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Agenda
- Redesign basics:
- Shared Services, Shared Employees, Collaborations,
Merger
- Minnesota CAA experiences
- Discussion
- Resources
MN Community Action Redesign Explorations August 8, 2014 Agenda - - PowerPoint PPT Presentation
MN Community Action Redesign Explorations August 8, 2014 Agenda - - PowerPoint PPT Presentation
MN Community Action Redesign Explorations August 8, 2014 Agenda Redesign basics: Shared Services, Shared Employees, Collaborations, Merger Minnesota CAA experiences Discussion Resources Next slides courtesy of CAPLAW,
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Next slides courtesy of CAPLAW, www.caplaw.org
Redesign Basics: Why Share Services, Collaborate, or Merge?
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Environmental Factors
- Reduced government funding
- Reduced private funding
- Increased competition
- Growth in number of nonprofits
- Difficult economic landscape
- Increased operational costs
- Increased demand for accountability
- Increased demand for services
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Improve, Expand, or Preserve Services
- Increase organization’s reach or mission
- Enhance program integration
- Expand service area
- Expand client base
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Strengthen Financial Position
- Achieve economies of scale
- Diversify revenue streams
- Expand donor base
- Increase assets
- Save a failing entity (through merging)
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Enhance Organizational Capacity
- Greater staff experience
- Improve internal systems (IT, HR)
- Expand/consolidate space
- Enhance community relationships and
engagement
- Improve image, reputation, marketing,
branding
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Redesign Basics: Key Considerations
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What Do We Hope to Achieve?
- Merger/partnership will lead to something new
that could not exist without the joining of compatible strengths
- Form (choice of partner and structure) will
follow function (what we hope to achieve)
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When to start?
- Before it is necessary (i.e., before there is a
crisis/before programs have been damaged)
- Often leadership transitions can be a good time
to initiate conversations internally and externally (especially re: mergers)
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First steps
- Organizational self‐assessment
- Motivations
- Desired goals
- Critical issues
- Organizational obstacles and red flags
- Financial position
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Preconditions for Success
- Trust (e.g., through familiarity with partner)
- Clear strategic planning and vision for the
merger or partnership compatible with both
- rganizations’ missions
- Merger champion (board member or executive
director) and board leadership
- Experienced executive director
- Board and staff buy‐in (particularly for
mergers)
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Preconditions for Success (cont’d)
- Thorough due diligence
- Attention to organizational culture and
integration issues, internal and external communication
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Some Potential Road Blocks (for Mergers Especially)
- Concern about loss of identity
- Costs and time involved
- Short‐term focus on day‐to‐day operations and
survival, difficulty focusing on long‐term
- Funding source rules
- Lack of board or staff buy‐in
- Underestimating differences in organizational culture
- Lack of attention to communication strategy
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Minnesota Community Action Network
Recent redesign explorations
–Mahube‐Otwa –SW Partnership –Three Rivers/Olmsted –AEOA/Kootasca –Lakes & Prairies/WCMCA
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Roundtable Discussion with MN Community Action Agencies
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Resources
- CAPLAW (www.caplaw.org)
CAPLAW staff attorneys and professional staff are available for consultation on a wide variety of legal and financial issues. Topics addressed include CAA mergers and shared services. Additional case studies and web‐based resources
- n shared services and mergers are forthcoming.
For example, How Sharing Services Can Help Do More With Less, by Peggy Eagan, Children and Family Service Center, Charlotte, NC can be found here: http://www.caplaw.org/conferencesandtrainings/webinardocuments/2012/CA PLAW_SharedServices_May2012.pdf
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Resources (cont’d)
- MAP for Nonprofits
Provides assessment of and support for nonprofit realignment. Learn more at: http://www.mapfornonprofits.org/ See their publication “Merge Minnesota: Nonprofit merger as an opportunity for survival and growth” here: http://nonprofitfinancefund.org/files/images/initiatives/mergeminnesota_ma pfornonprofits.pdf MAP for Nonprofits and Wilder Research issued a report Synopsis: Success Factors in Nonprofit Merger which describes findings from a study of 41 direct service organization mergers in Minnesota between 1999 and 2010. http://www.mapfornonprofits.org/wp‐ content/uploads/2013/10/SuccessFactorsFullReport.pdf
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Resources (cont’d)
- Compasspoint
“The M Word: A Board Member’s Guide to Merger” can be found here: http://www.compasspoint.org/sites/default/files/docs/research/445_mwordfi nal2005.pdf
- Greater Twin Cities United Way
Convened a half‐day New Structures for New Times forum on the topic, and shared new Minnesota‐based research identifying success factors. More information including compiled resources can be found at: http://unitedfrontmn.org/unitedwayforums/mergers‐resources/
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