3 Often Overlooked Predictors of Nonprofit Collaboration Success
When evaluating the potential of a nonprofit partnership or collaboration, the more obvious areas of focus tend to be those items related to the due diligence process. Nonprofit leadership and boards dive deeply into examining and comparing board structures, program portfolios, assets, and organization charts with the goal of finding logical and ideal potential partners. While this is a critical part of the process, it does not address the emotional and relational aspects of a transaction.
Quite often, the intrinsic value of nonprofit partnerships and deal success can come down to the intangibles related to human behavior and character, those factors that go beyond legal contracts and deal structures. While these factors may not be explicitly stated, they are reflected in an organization’s mission, values, and leadership style and when exploring the potential synergy of collaborations, they are the undertone of meetings and discussions about building partnerships and planning for the future.
After working with a number of leaders transacting mergers, affiliations, and strategic partnerships, our nonprofit consultants have identified 3 common factors that, when present, can often indicate whether a deal will ultimately be successful as well as the likelihood of a cohesive long-term relationship.
The 3 most most often overlooked factors that indicate the potential of success are: Likemindedness of leadership, aligned values, and commitment over ego.
Likemindedness of Leadership: The starting point of many relationships between nonprofits is the ability to see how the vision and strategy of those organizations align. Leaders with a shared understanding of the nonprofit marketplace, aligned strategic direction, and common vision of the path to take to achieve that strategy, have a foundation of likemindedness. This often evolves into a trusting relationship when leaders find they share similarities in personality, humor, candor, and their approach to collaborating with others.
Aligned Values: Culture is an over-used word and can be a catch all, but values and beliefs are far more specific. An nonprofit’s values are often reflected in their decision-making, how they treat those they serve, the way they develop and support staff, how they run board meetings, and even the language they use. Does the organization as a whole conduct itself in accordance with the values they have chosen and outwardly stated?
If the values of two nonprofit leaders and their organizations are aligned, the comfort level of forming and finalizing a partnership or collaboration increases. Even more importantly, aligned values eases the post-closing integration process.
Commitment Over Ego: The commitment to a strategic vision is a powerful motivator, but sometimes leaders are faced with decisions that involve a level of self-sacrifice to achieve the strategic vision. The leaders that can put vision above ego are more likely to achieve higher levels of success for their organization.
A leader’s level of commitment to the vision or ideals of the strategy can reveal itself during discussions with potential partners or it can be perceived based on a leader’s reputation in the market. This can either result in being a catalyst for partnership opportunities or create barriers depending on the nature of the impression.