Knowledge
Strategic Alliances
Strategic alliances between nonprofit organisations are surprisingly prevalent. Surveys in the UK and the US suggest that between 20 and 25% of organisations work collaboratively with other nonprofit organisations. In the UK 5% of organisations exist as a result of a merger in the last 5 years, and 13% have considered a merger in the last 10 years (Charity Commission, 2003).
The keys to creating successful alliances are to:
- establish a clear and distinctive mission
- clarify responsibility for leadership of the alliance
- create a strategy for the alliance (which is distinct from strategies of participating organisations)
- be very realistic about resources (and avoid the temptation to underestimate managerial time requirements)
- have open and trusting communications between all the participants
- be willing to admit failures and remember to celebrate achievements.
More on Strategic Alliances
Types of strategic alliances.
Successful Alliance Features.
Steps to a successful merger.
Books on Strategic Alliances
Forging Nonprofit Alliances
Jane Arsenault, Jossey Bass, 1998
ISBN 0-7879-1003-1
Although it was written a few years ago, this ground breaking US book clearly
describes the many different types of strategic alliances.
It also describes ways of approaching the establishment of a strategic alliance
from preliminary discussions to implementation.
The Collaboration Challenge
James Austin, Jossey Bass, 2000
ISBN 0-7879-5220-6
This book by a Harvard Professor describes how to create successful strategic
alliances between nonprofit organisations and private sector companies.
James Austin describes how to establish and manage such strategic alliances
and to make them mutually beneficial. He demonstrates how traditional
philanthropic relationships can be transformed into powerful strategic
alliances and illustrates the theory with many case studies.
Collaborative Working and Mergers
The Charity Commision June 2006
The Commission sets out valuable advice including guidance on regulatory issues to consider.
Download from The Charity Commission...
Reports on Strategic Alliances
Collaborative Working and Mergers
The Charity Commission, 2003 Regulatory Study 4
This Regulatory Study reports on a survey of collaborative working and
mergers and uses their own data about charities that run into problems
to identify a wealth of good practice guidance.
The first part identifies the extent of collaborative working, why
collaborations fail and how to approach collaborative working. The second
part addresses similar questions for mergers.
Download from the Charity Commission...
Mergers and Collaborations
Charities Survey, Charity Finance, June 2004
This 14 page survey reports on the extent of collaborations and mergers in UK
charities and the benefits that accrue.
It looks at where people seek advice and concludes with some key messages for
trustees.
Download from Charity Finance...
Managing Mergers – a guide
ACEVO, 2003
This report, by various authors, covers what Chief Executives need to know
and legal aspects of mergers. It includes five case studies.
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Chapters on Strategic Alliances
Managing at the Leading Edge
Mike Hudson, Directory of Social Change, 2003
Chapter 4 Strategic Alliances
This chapter reports on experience from the USA on:
- Establishing strategic alliances
- Choosing a type of alliance to fit the circumstances
- Creating alliances with the corporate sector
- Building alliances on trustworthy relationships
- Merging organisations to build strategic capacity.
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Last updated: February 2009