- Clearly articulate the function and value of the alignment to EACH organization’s strategic goals. • What type of alignment should we undertake? -- Clearly defining the implications of the different modes of alignment and determining the optimal level for the specific circumstance. • With whom should we align? -- Driving alignment decisions based on mission, values, needs and competencies. • When should we align? Addressing the crucial factors of time for EACH aligning entity. • How should we align? -- Articulating the management, measures of success, and all related considerations of operation.

  13. The Elements of Alignment • Understanding the level and type of alignment desired • Making connections • Ensuring strategic fit • Generating value • Managing the relationship

  14. Considerations • Don’t assume a common mission/purpose – just because you share a race, community, common client doesn’t mean you are in sync • Build the relationship first – like each other before entering into alignment • Set boundaries when you are happy -- Communication, problem-solving, rules of engagement, conflict management, and measures of success go better with rules • Build in time to assess the success of the alliance structure – Take the time go do this work while assessing success of common goals

  15. Thank You! 818 S. Hawthorne Avenue Sioux Falls, South Dakota 57104-4537 (605) 336-0244 or (888) 4-SUMPTION www.sumptionandwyland.com

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