Preparing for the future starts with re-thinking your present model for sustainability. While the prospect may not be staring you in the face, there are likely several interesting partnerships your organization could consider that would enable it to more effectively meet its mission – perhaps in ways you have not yet imagined.

Mergers and other forms of strategic restructuring have gotten tremendous attention recently as both a sustainability and opportunity strategy in the midst of an economic downturn and the resulting decline in charitable giving.

One barrier we frequently observe in assisting organizations that are considering strategic restructuring options is the fear of losing your identity. This is an especially significant consideration in the arts sector, where artistic and organizational identity often go hand in hand. But loss of identity is not an inevitable outcome of a merger. An example of this is the pending merger of the Oakland East Bay Symphony, the Oakland Youth Orchestra, and the Oakland Symphony Chorus, who have recently decided to combine into a single corporation while maintaining their existing individual identities. This will allow them to consolidate administrative functions – thereby saving money and increasing efficiencies – while maintaining the specific programming and artistic visions that are so important to them. The merger also provides an opportunity to introduce each of their existing audiences to the programming of the other two.

When a merger does transform your identity, it can do so in ways that enable you to meet your mission in in new and more powerful ways.

Consider the example of two organizations currently in merger negotiations. Serving the same geographic area, one has worked on domestic violence issues while the other has worked on child abuse and neglect. These organizations recognized that they serve many of the same families – given the frequent co-occurrence of these issues – and that combining the organizations could enable them to serve these families in a more coordinated and streamlined way. In addition, they recognized a unique opportunity to lead their entire community in better understanding and addressing the interconnectedness of violence that occurs within the family setting, thereby increasing their capacity to address the root causes.

While strategic restructuring is not always the answer, nonprofits facing unprecedented challenges to their business models would do well to consider it not just as a survival strategy, but as a vehicle for meeting – and even transforming – their mission in ways that open up new pathways to achieving social impact.

Tags: business models, Mergers, oakland eat bay symphony, oakland symphony chorus, oakland youth orchestra, partnerships, social impact, strategic restructuring, sustainability

This entry was posted on Wednesday, December 16th, 2009 at 4:37 pm and is filed under Blurring Sector Boundaries, NonprofitNext. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.