Merger: A Few More Thoughts

My last post focused on merger as an organizational growth option, not a last-ditch attempt to survive. Sadly, it's often not considered an option until too late. But it, along with its cousins collaboration and partnership, ought to be in every nonprofit leader's lexicon. How does it make it into the ongoing conversation? Here are a couple of thoughts:

Every year, as an organization is evaluating or updating its strategic plan, part of the conversation should focus on where the organization is in terms of its "life cycle" and what its options are for continued health. I think this kind of discussion goes hand-in-hand with planning, but it could be a stand-alone conversation, as well. It may be a conversation that begins at the staff level, but at some point it must migrate to the board level. Institutionalizing such a conversation is one way to enable people to become comfortable with the fluctuating-- and sometimes inscrutable -- dynamic that is the nonprofit environment.

If approached this way, merger isn't relegated to an end-of-life discussion. Just as some for-profits merge at the height of their success, so too can nonprofits. Does it happen much in the nonprofit world? I don't think so.

I hope that all of us approach collaborations with our eyes wide open based on a well-thought out list of pro's and con's that have been reinforced with many stakeholder conversations. A similar list needs to be developed for merger. We should keep that list in our back pocket against the day we might need to use it.

Photo: Merger by ahswan

Comments

What Would Make You Turn Down an Invitation to Join a Board?

THERE'S SO MUCH WRITTEN ABOUT RECRUITING BOARD TALENT, I thought I'd spend a little time thinking about it from the prospect's point of view. Clearly, there are boards where the line is long to get on them. But what would make you turn down an invitation? Here's a short list to get the conversation started: 1. You've had no prior exposure to the organization. Your immediate reaction is "did you pull my name out of a hat?" (Is that lady in the picture the head of the Nominating Committee?) Seems as though there must be a hidden agenda at work (like you're rich and once you become a board member you'll pour all your resources into the organization) or the organization is simply looking for any warm body to fill a seat. 2. The organization doesn't have a good reputation. There's something to be said for street cred. An organization that's floundering may be strengthened by your participation or you may find yourself sucked into...

Three Most Important Nonprofit Executive Director Soft Skills

If you were asked to narrow down the list of executive director qualifications to the three most important, which ones would you identify? Would the list consist of soft skills, hard skills, or some combination? Would your list be based on the great ED you are or one you've worked for, or would it be your wish list for the ED you haven't been fortunate yet to work for? This was an assignment in my recent online class in leadership and administration for the American Association for State and Local History . I asked the class to review three-five advertisements for museum directors and analyze what these listings intimated about the organization’s past experience, current focus and goals, and future aspirations. Then, I asked the class to identify what they consider to be the three most important qualifications they would look for in a director. (Okay, so there's more than three if you dissect my three big groups.) Soft skills outnumbered hard skills, although ...

What to Do With Dead Wood on Your Board?

MY POLL ASKED WHAT ONE BOARD DYNAMIC YOU would change this year and the top response was "remove dead wood". For my first post on this topic I'd like to start with two obvious facts: 1) most boards have some non-performing or under-performing board members AND 2) most boards already have mechanisms in place for removing dead wood...or at least the non-attending dead wood. Those mechanisms are found in the Bylaws and perhaps in a board job description. Few boards, it seems, invoke these mechanisms, mostly out of fear of offending the offender. We end up side-stepping the dead wood, dancing around it, ignoring it, wishing mightily it would go away. Oh, and complaining about it. So, even though the dead wood isn't doing much, it's sapping the energy and focus of many others. (There must be a Law of Physics about this!) Where to start and how to implement? While removing dead wood is not the most pleasant of responsibilities, it does not need to be -- and s...

Leading by Design

Search This Blog