International strategic alliances.

A defined strategic direction and process can be quite useful in identifying rewarding opportunities for your association when it comes to international partnerships. At the American Society for Quality (ASQ), Milwaukee, we have established a program that addresses such a methodology for forming collaborative partnerships with like-minded associations around the world. The WorldPartner program contains a self-assessment tool based on the Malcolm Baldrige National Quality Award, which we've adjusted for not-for-profit organizations. We ask potential partners to complete the self-assessment as a first step in determining the possibilities for a partnership with ASQ. Using a set of instructional guidelines that include a point scoring system, the organization's leadership scores activities in three general areas.

1. Leadership components, including

* board composition;

* strategic plan and objectives;

* participation in mission-advancing activities; and

* code of ethics.

2. Organization and activities, including

* staff;

* customer needs and requirements;

* organized activities; and

* responsiveness to the community.

3. Organizational outcomes, including

* membership progress;

* activity evolution;

* major references;

* member satisfaction and service performance; and

* financial performance.

INCLUDE YOUR OWN SELF-ASSESSMENT

As part of the application packet, ASQ performs its own selfassessment--using the same guidelines to uncover weaknesses, strengths, and opportunities. Our Global Cooperation Committee (a committee of the Office of the President) reviews the results of the two assessments, taking into consideration the potential synergy of a partnership before determining whether to deny the request or recommend it for approval by the board. During this process, staff from each association may develop a strategic plan of cooperation that identifies details of the opportunities for delivering value-added, mutually beneficial activities.

RECOGNIZE CHALLENGES AND CAPABILITIES

After establishing the ground rules for working together and a shared vision of a good working relationship, it's time to explore the challenges. We try to see potential alliance problems, both real and hypothetical, from myriad perspectives. Some authorities on relationship management recommend using a team approach for managing multiple relationships with the same partner. Having a team composed of staff representing the various functional areas supported by each partner greatly contributes to smoother processes and more readily contributes to resolution of problems.

ESTABLISH SUCCESS METRICS

Probably one of the most difficult tasks in alliance management is measuring success. How do we know that this relationship has been worth the effort? When do we know that it's time to celebrate our success? When do we know that we have issues needing resolution?

Here are some resources to help determine the outcomes of the partnership in a quantifiable manner:

* The Collaboration Challenge--How Nonprofits and Businesses Succeed Through Strategic Alliances, by James E. Austin (2000, Jossey-Bass Publishers).

* Everyone Is a Customer: A Proven Method for Measuring the Value of Every Relationship in the Era of Collaborative Business, by Jeffrey Shuman and Janice Twombly (2002, Dearborn Trade Publishing).

* The Association of Strategic Alliance Professionals Web site at www.strategic-alliances.org.

Clearly, working with organizations in other countries is a challenging undertaking. Setting strategic guidelines for the relationship can go a long way in selecting the right partners and achieving positive results.

Michael O'Donoghue holds a master's degree in business administration and is international markets development and strategic alliances manager, American Society for Quality, Milwaukee. He is also ASAE's 2003-2004 International Section Council chair E-mail: [e-mail].

Strategic restructuring involves significant change. Regardless of positive or negative outcomes, change causes fear and anxiety.

The cultural issues are often the most challenging. Strategic restructuring involves significant change. Regardless of positive or negative outcomes, change causes fear and anxiety. The leadership of the partnering organizations or new organization, in the case of a merger, should take time to address and resolve the people issues. Otherwise, these issues will detract from the organizations' ability to move forward.

In our work, we have observed a number of predictors of a smooth integration process:

* The presence of a champion, whether a staff or board member, who is a cheerleader for the process and helps motivate others.

* Leadership that is able to move quickly, making difficult decisions and keeping up the forward momentum.

* A focus on creating a new organization--honoring the past histories and cultures of the organizations and creating a new shared culture.

* Clear, honest, open, frequent, respectful, and two-way communication throughout the participating organizations.

* Celebration of success early on and on an ongoing basis.

* The presence of a facilitator to keep things on track.

* A comprehensive plan and an integration team to put things in place. For the Hearth, Patio, and Barbecue Association (HPBA), the most challenging part of the merger process was indeed the integration of cultures. BIA came to the merger with 85 members, a budget of $500,000, and no staff. In contrast, HPA had 2,500 members, a $5 million budget, and a 24-person staff. The lack of BIA staff did make the integration into HPA offices relatively easy; and former HPA staffers are adjusting to the expanded roles and responsibilities and are excited to learn about a new industry.

More difficult was the integration of the two boards. Used to having an independent board and full control of the agenda, BIA had to adjust to having only two board positions. To accommodate the need for the former BIA board members to have "something of their own," a separate Barbecue Manufacturers Caucus was established. While having its merits, this may have slowed down the integration process, because it reduced the need to actively participate on the merged board. Nearly two years into the merger process, Keithley sees former BIA leaders increasingly recognizing the need to more actively participate in the new board, join committees, and seek greater influence over the direction of the association-developments that he views as quite positive.

Outcomes assessment

Although the jury is still out on the results of the relatively recent mergers described in this article, early results are promising.

* Southwest Drycleaners Association, a year into the integration of the three affiliates, reports that this year's convention had the highest attendance ever and received high satisfaction marks from participants. The merged association now offers additional educational classes and seminars in a greater number of locations. In addition, SDA's executive director notes that although he predicted a steep drop in membership because of the economy, membership has remained relatively stable.

* HPBA's Keithley cites attendance at this year's trade show as a measure of success. It bit what he calls "a high-water mark" of 11,200 participants--a 15 percent increase over the previous year.

* CoreNet Global's membership has shown a net increase. While the two merging organizations each had approximately 4,000 members, with 20 percent of them belonging to both organizations, the current combined membership totals 7,500. Binzel, CoreNet's president, attributes much of that to increased member benefits funded by significant reductions in administrative costs.

In sum, strategic restructuring offers an effective means for increasing organizational effectiveness. The gains, particularly when it comes to mergers, however, do not come easily. Says Binzel, "However hard you think it's going to be, it will be three times harder. There are thousands of details. Deal with them, but always keep the bigger picture in mind--and know that in the end there is a new organization, one that is stronger and better able to serve members."

David La Piana is an author, consultant, and founder of La Piana Associates, Inc. (www.lapiana.org), a virtual consulting firm headquartered in the San Francisco Bay Area specializing in strategic solutions for nonprofit organizations. E-mail: [e-mail]. Michaela Hayes is a senior associate at the firm. E mail: [e-mail].