NPL 273  Introduction to Nonprofit Leadership

Strategic Alliances


        I.      Driving Forces of strategic alliance formation

a.       Environmental drivers

                                                               i.      Turbulence

                                                             ii.      Changes in funding climate

                                                            iii.      Performance culture

b.      Internal drivers

                                                               i.      Strategic alliance

                                                             ii.      Financial drivers

                                                            iii.      Managerial drivers

                                                           iv.      Programmatic drivers

     II.      Strategic Alliances defined:  “Capacity-building mechanisms that enable partnering entities to achieve results exceeding those that might be attained on the basis of each participant’s individual resources and efforts.”

   III.      Types of strategic alliances

a.       Terms

                                                               i.      Collaboration

                                                             ii.      Strategic alliances

                                                            iii.      Strategic restructuring

b.      Dimensions

                                                               i.      Intensity

                                                             ii.      Unity of mission

                                                            iii.      Legal linkage

                                                           iv.      Degree of authority

                                                             v.      Degree of trust

                                                           vi.      Measure of change

                                                          vii.      Potential for resistance

  IV.      Stages of strategic alliance development

a.       Initial stage:  Learning about each other

b.      Second stage:  formalizing the relationship

c.       Third stage:  from planning to action

d.      Fourth stage:  determining how to proceed in future

     V.      Partner selection

  VI.      Challenges to strategic alliance formation & implementation

a.       Incompatible mission

b.      Egos

c.       Turf

d.      Cost:  time required

e.       Cost:  funds required

f.        Cultural differences

VII.      Factors contributing to alliance success

a.       Shared vision

b.      Sound Process

c.       Open communication

d.      Atmosphere of trust

e.       Effective leadership

f.        Hard work



© 2004 A.J.Filipovitch
Revised 20 December 2005