1. Organizational Effectiveness Initiative Strategic Restructuring 101: Partnerships, Collaboration, and Mergers Presenting: Joann Ricci VP for Organizational Effectiveness Featuring: Jo DeBolt Partner

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4. Submitting a Question  Your question will be sent to Julia, who will either add it to the queue (in which case it will be taken in the order it was received) or addressed after the webinar. 4La Piana Consulting © 2012

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6. Today’s Speakers: Joann Ricci, VP of Organizational Effectiveness Greater New Orleans Foundation Contact: joann@gnof.org or www.gnof.org Joann develops, designs, and leads programs and learning activities to help build and strengthen the capacity and effectiveness of the area’s nonprofits to more successfully meet their missions. Joann is also responsible for increasing the effectiveness of the Foundation’s programmatic and grantmaking work through evaluation, implementation of promising practices, networking, and strategy development.www.gnof.org Jo DeBolt, Partner of La Piana Consulting Contact: debolt@lapiana.org or www.lapiana.org Jo brings nearly 30 years of experience as a nonprofit executive and consultant to the firm. As a consultant and nonprofit leader, much of Jo’s work involved starting and growing organizations including designing and developing systems, building boards and staff, implementing new programs, translating vision into action, and ensuring that mechanisms were in place to measure the impact of these new ventures. www.lapiana.org La Piana Consulting © 20116

7. Agenda  What is Strategic Restructuring?  Considering Restructuring  National Landscape  Getting Started  Case Studies 7La Piana Consulting © 2012

8. What is Strategic Restructuring? 8La Piana Consulting © 2012

9. The Partnership Matrix Greater Autonomy Greater Integration Program Administration Administrative Consolidation Joint Programming  Single focus or program  Multi-focus or program  Integrated system  Contracting for services  Exchanging services  Sharing services  Information sharing  Program coordination  Joint planning Collaboration Management Services Organization Parent/Subsidiary Corporation Corporate Merger/ Acquisition Joint Venture Corporation 9La Piana Consulting © 2012

10. Poll Have you seen examples of strategic partnerships in your community? 47% of listeners said YES 16% of listeners said NO

11. Considering Restructuring

12. Mission comes first. Finances follow.

13. Economic Pressure

14. Leadership Transition

15. Stronger Place in Your Field

16. Poll Are you experiencing… Economic Pressure – 69% said Yes Leadership Transition – 43% said Yes Competitive Challenges – 52% said Yes Growth Opportunities – 80% said Yes

17. National Landscape La Piana Consulting © 2012

18. 18 Strategic Partnership by Type Joint Programming Merger Joint Programming and Administrative Consolidation Administrative Consolidation Not specified Other (coalitions, confederations, etc.)

19. Strategic Partnerships by Focus Area Source: Lodestar Foundation / Foundation Center 19

20. Why Do Nonprofits Consider Collaboration? 20

21. Getting Started

22. The Decision Tree 22 We seek the following ends: We hope to achieve specific, significant, but limited programmatic ends. We wish to remain an independent organization and to achieve these ends by working within our existing organization Consider joint programming Or if… We hope to reduce administrative costs and increase administrative efficiency. We wish to remain an independent organization and to achieve these ends by working within our existing organization Consider administrative consolidation If we seek even greater integration… We wish to increase our administrative efficiency on a large scale by creating a separate business that can provide services to multiple organizations. Consider creating a management service organization Or if… We wish to achieve specific and significant programmatic ends by creating a separate entity to fulfill a programmatic purpose. Consider creating a joint venture corporation If we seek even greater integration... We hope to achieve synergistic gains in our ability to achieve our mission by integrating our organizations and our corporate structures. Consider a parent/subsidiary structure or a merger

23. The Strategic Restructuring Process Assessment Resolution Assessment Agreement Negotiation Legal Resolution Integration Implementation 23La Piana Consulting © 2012

24. Look Inward

25. Find a Partner

26. Identifying Organizational Matches  Organizations with similarities and differences in…  Mission and vision  Constituents served  Types of programs  Funding sources  Strengths and weaknesses 26La Piana Consulting © 2012 My Organization Organization B Organization A

27. Prepare for Negotiations or Design

28. Next Steps

29. The Strategic Restructuring Process Negotiation Resolution Assessment Agreement Negotiation Legal Resolution Integration Implementation 29La Piana Consulting © 2012

30. Corporation B Board of Directors Due Diligence  Determine potential problem  Disclose information  Analyze Negotiations Committee Integration Identify Issues  Negotiate financial and legal issues  Record agreements  Communicate progress to constituents Decision Process Corporation B Board of Directors Corporation A Board of Directors Corporation A Board of Directors Joint Legal Counsel The Negotiations Process 30

31. Financial Impact and Analysis  Financial Comparison  Human Resource Comparison  Budget Development  Projection for combined budget  Cost/savings analysis  Donor Comparison 31La Piana Consulting © 2012

32. Understanding Trust 32 Reliability Openness Integrity CompetenceBenevolence

33. Questions 33La Piana Consulting © 2012

34. Case Studies

35. Chattanooga Museums Case Study: Administrative Consolidation http://lapiana.org/strategic-restructuring/research-and-workbooks

36. Ready Set Parent! Case Study: Joint Programming http://lapiana.org/strategic-restructuring/research-and-workbooks

37. Crittenton Women’s Union Case Study: Merger http://lapiana.org/strategic-restructuring/research-and-workbooks

38. Questions 38La Piana Consulting © 2012

39. More information and resources at www.gnof.org or www.lapiana.org www.gnof.org www.lapiana.org Email Jo at debolt@lapiana.org debolt@lapiana.org Email Joann at joann@gnof.org joann@gnof.org Join the conversation! Thank You

40. Thank you for participating in today’s webinar. Please watch for an email from GoToMeeting/Citrix for a follow-up survey of what you learned and an email from GNOF with this PowerPoint presentation & audio recording. Next Steps La Piana Consulting © 2012