Fio Partners

Collaboration: Getting The Attitude Right

2017-11-20T16:39:44+00:00

When organizations come together, one of the key steps in moving from an informal collaboration to a formalized entity, is the creation of an operating agreement that balances power and responsibility in the structure. This helps provide a backbone to how key decisions will be made and important processes carried out. There are, however, a myriad of other decisions that will take place as implementation occurs and the operations proceed. It is these day to day operations that I want to address. As the relationships unfold, I suggest that the mentality of “partner” should operate in all aspects of decision making, without regard to where each organization sits in the hierarchy and without regard to size or finances.

When one accepts a partner in any endeavor, it means, I think, that you have taken on the responsibility for mutual welfare, that you have given up the right to make decisions independently without regard to the impact on one another in exchange for the mutual benefit that working together will accrue. Both are agreeing to make decisions in this wider context, standing in one another’s places to some degree as choices are made.

These relationships can be easily spoiled when that sense of partnership disappears and the affect shifts to “power over” rather than “power with,” to competition rather than collaboration. At some points along the way as these discussions proceed, questions inevitably arise about “permission.” Do “we” need “their” permission to do…? I think this is typical of the wrong frame for this relationship, not the right one. The right one, is, I believe, “If this is going to potentially affect our partner, positively or negatively, we want them to participate in the decision process. We want their input before we choose. We want to make sure they understand what is going on and to hear about it from us.” Similarly, when one asks something of the other, it shouldn’t be framed as “Do we have to do that? Can they make us?” but rather, “Why would we not comply with this request if at all possible?” Unless there is strong evidence otherwise, you must assume good intent on one another’s parts.

Some might say this is deceptively simple and that we need to think through all the contingencies and parse out the decision making power in a more detailed way. I have not, in my experience, found that to be a useful exercise. First, it is almost impossible to anticipate what circumstances will arise. Second, the very process of attempting to do this sets up a potentially destructive set of dynamics that focuses on dividing power rather than sharing it. What I have found to be most successful is the adoption of a set of mutually respectful norms based on the ethic of partnership and a strong sense of reciprocity.

November 2nd Event - Leadership Matters

2017-09-25T20:00:29+00:00

You are cordially invited to join Fio Partners, for an interactive learning experience. Challenging times ask much of leaders of nonprofits organizations - both for Executive Directors and for Boards of Directors. With expected state budgets cuts on the horizon and increasing demand, leaders require skills for thoughtful, informed decision-making. This session will provide strategies and models to help organizations decide their options to navigate and thrive in challenging times.

Hot breakfast and networking 8:30 - 9:00AM. Program will begin at 9:00AM. $40 per person. CEOs, Executive Directors, and Board members are encouraged to attend.
Purchase tickets at Eventbrite.

Leadership Skills for Enacting Effective Coping Strategies

2013-01-29T19:23:31+00:00

After thirty years of working in the sector, I would have said that I know what a good organization looks like and by good I would have meant an organization that is highly likely to survive, grow, and enact its mission in a dynamic and vibrant way. I would also have said that I know a good Executive Director when I see one and that the two generally come together. The environment now, however, appears to contain variables that we haven’t actually seen before, variables that may undermine the sector in significant ways and that certainly make it far more difficult to sort the “good organizations” from the weaker entities, the effective Executive Directors from the less so. As we support and guide leaders of nonprofit organizations from small to large, we have had cause to question what we previously would have said are the most important organizational skills for management and leadership to attain.

So, this is a first attempt to raise some questions and open a dialogue with sector leaders who know us about this very interesting place in which we find ourselves. Can we at this point identify knowledge and skill that nonprofit leaders should pursue that will enhance survival, growth, and mission enactment? Are those characteristics the same as they have been for the last twenty years as the field of nonprofit management has come into its own? Or are they different? As the environment has turned from positive to negative in much of the sector, how does that change the management and leadership task?

We are going to come at this from two vantage points…first, when we say the environment has turned from largely positive to largely negative, what are we seeing? We will focus on those environmental aspects that appear to us to demand a new way of managing a nonprofit. Second, we will talk about the management and leadership skill sets that we see executives adopting in response. And then we will ask you, our clients, colleagues, and friends, to respond with your own comments and suggestions. As we receive responses, we will continue to refine this effort at model building and report back what we have learned.

In 2008, when the recession began in earnest, we all thought we were in for a couple of tough years and, as the economy recovered, so the sector would recover and continue to grow as it has for the last two hundred years in both the US and Canada. That isn’t what has happened, of course, and we all know that most state economies have gone from bad to worse and large chunks of federal funding are threatened. Essentially, the sector is facing the worst market scenario in its history with falling prices, rising costs, and rising consumer and funder expectations. [Read more here.]

From this analysis, and based on our observation, comes a set of knowledge and skills that appear to help executives craft a coping strategy to adjust to these changes. These are:

Understanding Collaborative Models
Know When to Fight: The Role of Advocacy
Retrenchment Skill: Know When To Fold
Retrenchment Skill: Know How To Shrink
Evidence Based Practice
Maintaining Staff Cohesion: Managing Morale Through Negative Change
Passion For Ends, Not Means
Making Tough Decisions

Download the full free article here to read more about these critical skills.

So that is our starter list. What have you observed? Are you developing new skills or do you need to behave in different ways because of this context? We are hoping you will become part of a larger conversation…please share your observations and examples by commenting here or emailing us at info@fiopartners.com. We will gather together the feedback we receive and continue to fill out this model.

2012 Year in Review

2013-01-29T16:30:57+00:00

Before we launch too far into 2013, we thought we would take a look back at 2012! Take a look at the highlights and themes from last year!

For an even closer look, view our infographic on Pinterest!

Collaboration: Getting the Ball Rolling

2012-07-06T10:47:44+00:00

When the CT Association of Nonprofits asked us to write an article on nonprofit collaboration, we asked, “Where do you your nonprofit members seem to struggle with collaborative efforts?”. The response was that everyone is talking about about collaboration, collaboration, collaboration…but some nonprofit leaders struggle with how to just get started. Based on our firm’s deep experience in supporting collaborative efforts among large groups of nonprofits, we crafted an article which provides an initial roadmap for organizations interested in creating collaborative relationships. If you would like to learn more, you can read the full article here. If you are interested in learning more about how Fio Partners can support collaborative efforts, contact us or learn more about our services.

Fio Partners Interview featured in Hartford Business Journal

2012-02-13T17:08:17+00:00

We are very pleased to share that Anne Yurasek of Fio Partners was recently interviewed by the Hartford Business Journal. You can read the full text of the interview online at the Hartford Business Journal or below.

Free strategy seminars focus on nonprofit issues
By Matthew Broderick
Special to the Hartford Business Journal

Nonprofit leadership has never been easy.

Whether it’s creating the right vision for the organization, securing sustainable funding, or maintaining a happy workforce, executive directors have often shouldered the responsibility for key decisions that drive an organization forward. But in the current economic landscape in Connecticut — with fewer financial and staff resources to address skyrocketing demand for services — many executive directors are confronting more complex decisions than ever, from program cuts to strategic alliances and consolidation, with potentially far-reaching consequences to their organizations.

And, as many nonprofits in the state adjust to the “New Normal” of greater collaboration and the need for more diversified funding, Anne Yurasek says many executive directors may struggle to forge strong partnerships because they often lack the right relationships or sufficient information to make the best decisions for their organization.

“The biggest impediment to more collaboration [among nonprofits] is trust,” said Yurasek, co-founder Fio Partners, a New England-based nonprofit and government consultancy firm with a Higganum office. “The reality is that many organizations — especially those with similar missions — have traditionally viewed each other as competitors [for funding].” However, as financial resources are shrinking, many executive directors, says Yurasek, are expressing greater interest in collaborating.

And Yurasek’s firm is looking to help. In fact, Fio Partners, which has served more than 250 nonprofits since its founding in 2005, will be offering a free monthly strategy session for Connecticut executive directors focused on key emerging trends in the sector: success factors in collaboration, generating new revenue through social enterprise and strategies for addressing morale issue. The first session is Feb. 16.

They are common challenges that many nonprofits share, regardless of size or area of focus. And Fio’s small group sessions (attendance at each session is limited to 12 executive directors) are designed to be one part strategy, one part Dr. Phil.

“We want to bring nonprofit leaders together to get them talking,” said Yurasek. “So many executive directors are busy keeping their heads — and organizations — above water these days, that they often don’t invest the time in building relationships with other nonprofits.”
That insular approach, Yurasek contends, has led to incredible redundancy in the nonprofit sector. “You might have five of six organizations in a region doing similar work,” she said. “We’re trying to educate [executive directors] about how to evaluate opportunities to increase efficiency through sharing office space or a shared fundraising resource.”

And increasing efficiency may, in turn, help improve the sagging morale that many employees in the nonprofit sector feel. In fact, according to a recent report in the Chronicle for Philanthropy, more than one-third of nonprofit employees nationwide say they lack emotional investment in their work and a shared sense of mission for their organization.

The news for the sector, however, isn’t all dour. Many organizations have begun hiring again, according to recent survey by the University of Connecticut Nonprofit Leadership Program. While that news indicates the progress the sector has made since the depths of the recession a few years ago, it still presents challenges for executive directors — who continue to face a tight funding landscape.

It’s a landscape that Fio Partners hopes to help nonprofits navigate. “We want to educate organizations about opportunities like social enterprise [a business arm of a nonprofit] that can help organizations generate revenue and be less reliant upon outside sources,” Yurasek said.

While social enterprise is an option that more nonprofits seem willing to explore, they often take time to generating funding for an organization, Yurasek explained. Add it to the list of complex decisions that executive directors across Connecticut will need to make in 2012 and beyond.

For now, Yurasek hopes her firm’s first round of strategy sessions will help some of those nonprofit leaders make those difficult decisions more effectively.

2012 Executive Director Strategy Sessions

2012-01-17T14:46:45+00:00

The pace of change in the nonprofit sector is continuing to increase. Nonprofit leaders are challenged to maintain their current services, as demand for those service increases and the funds available to support those services continue to shrink. There is very little time to learn, to pause to consider other strategies, or to find respite in relationships with other leaders facing similar challenges. Fio Partners is very excited to offer a three-session program, at no charge, to nonprofit leaders to create a forum to learn, to share experiences, and to build relationships with your peers.

The schedule for the Executive Director Strategy Sessions is as follows:

Thursday, February 16th : Critical Success Factors for Collaborative Efforts
Thursday, March 15th: Social Enterprise: A New Model for Generating Income
Thursday, April 19th: Innovative Strategies for Addressing Morale Issues
Thursday, May 17th: Succession Planning
Wednesday, June 20th: Social Media Strategy Development: Is it worth it?

Each session will be held in the Fio Partners office located at 11 Scovil Road in Higganum, CT from 9AM - 12PM. The session will include opportunities for networking, a brief topic presentation and topic discussion, and an open discussion on other challenges you are currently facing. The sessions will be limited to 12 participants. Registration is online using the links above.

We hope to see you there!

Happy Holidays!

2011-12-30T16:26:51+00:00

Are there too many nonprofits?

2011-12-19T19:33:51+00:00

In our work around strategic alliances in and among nonprofit organizations, I am often asked: Are there too many nonprofits?

In many instances, there are too many nonprofits…and in other areas there are too few. It is a bit like saying there are too many churches, or too many businesses…a useless generalization without specific context.

There is an ecology to the nonprofit sector that is as rigid as the for profit marketplace ...nonprofits exist because people (foundations, government, corporations, small businesses, individuals as donors and/or volunteers) decide they should exist and then provide the resources to support them. If the resources disappear, the nonprofits will as well. The sector is inefficient where there are sufficient resources to pay for inefficiency….and it is very efficient where
those resources are scarce.

Getting the Right People on the Bus: It’s all about your nonprofit’s stage of development….

2011-11-29T16:04:46+00:00

So Anne has been writing about how to fix dysfunctional Boards (Part I and Part II) and clearly her analogy draws on the adage, “Get the right people on the bus.” It is a great concept when related to Board development but we often see organizations struggle to identify who the right people are. We often see Boards who just don’t match what an organization needs. Too often, we hear that a Nominating Committee has used a standard grid representing age, race, key skills, and geographic distribution to guide their thinking about who should be invited to serve. They follow the grid, but the Board that results is less than successful. More often, Nominating Committees just pull out their rolodexes and call their friends, colleagues and contacts.

In actuality, the character of Board members really should change as an organization evolves, so knowing the stage of development of your organization is an important element of understanding how to recruit an appropriate Board. While the main tasks of legal stewardship don’t change as an organization evolves, other aspects of Board service do. Let’s think about start up…as a very young organization you want people who have the passion and commitment about the mission to put up with the chaos of start up. A young organization needs energy and often Board members can make the difference when things get tough. It is unlikely at this stage that you will be able to recruit major donors or very powerful people but you also don’t need them at this point….you need believers. Start up is about crafting an identity and figuring out what change you want to bring about in the world, building competency and credibility. Boards need to be problem solvers, help with the hands on work of start up, and they need to be cheerleaders.

During the growth stage, as the organization gathers momentum and goes through many transitions, a Board that can provide technical knowledge and skill can really help. Mid managers from business, a CPA, and an attorney can all contribute their knowledge and skills at key points as the organization grows. Once an organization is established, with a strong track record of solid accomplishment, it is easier to compete for more powerful and influential board members. How do you know when that transition from growth stage to established stage is happening?

Benchmarks to look for include: you have a diversified funding base that includes multiple sources of revenue other than fund development; your programs have been evaluated and you can document proven outcomes; your organization has a clear brand and your reputation is strong and positive; your Executive Director is influential…his or her opinion is sought and respected in your field of service. When all of those benchmarks are met, then your Nominating Committee can consider people of influence with a strong track record as fundraisers. We sometimes call this group “the giving community” because in every region they are easy to indentify as donors, Board members, and active community contributors. They spend a lot of time working with nonprofit organizations and attend benefits as a primary activity in their social lives. They are the backbone of philanthropy and can make an enormous difference in your fundraising efforts. The key to securing their commitment though is to build an organization worthy of their investment.

You are far better off recognizing the stage of development of your organization and recruiting accordingly. Curious about how to determine your stage of development? Use Fio Partners Strategic Growth Guide to get you started….

Fixing the Bus: Turning Around a Dysfunctional Board

2011-11-21T13:47:43+00:00

In Part I, I shared with you the tale of a dysfunctional Board of Directors (i.e. the big yellow bus) with no direction and a lost group of reluctant, but well-intentioned passengers. To turnaround a dysfunctional Board takes motivation and an investment in time and energy. How do you get started?

Bus Driver = Executive Director: Nonprofit organizations are led by a shared base of power between an Executive Director and a Board of Directors. That being said, to turn around a Board of Directors requires strong leadership from an Executive Director. The ED and the Board can collectively create a plan for the future (see #2) and then the Executive Director can lead, support, and cultivate the Board to ensure its contribution to moving the mission forward. Through participation in a Nominating Committee, meeting with Board members individually, and ensuring the Board understands its role, an Executive Director can be the impetus and leader for improving a challenging situation.

Have a Map: A strategic plan or set of multi-year goals can act as the framework for the Executive Director’s and the Board’s activities. The Board should create Annual Goals for its work and contribution to moving the strategic plan forward. The goals should include desired timelines, and Board members should lead the progress toward the completion of the goals.

Get the Right People on the Bus: Recruit Board members to support the implementation of the strategic plan or multi-year goals. If the plan includes fundraising, recruit individuals with Board service experience and fundraising experience. If your organization is undertaking a construction project, consider adding individuals with construction or lending experience. There should be a correlation between where you want to go and who can help you get there.

Tell People Why They Are on the Bus: Consistently remind Board members about their responsibilities, whether it be as a hands-on volunteer who helps the organization move smaller projects forward or as a group providing governance and oversight to the activities of the organization - be clear about their role in moving the strategic plan and organizational mission forward. [Note: This may change depending upon the organizational stage that the organization is in!]

Have Fun on the Bus: If Board meetings are boring and do not let Board members share their expertise with the group, consider ways to improve them by shortening the reports from staff and including topics for discussion or consideration. Add guest speakers or professional development presentations to raise the skill or knowledge level of Board members. Track progress against the Board’s own goals and celebrate achievements. Strengthen the social cohesion of the Board by including opportunities for conversations and relationship building outside of Board meetings.

Stop at Rest Stops: A bi-annual Board survey can tell you if the Board is functioning at its best. The results can be used as a check-in and allow continuous improvement of Board process and engagement.

Being a Board member does not relegate you to years of boring meetings with a cacophony of personalities with no direction. Be the Executive Director or Board member who helps to figure out what the map says, work together to recruit the right people onto your bus, and make positive change happen.

Photo Credit: LadyDragonflyCC

Where is this bus going? A Tale of a Dysfunctional Board

2011-11-16T14:28:25+00:00

Recently I was asked, “Why are Boards so dysfunctional?” This individual was not new to Board service and was, in fact, serving on three nonprofit Boards. He lamented, “It seems that every Board has its issues, whether it be a lack of direction, challenging personalities, or just lack of ability to get anything done…. Why is this the case?”

It all comes down to…the story of the bus.

Once upon a time, there was a big, yellow school bus filled with a group of well-intentioned, passionate volunteers who all believed in a common cause. The bus was driven by a charismatic yet thoughtful Board chair who worked with the passengers to lay out a course for their travels. These initial travels were exciting! An organization was building, and positive change was the view out the windows. Passengers were energized by the quick progress and dedicated to staying on the bus as long as needed.

Over time, though, some of the initial passengers became tired of the journey. Reluctantly, the bus driver allowed passengers to get off. Yet the bus driver knew they needed more passengers to move their mission forward. Unclear of their direction (it had been quite some time since they looked at a map), they stopped at “Resume Builder” and picked up a few new passengers - younger folk who saw Board service as a great opportunity. The bus then turned the corner and stopped at “Local Business Owner” - a passenger with expertise in construction and a lawyer who worked in the community jumped on. The folks on the bus were quieter during this leg - asking a few questions here and there, but trusting the driver to move the mission along. The view was sort of monotonous - programs, a fundraiser here, a fundraiser there, more programs. Another quick stop at “Retirees” and “Overcommitted Parents” yielded a few more well-intentioned passengers. Then one day, the Board chair who had served a lengthy term as bus driver decided the time had come to move on and he stepped off the bus at “Free time”.

The passengers looked around the bus. There was no one left from the original group of passengers.

“Who would like to drive?” they asked.

“Well, I think we should go down the highway,” said one of “Resume Builders”.

“Perhaps it might be better to stay downtown,” said the “Overcommitted Parent.”

“That sounds like a fine idea,” said one of the “Local Business Owners.” “I guess I’ll drive, if no one else wants to. And I guess we will stay downtown.”

No one on the bus had any better ideas or offered to drive (feeling grateful that someone had volunteered). No one really felt comfortable arguing or offering a different view point. ‘No need to offend or ruffle feathers’, they each thought.

And that’s what they did.

So what is wrong with this picture? Typical Boards are challenging because:

People join Board for a variety of reasons.
Boards rarely have structures in place to lay out direction and ensure that knowledge is passed from older to newer members.
Boards do not discuss the types of members that would help move the journey forward.
Boards rarely discuss their own process to ensure that discussion allows and encourages alternative points of view.
Board decision making is based upon a very limited base of information - or in a worst case scenario - the information in one person’s head.

How does this tale resonate with you? Does this remind you of Board experiences you have had? Stay tuned for our next installment: Fixing the Bus: Turning Around a Dysfunctional Board!

Photo Credit: b3d_ via Flickr

Fall 2011 Learning Opportunities

2011-09-19T19:27:02+00:00

Fio Partners Management Development Series:
• October 4th - Introduction to Supervision
• October 18th - Understanding and Addressing Performance Issues
• November 1st - Improving Your Communication Style
• November 15th – Managing and Communicating Change
• November 29th – Evaluating and Improving Workplace Climate
Time: 9:00AM – 12:00PM
Location: Fio Partners Offices, 12 Scovil Road, Higganum, CT
Cost: $70 per session, or $320 for all five sessions
Register online!

Fio Partners Board Development Series:
• October 18th - Board Basics: Creating a Strong Foundation
• November 15th - Planning for the Future: A Strategic Planning Toolbox
• November 29th - Board Sustainability: Innovative Strategies for Member Recruitment
Time: 7:00-8:30PM
Location: Fio Partners Offices, 12 Scovil Road, Higganum, CT
Cost: $40 per session, or $100 for all three sessions
Register online!

Strategies for Saving Money in the Back Office on November 3rd, Danbury, CT
In partnership with the CT Association of Nonprofits
In times of scarce resources, nonprofit leaders are continually asked to do more with less. This workshop will provide practical advice and strategies for saving money on back office administrative functions. Workshop attendees will learn to analyze their current expenses and determine areas where increased efficiency is possible. Key recommended strategies will include joint purchasing, outsourcing, and models for sharing services amongst groups of organizations. The workshop will also include an interactive panel with representation from service providers and nonprofit leaders utilizing these strategies. Panel discussion followed by Q&A featuring: Jason Shaplen, Chief Executive Officer, St. Luke’s Life Works and Richard Luna, President, Protected Harbor.
Thursday November 3, 2011 | 9:30 a.m. – 12:30 p.m.
Union Savings Bank, North Street Branch
126 North Street, Danbury, CT 06810
Fee: $45
Register online!

If you cannot attend the sessions and/or would be interested in having Fio Partners deliver these sessions for your organization or in your area, please contact us.

June 21st - A workshop for Connecticut CPAs working with Nonprofits

2011-06-15T18:33:53+00:00

We are pleased to announce that Fio Partners will be presenting at an upcoming conference in CT. The Connecticut Society of Certified Public Accountants is holding a Nonprofit Organizations Conference on June 21st in Plantsville, CT. Jane will be speaking in the afternoon on “Mergers & Acquisitions”. The workshop will focus on how to use mergers and acquisitions to create growth in a non-profit context. The presentation will include material on the efficient mechanics of mergers and acquisitions, with lessons learned illustrated from case examples.

Managing and Leading: The Helix as a Metaphor for Organizational Change

2011-03-14T19:13:58+00:00

If we think of the tasks of managing and leading (M&L) as activities that steer an organization in a certain direction and sustain its well-being, then it stands to reason that there are themes embedded in that set of management and leadership tasks. My thesis is that the themes really don’t change even though the environment may fluctuate wildly around us. The picture to below is a helix.

DoubleHelix If we think of an organization embedded in its environment and evolving over time in a specific direction, it takes on this very organic form. I especially like the image because the helix is the basis of DNA, an essential component of all life forms. Margret Wheatley, in her book Leadership and the New Science, talks about the similarity between organic life forms and organizational development. As I have thought about her work, I have found this metaphor for organizational change of a helix spiraling through space and time helpful.

What I come away with from this image is two sets of characteristics…one, the themes that weave together the spiraling outer core (the boundary between the entity and the world around it) and two, the bars that keep the helix from spinning apart. What are they made of? I think of them as lines or themes or threads of cohesive strategy that must be carefully thought through and shaped if the entity is to thrive in whatever world it is in. They are also streams of energy that are initiated, sustained and shaped by leadership. If we think of a leader as a helmsman or a driver, then these are the rudders or the reins by which we steer.

I see those themes as:

1. The lines of continuity: these are the bars that hold everything together. These are the organizational elements that endure through time or that change very slowly, things like vision, mission and values, policies, attributes of culture, engagement in a system of related products or services, practice philosophy, management principles. Managing these ensures that there is a stable set of concepts and ideas that provide a conceptual framework for internal stakeholders (board, staff, volunteers), to count on through time. They provide a sense of cohesive identity that allow people to understand how to engage, support, and function within the organization.

2. The lines of accountability: these are made up of threads in the outer spiral and are embedded in the internal reality of a functioning entity. Some endure and some change. They include internal elements such as data collection and evaluation, quality assurance and practice improvement as well as the continuous adjustment of the outside threads of funder, donor, and regulator interaction and reporting. Managing them expertly enhances the likelihood that resources will flow into the entity.

3. The lines of adaptability: these are threads in the outer spiral that are permeable and chameleon like, that allow information about how the environment is changing to come inside where it can be considered, thought about, and allowed to shape how an entity charts its course and changes its colors. These threads are all about relationships and connections at their outermost edge and about innovation and change at their inner edge. Managing these threads well ensures that an entity can adjust, survive, and continue to do well as the environment around it shifts and changes.

These lines inform and support the strategic and tactical decision making of managers and leaders. We will look at how to shape each one and how each relates to the various levels of decision making and to the shared power model on which every nonprofit is based as we proceed.

Are you exploring consolidation? Which segment are you?

2010-11-29T13:28:27+00:00

I attended a meeting recently about a local United Way conference that potentially will deal with exposing nonprofits to models and ideas concerning consolidation. As the discussion proceeded, the complexity of the issue kept coming up. One of the conclusions was that there might actually be different market segments of organizations, and that, perhaps, the segments are distinct enough to actually provide programming for them differently….maybe.

So this conversation has been niggling at the back of my brain and I thought I would attempt to define the segmentation. In some ways all of these groups are early adopters of the technologies of consolidation.

The Innovators: These are organizations that are pushing the cutting edge of their fields or the sector. Think social innovation. These organizations are mostly new, young, and flexible. They don't have entrenched boards or lots of money to spend, or lose. They do have ideas, lots of them. Because they are young, they are not hung up on structural change or working collaboratively. This segment also includes some older and more established organizations who are market/client driven and are intent on capturing larger market share or just serving people better, and are not afraid to change their structure, either through alliances, networks, subsidiaries, or mergers in order to accomplish their aims. I include in this group some of our larger clients who are beginning to articulate an acquisition plan as part of their strategic management work…a completely new phenomenon in the sector.

The Cost reducers/Back office enhancers/Group purchasers: These organizations are experiencing declines in revenue but not so much decline that their organizational lives are threatened. They are interested in either reduced back office costs or enhancing their back office supports. By sharing space and/or back office services such as finance, human resources and information management, these organizations are seeking a better return on their investment on infrastructure expense and/or the ability to shift funds spent on administration to programming to meet increased demand. This segment is very broad and includes arts organizations, environmental groups, and health and human service entities.

Negotiators of Systems Level Change: There are a number of human service systems that are affected by significant field changes that would have happened anyway, even without the recession. Examples include the movement of the child welfare field away from long term residential placements for kids and changes in adult education that more clearly link adult education programming to workforce development efforts. The recession has picked up the pace on these initiatives but did not cause them. There are also systems changes that directly relate to the recession, e.g. the nursing home industry, where threatened programming cuts in state contracts are so severe that there is a need to completely rethink how the system will operate with greatly reduced funding.

The Nearly Bankrupt: These are organizations that have cut staff, reduced programming, cut benefits, exhausted their reserves, and are running out of options. These are merge or die situations in which the goal should be to salvage that unique program that no one else has, preserve jobs for particularly talented staff, pass on unique tacit knowledge that would other-wise disappear, or ensure that the nonprofit's assets are appropriately reinvested in services with a similar mission. This group also includes organizations who are being pressured by funders to close due to quality issues, either to close specific programs or to shut down completely.

The Vast Majority: Those who are either not feeling economic pressure or prefer to shrink to a smaller size than share resources or give up autonomy.

I can already see some overlap in these groups and some "combos" that share attributes of more than one segment, e.g. organizations facing system level changes may simultaneously consider back office consolidation. The question for capacity builders is whether we actually need different educational programs or support services for these groups. What do you think? For nonprofits, which segment do you see your organization in? What types of programs or support services would be most helpful to you?

Some thoughts on market segmentation relative to consolidation in the sector

I attended a meeting this week about a United Way conference that potentially will deal with exposing nonprofits to models and ideas concerning consolidation. As the discussion proceeded, the complexity of the issue kept coming up. One of the conclusions was that there might actually be different market segments, and that, perhaps, the segments are distinct enough to actually program for them differently….maybe.

So this conversation has been niggling at the back of my brain and I thought I would attempt to define the segmentation. In some ways all of these groups are early adopters of the technologies of consolidation.

1. Innovators: these are organizations that are pushing the cutting edge of their fields or the sector. Think social innovation. These organizations are mostly new, young, and flexible. They don’t have entrenched boards or lots of money to spend, or lose. They do have ideas, lots of them. Because they are young, they are not hung up on structural change or working collaboratively. This segment also includes some older and more established organizations who are market/client driven and are intent on capturing larger market share or just serving people better, and are not afraid to change their structure, either through alliances, networks, subsidiaries, or mergers in order to accomplish their aims. I include in this group some of our larger clients who are beginning to articulate an acquisition plan as part of their strategic management work…a completely new phenomenon in the sector.

2. Cost reducers/back office enhancers/group purchasers: these organizations are experiencing declines in revenue but not so much decline that their organizational lives are threatened. They are interested in either reduced back office costs or enhancing their back office supports. By sharing space and/or back office services such as finance, human resources and information management, these organizations are seeking a better return on their investment on infrastructure expense and/or the ability to shift funds spent on administration to programming to meet increased demand. This segment is very broad and includes arts organizations, environmental groups, and health and human service entities.

3. Negotiators of systems level change: there are a number of human service systems that are affected by significant field changes that would have happened anyway, even without the recession. Examples include the movement of the child welfare field away from long term residential placements for kids and changes in adult education that more clearly link adult education programming to workforce development efforts. The recession has picked up the pace on these initiatives but did not cause them. There are also systems changes that directly relate to the recession, e.g. the nursing home industry, where threatened programming cuts in state contracts are so severe that there is a need to completely rethink how the system will operate with greatly reduced funding.

4. The nearly bankrupt: these are organizations that have cut staff, reduced programming, cut benefits, exhausted their reserves, and are running out of options. These are merge or die situations in which the goal should be to salvage that unique program that no one else has, preserve jobs for particularly talented staff, pass on unique tacit knowledge that would other-wise disappear, or ensure that the nonprofit’s assets are appropriately reinvested in services with a similar mission. This group also includes organizations who are being pressured by funders to close due to quality issues, either to close specific programs or to shut down completely.

5. The vast majority: those who are either not feeling economic pressure or prefer to shrink to a smaller size than share resources or give up autonomy.

I can already see some overlap in these groups and some “combos” that share attributes of more than one segment, e.g. organizations facing system level changes may simultaneously consider back office consolidation. The question for capacity builders is whether we actually need different educational programs or support services for these groups. Don’t know…helpful? Not helpful?

Consolidation of the sector? Maybe not.

2010-11-19T11:26:34+00:00

Well, the study is out. One would have thought that, if the sector was going to consolidate in a big way, that time would be now. Our firm is certainly doing some of this work, and as I check with colleagues around the country, so are they. But the numbers are not overwhelming. The new study, released in October, by the Urban Institute may give some insight into why that is. See Human Service Nonprofits and Government Collaboration: Findings from the 2010 National Survey of Nonprofit Government Contracting and Grants.

Most common coping strategies used to deal with government cutbacks and/or late payments were:

Freezing or reducing employee salaries
Reducing the number of employees
Drawing down on reserves
Reducing health, retirement or other benefits
Borrowing
Cutting programs and services

Consolidating with other entities didn’t make the list of coping strategies. Organizations would rather shrink than partner, it would seem. There has been a fair amount of effort on the part of foundations, United Ways, and nonprofit associations to educate the sector about models to capture partnerships and to encourage this thinking.

I am wondering though if we are going at this the wrong way. I think we have this upside down. I always teach that form follows function, that you have to know what you are trying to accomplish before you decide what structure is best suited to the purpose. But each and every time we have one of these discussions about all the different ways organizations can get partner (the structures), we never really get around to talking about what they want to do, or what they need to do, or why “ it” is important or whether partnering is necessary to get “it” done. The structures, including mergers, are just tools. Organizations should work together for a purpose…and given how often having partners is really quite annoying, the purpose has to be worth it. Maybe the focus should be on inspiration rather than mechanics....on brainstorming some big outcomes that can only be accomplished by coordinated effort…and stimulating that discussion with examples of folks who are at least attempting to do big, important things and have found that they need new and different structures to do those things.

We know some people like that and it is an honor to be working with them. But what are you experiencing? Are you and your partners asking the big questions? Or just working to keep the doors open?

Getting back to writing…

2010-11-17T14:07:33+00:00

Apologies to our readers for the long the delay in adding to our blog posts. These have been difficult months with major surgery, a long recovery and then resuming our consulting practice post that event. Enough excuses though. On the upside, the long hiatus has given me the opportunity to do a lot of reading. So the head is full and the pages are empty, at least so far.

Very recently, I have stuck my toe in the water of a social networking site called Triiibes founded by Seth Godin, an incredible marketing genius.   The site is like a city and brings minds from all over the globe into proximity with the goal of promoting innovation and disseminating ideas. It is heady stuff.

Last night's discussion was about change and how change happens. It began with some introductory remarks about the level of incivility in the media and public discourse and the intense animosity that seems to be everywhere.   Are we changing minds by all of this frantic and highly emotional discourse? Or is this just an excuse to vent frustration and batter one another?   It is easy to beat up on the people we disagree with…it is much harder to try to encompass in our own brains the point of view of "the other."

What I liked about this conversation was where it ended last evening (it yet may continue for days).   There seemed to be agreement among the participants that effectively changing the world for the good is not noisy and combative.   It is not about hype and media attention.   It is about attracting one person, educating one person, working with one child or one adult, and teaching the skills of effective listening, collaboration, and conflict resolution. There is a wonderful and perfectly ordinary school system in a small town in New England. Ten years ago they had a bullying problem at the high school. Now teachers see a marked improvement in how children treat one another. Why? They instituted a robust curriculum that teaches these skills starting in kindergarten. This is known knowledge…this is not a mystery. We just don't do enough of it.

Nonprofit Collaboration - Tools and Funding Opportunities

2010-06-02T13:35:32+00:00

In the last month or so, we have come across some exciting funding opportunities for collaboration as well as some online tools that may be helpful to nonprofits looking to collaborate!

IdeaEncore

The IdeaEncore Network is an online marketplace for the sharing of ready-to-use tools, presentations, course outlines, templates, and project plans within and between nonprofit organizations. The system is designed to provide incentives for sharing and a range of intellectual property protections for shared materials. If there is a network of nonprofit agencies interested in sharing materials, the network provides a free, easy-to-use platform. Those materials can also be free to network members, while being offered at a cost to other nonprofits using IdeaEncore. This tool promotes not only knowledge sharing, but provides the opportunity for revenue generation. What excites us most about IdeaEncore is the deep set of relationships with nonprofit capacity builders that the creators have established, from the Alliance for Nonprofit Management to the CT Association of Nonprofits. IdeaEncore is working to establish itself as the go-to site for nonprofits interested in saving time (by not re-creating the wheel) and learning from others. We are also pleased to announce that we have shared many of our articles and materials with the IdeaEncore network as well. Check this new tool out!

GoogleDocs

So here's the issue: a group of nonprofits with information, interested in sharing that information across the group, who have realized that combining excel spreadsheets by hand is cumbersome and time-consuming, and the information must be gathered quickly? Answer: GoogleDocs. Free, easy to use, and easy to access. The Spreadsheet option allows you to create a spreadsheet (similar to Excel) the can be shared with anyone using an open URL link. The spreadsheet can be edited - or locked for viewing. If you are interested, in a quick solution to support a collaborative effort, GoogleDocs can be immensely helpful. If you would like some additional support on how to do this, we are happy to help.

Funding Opportunity in Connecticut: Nonprofit Incentive Collaboration Grant Program

It has come to our attention via an email this morning from the Nonprofit Assistance Initiative, which is part of the Connecticut Community Foundation and the United Way of Greater Waterbury, that the State of Connecticut has announced a Request for Applications for grant funding for two or more nonprofits to collaborate. The program's purpose is to provide grants for one-time infrastructure costs to implement consolidation of programs or services. Grant funds may be used for the purchase of, or improvements to, facilities; refinancing of facility loans; equipment purchases; energy conservation, transportation and technology projects; planning and administrative costs related to such purchases, improvements, refinancing, or projects; and relocation expenses related to physical consolidation. The term “programs and services” is broadly defined to include joint ventures involving share business operations, functions, or services. There is total of $5 million in funding available statewide. The deadline for applying is September 22, 2010. For more information, view the application instructions.

2011 Collaboration Prize

The 2011 Collaboration Prize, a national award designed to identify and showcase models of collaboration among nonprofit organizations, is now accepting applications. The Collaboration Prize will award a total of $250,000 to the collaborations that best exemplify the impact that can result from working together. Each of the eight finalists will receive $12,500 and the winner will receive an additional $150,000. The finalists and winning collaboration will be announced in April 2011. The online application, eligibility criteria and details about the selection process are available at thecollaborationprize.org. There you also can learn more about the 2009 Prize finalists and winners and access the Nonprofit Collaboration Database, resource for everyone seeking real-life examples of how nonprofit organizations are working together. The application process closes on July 16, 2010.

Have you come across other tools and funding opportunities focused on collaboration? Share them here!

Getting Started with Nonprofit Collaboration

2010-03-27T13:59:34+00:00

At a recent event sponsored by the Liberty Bank Foundation, Jane was asked by an audience member, "I have no resources to pay a consultant to help us determine if we can identify ways to collaborate with other organizations or even merge. How can I get started?" Jane responded, "All it takes is a relationship, knowledge about the possibilities, and a cup of coffee."

What do we mean by that? It is important for you to not just think of your own organization's survival in these times. We encourage our clients to think about the organizations that support the populations they serve and to consciously construct a relational map. Then monitor that map to understand the effects on the organizations in their arena. Who are the organizations that refer clients to you? Who do you refer to for ancillary or supportive services? If your clients need housing supports, or basic needs supports, who is providing them? Who are your competitors and what shape are they in? What are their plans…which programs will they close or cut back on? If you have partnerships with other organizations, how are they doing? Will they be able to maintain their contribution to your joint work? What is the status of your relationship with the leaders of these organizations? After developing your own relational map, identify the individuals/organizations with whom you have strong, positive relationships and/or a common focus, client base, or geographic area.

The other component that we believe strengthens these conversations is knowledge about the possibilities. There has never been a time where understanding what is possible has been more crucial. Nonprofit leaders must learn how to use models of collaboration and consolidation: formal agreements, joint ventures, management service organizations, networks, parent corporations and mergers. There are innumerable examples that can be searched and examined on the Lodestar Prize Collaboration website. The National Council on Nonprofits recently compiled a guide to sources that are available: . In addition to Jane's book, Forging Nonprofit Alliances, we also recently published an article for funders who are considering how to support these types of efforts that also may be helpful to you. It is up to you to build your understanding of the possibilities that are available to you.

What next? Here comes the coffee. Collaborative efforts can simply begin with a cup of coffee and a conversation with another nonprofit leader that you have identified as a possible partner - not with a lawyer or an expensive feasibility study. Key questions for your discussion may include:

Where are our efforts to support our clients aligned?
What are the impacts of the current environment on our clients?
Are you interested in exploring ways that we can support one another?
What is the status of your programs and funding?
Who else may be interested in talking with us?

So give it a shot, consider the options, and reach out to a potential partner…what have you got to lose?

Are you already collaborating with other agencies? How did you get started? What was most helpful to you? We will share responses and suggestions in a future blog entry.

Photo Credit: DeePeaJay