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					Coalitions & Strategic Alliances
                       for CSOs
                                            Rob Fuller
                 Director of Entrepreneurial Programs
                                     Beyster Institute
Coalitions & Strategic Alliances

 • Why use coalitions or alliances?
 • Factors for creating successful
   partnerships
 • How to make collaboration work




                  MEET U.S.           2
What is a Coalition?


    A coalition is a group of people who
    work together to support a common
              mission or vision.




                  MEET U.S.                3
What is a Strategic Alliance?

  A strategic alliance is an agreement to
     utilize the strengths of two or more
  organizations to provide some benefit to
    clients or the community by working
                    together.




                  MEET U.S.                  4
Why use a Coalition or Alliance?
 • Increases public support and helps build
   trust
 • Gain broader acceptance of new idea or
   change of old idea
 • Reach out to all segments & groups in
   the community
 • Acquire new resources
 • Accomplish more together than
   separately
                   MEET U.S.                  5
Assess Your CSO’s Potential
• Why are we looking at an alliance now?
• What do we want to achieve from the
  collaboration?
• Is a coalition or alliance the best way to
  achieve our goals?
• What resources are we willing to
  commit?
• How much control are we willing to
  cede?
                   MEET U.S.                   6
 Basic Approach to Collaboration
• Determine mutual ground rules
• Assess strategic potential of the
  collaboration
• Define success criteria
• Establish a plan
  – resources, expectations, relationships
• Structure an agreement
• Measure performance

                      MEET U.S.              7
Collaboration Continuum
                                                   Collaboratio
                                                        n
                                                     Frontier




    Stage 1                          Stage 2        Stage 3
 Philanthropic                    Transactional   Integrative



James Austin
Harvard Business School
Initiative on Social Enterprise      MEET U.S.                    8
Stage 1: Philanthropic Collaboration
 • Traditional roles
   – “benevolent donor” & “grateful recipient”
 • CSO receives funding, goods, or
   services
 • Donor enhances its reputation as a
   “community supporter”




                       MEET U.S.                 9
Stage 2: Transactional Collaboration
 • Begin to regard each other as “partners”
 • Resource exchanges (“transactions”)
   – Cause-related marketing
   – Event sponsorships
   – Licensing
   – Paid service arrangements
 • More than traditional charitable
   contribution

                    MEET U.S.                 10
Stage 3: Integrative Collaboration
 • Resources mobilized and meshed
 • New unique services, activities,
   resources created
 • “Collaboration Frontier”




                  MEET U.S.           11
A Written Agreement
• Definition of Scope
    – Activities, geographic, technical
• Objectives
    – Specific Projects, milestones
•   Roles and Responsibilities
•   Channels of communication
•   Sharing or bearing of costs
•   Sharing revenues
•   Ownership of Intellectual Property
•   Joint marketing
•   Resolving conflicts
•   Termination
                          MEET U.S.       12
Keys to Managing Collaboration
• Identify all the stakeholders
• Clearly communicate goals to
  stakeholders
• Evaluate performance against
  expectations
   – Define metrics
   – Evaluate/adapt metrics as needed
• View the alliance portfolio holistically
• Allocate adequate management resources
                  MEET U.S.                  13
Success Factors
•   Environment
•   Membership
•   Process & structure
•   Communication
•   Purpose
•   Resources

    Mattessich & Monsey, 1993
    Collaboration: What Makes it Work

                                MEET U.S.   14
 Problems in Coalitions/Alliances

• Partner may act opportunistically
• Partner may misrepresent competencies
  brought to the partnership
• Partner fails to make committed
  resources and capabilities available to
  other partner
• Partner may make investments that are
  specific to the alliance while the other
  partner does not
                    MEET U.S.                15
Examples in the U.S.
• City Year and Timberline
• CARE and Starbucks
• The Nature Conservancy and Georgia-
  Pacific
• Bidwell Training Center and Bayer
• Jumpstart (Boston) and American Eagle
  Outfitters
 James Austin, 2000
 The Collaboration Challenge: How Nonprofits and
 Businesses Succeed through Strategic Alliances
 Peter F. Drucker Foundation for Nonprofit Management


                                              MEET U.S.   16

				
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