Merging Organizations

I spent the morning thinking about merging non profits - when the right time is, how to best facilitate the processes and who should think about doing it. Here are some notes from this morning and 'Non Profit Mergers: Is Your Organization Ready for the Road?' by David La Piana.

My biggest rant on making a decision to merge and following through on processes comes down to one thing. Merging is all about sharing all of the info about your organization. Have some skeletons in the closet? Be ready to defend them, be ready to address them, be ready to be asked about them. Both organizations need to pay CLOSE attention to due dilligence issues; financial especially. In the sector we keep hearing one thing. be transparent - it is key to understand that transparency of the good the bad and the uglies are all important during merge converstations.

La Piana wants organizations to ask some key questions:
* Why does your organization want to merge? Finances? Better access to resources? Ability to serve the community better?
* Can your organization write out some clear outcomes that create some direction as the organization moves through the merging process? If you write them down in the beginning it will be easier to evaluate the process at the end.
* Can your organization speak with one voice about the merge - if there are problems internally within the org., can these problems be resolved? Talked about honestly? The board and the staff should come to the table with a solid front - even if there is disagreement, those disagreements need to be addressed and possibly put aside before the two organizations sit at the table.
* Are the organization's missions strategically aligned?

My thoughts on the issue from both what I have read and what I have experienced (having gone through a failed merger) is that one of the most KEY components is to have an outside facilitator that can objectively oversee the process and work to ensure that neither organization feels like it is being hostilely taken over or victimized. When organizations merge - there can be a precieved or real power imbalance. A mediator/facilitator can deal directly with these issues from the word go to make an already bumpy process just a little bit smoother.

Remember - the point of merging is to serve your clients/stakeholders more efficiently or effectively - not to keep your organization's brand, name or ego intact. It is a hard job to take ego out of the equation. Questions that need to be addressed are HR issues, who will be the new Executive Director, should you hire from outside both organizations for a new ED?
Do you need to merge? Or would it be more appropriate to shut the organization down and give your client files and most experienced staff to the other organization?

Big questions. The point here is that in order to set up for a merge process, there is alot of work and honest communication that needs to be done on the front end - what is the relationship between your staff and senior management? How cohesive can the organization be in standing together during a merge? WHY is a merge a positive step? What are the intended desired outcomes? Often a honest conversation within the organization’s staff and board will clarify underlying issue to help the organization to move forward.
I will be posting merge/acquisition articles for anyone's interest
Have a lovely day!