Is Collaboration a Sensible Investment Strategy?

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Wednesday, February 4, 2009

Is Collaboration a Sensible Investment Strategy? Nonprofits are often encouraged by funders and other stakeholders to consider collaboration, and in these tough times, it is mentioned often as a strategy. But is it a sensible investment? There are real challenges in considering any level of collaboration. Consider the investment of time and the element of trust that is needed to build a strong friendship. Similarly, the "collaborative courtship" between organizations also demands those same elements of time and trust to move beyond the competitive turf issues. In thinking about the levels of investment that can be made, it may be helpful to think broadly about a continuum of activities from simple networking to mergers, with a great deal of fruitful activity in–between which can be considered collaboration. It can take many forms, including referral agreements, joint programming, sharing of training expertise, back–office operations or a shared advocacy event. As organizations build stronger levels of involvement, a greater investment of time and trust is required with increasing resulting benefits. Research demonstrates that collaboration can result in policy achievements, cost savings, expanded ability to serve mission, and innovations in thinking. Successful mergers, for example, are often extensions of existing collaborations. However, it may also be important to recognize that while collaborations do involve courtship, they do not necessarily mean marriage. In other words, as Michael Gilbert observes, collaborators "only have to agree on what they are going to do, not on what they believe in." So consider who else may share your common goals, even if they do not share all of your values or strategic approaches. How can you evaluate whether a collaboration is on the right path? Here are 12 of the key elements of successful collaboration based on research and our experience. Common, unique goal Champion to propel Commitment by leaders Clear communication Respectful relationship Results–early, concrete Risk–taking, flexibility Roles defined Structure in place Staff dedicated Succession in place Success–group power Here are additional ways to think about investing in collaboration in tough times. What other groups currently serve as frequent resources for our agency? With whom do we currently network and what level of knowledge or understanding do we have about those organizations? What are my agency's current and recent experiences with collaboration? What have been the benefits and challenges? What are our current needs, interests, and priorities? Is our organization best suited to meet this need, or is a partnership with others a wiser investment? Who else has a shared interest in achieving these priorities or goals? What investments of time and trust have we already built with other organizations that can be further developed? "True partnerships are about shared agendas as well as combined resources, risks and rewards. They are voluntary collaborations that build on the respective strengths and core competencies of each partner, optimize the allocation of resources and achieve mutually beneficial results over a sustained period. They imply linkages that increase resources, scale and impact." (Public–Private Partnerships) About the Author Mary Phan–Gruber is a Senior Consultant at Dewey & Kaye, a McCrory McDowell Company. She has worked in the nonprofit sector for over 25 years, teaches as an adjunct faculty, and has participated in and initiated a number of collaborative engagements. Mary can be reached at mphangruber@deweykaye.com or 412.434.1335. Resources This article also incorporates ideas put forward by the following thought leaders: Nonprofit/Nonprofit Collaboration in Boston. Roy Ahn.Barr Foundation. November 2006. < http://www.barrfoundation.org/usr_doc/Nonprofit-Nonprofit_Collaboration_in_Boston_-_Barr_Foundation__November_2006_.pdf.> Nonprofit Mergers: An Assessment of Nonprofits' Experiences with the Merger Process. 2007 Tropman Reports. Dewey & Kaye. November 2007. <http://www.forbesfunds.org/docs/Tropman2007/NonprofitMergers.pdf.> Nonprofit Collaboration and Mergers: Finding the Right Fit. United Way of Greater Milwaukee, et. al. 2004. <http://epic.cuir.uwm.edu/NONPROFIT/collaboration.pdf.> Definition of collaboration. Public–Private Partnerships: Meeting in the Middle, United Nations Foundation and the World Economic Forum. Denver Office of Strategic Partnerships. <http://www.denvergov.org/strategicpartnerships/BuildingNonprofitCollaboration/tabid/432111/Default.aspx.>