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  • Strategic Restructuring: Mergers and Creative Alliances

    League of American Orchestras

    with

    Bob Harrington Partner

    5900 Hollis Street, Suite N Emeryville, CA 94608 www.lapiana.org

    June 19, 2013

  • Greater Autonomy Greater Integration

    Pro

    gra

    m

    Ad

    min

    istr

    ati

    on

    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

    The Partnership Matrix

    2 La Piana Consulting 2013

    Collaboration

    Change in Corporate Structure

    Collaboration Strategic Alliance Corporate Integration

    Strategic Restructuring

    Contract or MOU

    No permanent organizational commitment

    Decision-making power remains w/

    individual organizations

    Involves a commitment for the future

    Decision-making power is shared or transferred

    Is agreement-driven

    Involves changes to corporate control

    and/or structure, including creation and/or

    dissolution of one or more organizations

    Handout 1: The Partnership Matrix

  • Pursue New Opportunities

    Build Capacity

    Greater Community / Artistic Impact

    Greater Access to Funding

    Increase Efficiency and Reduce Costs

    3 La Piana Consulting 2013

    Why Do Nonprofits Consider Strategic Restructuring?

  • 86% 85% 83% 82% 82%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Improve quality ofservices/programs

    Maximize financialresources

    Expand range ofservices/programs

    Serve moreclients/audiences

    Improve programoutcomes

    Factors that best describe why this collaboration was formed *

    n = 644 *2010 Collaboration Prize database, the Lodestar Foundation

    Why Do Nonprofits Consider

    Collaboration?

  • Chattanooga Museums

    Tennessee Aquarium, Hunter Museum of American Art,

    and the Creative Discovery Museum

    Administrative Consolidation

    La Piana Consulting 2013 Case Study A

  • Oakland East Bay Symphony, Oakland Symphony Chorus, and

    Oakland Youth Orchestra

    Merger

    6 La Piana Consulting 2013

  • Sacramento Philharmonic & Sacramento Opera

    7 La Piana Consulting 2013

  • Key Success Factors

    Mission focus

    Flexibility in pursuing mission/growth

    Clarity regarding desired outcomes

    Positive relations with potential partners

    8 La Piana Consulting 2013

  • Roadblocks to Strategic Restructuring

    Autonomy concerns

    Lack of trust

    Self-interest

    Organizational culture

    9 La Piana Consulting 2013

  • Self-Assessment

    Motivators

    Desired outcomes

    Critical issues

    Organizational factors or red flags

    Financial assessment

    10 La Piana Consulting 2013

    10

  • Partner Assessment

    Level of trust

    Past experiences

    Usable skills and assets

    Cautions and challenges

    Mission and program compatibility and

    complementarities

    Financial condition

    11 La Piana Consulting 2013

  • The Negotiations Process

    12 La Piana Consulting 2013

    Corporation A

    Corporation B

    Joint Merger

    Negotiations

    Committee

    Pro

    ces

    s S

    tep

    s

    Identify Issues Due Diligence Process

    Negotiate all issues

    Record agreements

    Communicate progress to

    constituents

    Determine potential problems

    Disclose information

    Analyze

    Recommendation

    Corporation A

    Board of Directors

    Corporation B

    Reco

    mm

    enda

    tion

    Decision Merger

    Joint Legal Counsel

    Board of Directors

    Board of Directors Board of Directors

    Negotiations

    Committee

    Integration Joint

    Negotiation

    Committee

    Handout 2: The Negotiations Process

  • Three Legged Stool of Performing Arts

    Ad

    min

    istr

    ati

    ve

    Dir

    ecti

    on

  • Cultural Integration

    Intentional process

    Specific events, opportunities, times to reflect

    Respect the time needed to move through this

    process

    Maintain open two-way communication

    Celebrate small and large successes

    Resolve disagreements/problems immediately

    Determine communication and decision making style

    early

    Monitor internally and externally

    14 La Piana Consulting 2013

  • Trust

    Joint Decision-Making

    Shared Culture

    Board Engagement

    Good Facilitation and Process

    Sustainable Structure

    Key Success Factors

    15 La Piana Consulting 2013

  • Dayton Performing Arts Alliance

    16 La Piana Consulting 2013

  • Utah Symphony/Utah Opera

    17 La Piana Consulting 2013

  • Questions & Discussion

    18 La Piana Consulting 2013

  • Visit us online at www.lapiana.org or

    email Bob at harrington@lapiana.org

    Thank You!

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