Collaboration, Partnerships, and Mergers Movie

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COLLABORATIONS, PARTNERSHIPS, AND MERGERS 2

Collaboration,Partnerships, and Mergers Movie

Collaboration,Partnerships, and Mergers Movie

Themovie Collaboration,Partnership, and Mergersby Steven R. Neihesel presents the importance of non–profitorganizations collaborating with for-profit and similar firms.Currently, non-profit companies need to find ways of enlarging andexpanding their current services. However, they lack the strength todo so due to limited resources. Therefore, to expand, the most viableoption is to build partnerships and collaborations with otherbusinesses. This is a clear way for them to enlarge and enrich themission that they serve.

Accordingto Neihsel, in today’s world, if non-profit organizations have toachieve their goals and mission, they have to merge, partner orcollaborate with others. Every non-profit firm strives to build itscapacity. Capacity building describes an organization’s strategicintention of expanding its current ability to create and deliversocial value. Neihsel adds that collaborations are key in achievingeffective capacity building. Collaboration, therefore, is athoughtful and intentional process of building alliances and networksof value through the organization’s external reach that assist itin building its capacity and enlarging its social value. Thealliances and networks formed in a collaborative process are notnecessarily permanent. Neihsel points out that these alliances couldbe built on a program by program basis or they could be short,medium, or long-term.

Neihselalso claims that in each collaboration, there are set goals. Inessence, he points out four main goals. Firstly, collaborations seekto enlarge social value. Different organizations bring together theirideas that create more than their parts they bring synergy. In sodoing, they try their best to better, deliver, and serve theirindividual missions while combining resources. Organizationalenlargement is the other key feature of collaborations. This is seenin terms of the organization`s ability to reach or serve more peoplein the community. It could also be perceived in reference to itsscope. This is where quality comes into play. Thus, an organization’sservices are measured according to their quality and not justquantity.

Neihseladds that there is also the part of the efficiency gain as a majorcomponent of collaboration. In this, companies are interested inexamining how operational resources can be expanded or refined. Hepurports that by coming together, organizations can share costs andprovide better services. Then, the other main aim of collaborationsis achieving economies of scale. Most non-profit organizations do nothave the resources to scale up. Therefore, when they collaborate withother organizations, they enlarge their financial impact. Notably,this does not only mean with other non-profit firms but also profitcompanies in the government sector. Specifically, this is known asfinancial leverage. They can partner with banks and otherorganizations, and this enables them to deliver on their missions andgoals. In the economies of scale, firms acquire ideas regardingsharing of staff both paid and volunteers in order to provideservices that are similar across the board. Then, the presenter addsthat in the economies of scale, knowledge is also increased. Whenorganizations come together, they can learn from each other, and thishelp in improving the delivery of services.

Accordingto Neihsel, non-profit organizations are keen when exploring the ideaof collaborations. Collaborations must be given a great thought.Companies engaging in collaborations must have a clear picture ofwhat they want to gain from this endeavor. Thus, for many ChiefExecutive Officers, before they can engage in any collaboration-partnership or merger, they have to develop an Alliance Portfolio.This is a very intensive exercise for the CEO and the board members.This exercise involves a lot of research about the potentialpartners. They must get to understand how they will benefit bycollaborating. Furthermore, they must understand what resources otherpartners will provide, which they lack. They also must spend timebuilding and maintaining relationships. Relationship building isimportant, and it is not just about getting resources. Theserelationships must be sustainable in order to use the resources well.

Moreover,Neihsel purports that to build partnerships and collaborations, afirm has to develop an alliance portfolio. He adds that non-profitorganizations need to know about their potential partners. The CEO’sand board members need to analyze the mission and vision fit for thepotential collaborative partners. Its importance cannot be overlookedbecause its lack could lead to differences when implementing the laiddown plans. After this, it is paramount to clarify the role of eachpartner. Additionally, it is important to understand what eachpartner will bring on the table in terms of resources, the time linesunder which these resources will be provided, and the expectations ofeach partner in order to integrate the core capabilities.

Neihseladds that it is necessary to clarify the core organizational andpartnership values of all the parties involved. There is a need tounderstand the values that are non-negotiable. This is not to meanthat all the organizations in the partnership must have similarvalues. It simply implies that each organization must have its corevalues, which must be protected in this partnership. Lastly,collaboration is an investment that must yield positive impact on itspartners. Every partnership must count. It is vital to remember thata lot of time and energy in building relationships and developingcollaborations is required. Therefore, the input of each and everypartner is necessary.

Tosum up, Neihsel presents rich information about mergers,partnerships, and collaborations in the movie. He points out that itis important for every non-profit organization to think carefully andcritically before engaging in a partnership. A lot of research andbackground check of a potential partner is necessary. According tohim, the partnership should benefit to all the parties involved. Itis also evident that the CEO’s and board members need to bediligent in considering any partnership. Neihsel believes that iforganizations would follow the required steps in buildingpartnerships, then they would gain from working in collaboration. Infact, it is evident that merging with other companies, especiallythose recording good performance in the market raises productivityand profitability. Thus, the film is a wake-up call for firms thatare known to shun mergers and partnerships due to the belief thatsuch collaborations would make them lose their identity and marketposition. They should not discriminate between non-profit or profitfirms when choosing the one to merge or partner. Indeed, they shouldconsider diversification and in so do doing learn from each other.The movie is also recommendable for organizations that have taken thestep to collaborate. They can get useful tips to enhance theiroperations such as relationship and capacity building.