Category: Change Management
As you’ve probably heard, Greenlights has recently gone through an exciting merger with Innovation+. We also continue to consult with organizations pursuing merger, and recently published a qualitative study of nonprofit mergers in Central Texas. Given all this, I was interested to read in, Why Nonprofit Mergers Continue to Lag, that despite new resources and funding for mergers, the actual merger rate continues to remain flat. While there is still much progress to be made, the authors did point to some encouraging news that nonprofits are beginning to see mergers and acquisitions as a proactive growth strategy, and not simply a “route out of financial distress”. One major sign: In a series of recent surveys with nonprofit executives, Bridgespan Group found that 20% of all nonprofits had considered merger as a part of their strategy.
Here at Greenlights, we too think it makes a lot of sense for organizations to periodically consider if pursuing a merger or other form of collaborative partnership makes good strategic sense. (continue reading…)
Losing weight, quitting smoking, and being a better spouse/child/parent are typical New Year’s resolutions for your personal life, but have you stopped to make some commitments to your professional life and organization for 2014 yet?
In a recent interview with Dan McGinn at the Harvard Business Review, Adam Bryant observed “culture drives results.” Why should we care what Adam Bryant says? Because he writes The Corner Office for the New York Times based on his interviews with chief executives for about leadership and management. And because his newest book, Quick and Nimble, links innovation with high-performing organizational cultures.
‘Tis the season for performance evaluations. Here are 5 things to consider before you deck the employees.
It’s the most wonderful time of the year. Services have been delivered. Program metrics are being tallied. The board is getting ready to approve the 2014 budget. Time for employees and supervisors to share just how naughty and nice they’ve been.
As you fill in your self-evaluation, 360, and employee assessments to prepare for these reviews, think about how you can make the experience (even of delivering difficult feedback) a positive one. (continue reading…)
Greenlights recently released the report, Nonprofit Mergers: A Strategic Tool for Impact & Sustainability which offers in-depth insights into the nonprofit merger process. Leaders from twelve merged Central Texas organizations shared their experiences with us, including what lead them to initially explore merger, their successes, challenges, and ultimate outcomes.
So what did we learn?
We found the majority of nonprofits pursued merger as a way to strengthen their organization’s impact in the community by serving more people or increasing their effectiveness. For example, when United Cerebral Palsy of Texas began merger negotiations with Easter Seals of Central Texas, they realized that each organization offered a unique complement of services to clients. They were confident that as a merged organization they could provide a greater continuum of care to individuals and families in the community. (continue reading…)
The last several years have seen a growing number of nonprofits pursuing mergers and other forms of formalized, strategic restructuring and alliance-building. In our opinion, this is generally a good thing, especially in a community like Central Texas where we retain the title of having more 501(c)(3) public charity nonprofits per capita than any other city in Texas and the southwestern USA (see new Greenlights data summary). Greenlights has also recently interviewed nearly all of the nonprofits in this community who have completed a merger, and we learned several things (most of which we will be publishing later this summer in a new research report).
But at a high level, we’ve learned that mergers can help nonprofits grow their services and impact, achieve the kind of operating scale that tends to promote long-term nonprofit sustainability, and solve very specific (often chronic) problems such as being under-capitalized.
We’ve also learned that mergers are not easy, are not for everyone, can have significant costs to complete, are often are not fully understood by most nonprofits and their boards.
There are many reasons that a nonprofit is thinks about a potential merger, but I thought I’d share some reasons that should not factor heavily into your merger considerations: (continue reading…)