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

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