What we have learned from chapters

MADS 6628

Agenda • Chapter 3

Chapter 3

Making the Connection  The process of locating, attracting, and bonding

with cross-sector alliance partners

Ways to Search for an Alliance Partner

1. Alliance Marketplace

2. Happenstance / Serendipity

3. Systematic Search

4. Market Makers

Ways to Search for an Alliance Partner

1. Alliance Marketplace  Place or space for prospective cross-sector partners to meet

 Some communities have initiated forums. I.e.

 https://www.facebook.com/events/138283959944480/

 http://harrisonpensa.com/events/london-community-collaboration-

forum-power-potential-cross-sector-collaboration-sept-19

Ways to Search for an Alliance Partner

2. Happenstance or Serendipity

Need to “spot” potential partners &

opportunities

Need to be aware of other organizations’

mandates, distribution channels, new ventures

Ways to Search for an Alliance Partner

3. Systematic Search

Proactive investigation of potential partners

 NGOs research publications for corporations that:

 are socially responsible

 have formed other cross-sector alliances

 have similar mandates

 http://www.corporateknights.com/magazines/2017-global-100-issue/2017-global-100-results-

14846083/

 http://www.macleans.ca/economy/business/canadas-top-50-most-socially-responsible-

companies/

3. Systematic Search

Proactive investigation of potential partners

Corporations also search for partners based on:  social sector interest

 industry / market potential

 geography

 employee interest

 scope (international vs. regional)

 https://partners.ngonorway.org/search.phphttp://www.ngo- monitor.org/ngos/acat-long-chretienne-contre-la-torture-et-la-peine-de-mort/

Ways to Search for an Alliance Partner

4. Market Makers  Public relations, advertising, and corporate communications firms

engaged in “cause related marketing”. I.e.

 Frankel & Co. and VISA won award for a children's literacy program,

''Read Me a Story”

 Quaker State Oil, AARP Association, and WalMart “Drive to end

hunger”

 For more examples see: https://www.selfishgiving.com/blog/ten-best-

cause-marketing-promotions-2016

Example of a

NGO-based Market Maker

Community Wealth Ventures, Inc

 A For-profit subsidiary of a Non-profit: “Share our Strength” (to fight hunger)

 Provides advice on partnering for other NGOs based on its own experience

 Offers advice on “Community Wealth Opportunities”:

Will be discussed in more detail after the midterm exam

http://community-wealth.org/

Making the Connection:

Getting Acquainted  Read the chemistry / compatibility

 Authentic dialogue vs. “sales pitch”

 Shared interests

 Positive interactions

 Openness and attentiveness to each other’s needs

 A desire to “do business” together

 Do Your Due Diligence

 Establish if potential partner has:

 Credibility / legitimacy

 Positive reputation

 Similar markets / strategies

Making the Connection:

Getting Acquainted  Assess the “Mind-set” Barrier

 Beware of biases and stereotyping. I.e.

 Green Peace is made up of “tree huggers”

 Seal hunters are barbarians

 Corporations are greedy

 Oil companies are polluters

 Are you open to new ways of operating. I.e.

 Lease or share vs. Buy resources?

 Weekend meetings vs. 9 to 5?

 Allowing “outsiders” on your board?

CARE’s 5 step framework for

selecting a partner:

1. Verify the facts (known and unknown)

2. Identify the stakeholders and their stakes

3. Clarify the legal, financial, management, and moral issues

4. Evaluate all of the options for action

5. Resolve to take action on the best option

Making the Connection:

Engaging Top Leadership

 Do you have support of top leadership?:

 indicates high level of strategic importance to employees and

partner

 increases organizational acceptance

 Champions increase survival rate

 They have the energy and charisma to influence

followers

Making the Connection:

Creating Personal

Connections

and Relationships

 Emotional connection

 Glue that binds the organizations together

 Builds trust

 Can be due to history or present-day relationships

 Deepens over time and exposure to partnership

 Encourage employee involvement!

Screening Criteria to

Assess Partnership Potential

Ease of

Implementation

• Complexity of the

project

• Available skills and

resources to

manage the

opportunity

• Access to human

resources

• Ability to finance

Revenue Potential

• Market demand

• Level of

competition

• Quality of product

• Expected growth

• Cost structure

Strategic Fit

• Fit with Assets

• Fit with mission

• Fit with internal

structure

• Potential for

competitive

advantage