When it comes to the creation of value, not
all collaborations are equal, as the Collaborative Value Creation (CVC)
Framework reveals. The framework helps us understand how value creation can
change as the partnering relationship evolves through the four stages of the
Collaboration Continuum: philanthropic, transactional, integrative,
and transformational (Renz 2016). The increased potential for value at
each stage coincides with changes in three drivers of value: alignment, engagement, and leverage (Renz).
The philanthropic stage is the most common and traditional type of
relationship (Austin 2003). The
Timberland-City Year relationship started this way in 1989 when the youth
service organization requested and received a
donation of 50 pairs of boots from Timberland. Given the shared goal of
community service, the relationship evolved into the
transactional
stage where Timberland employees were mobilized to participate with City
Year in community service events. Key benefits of the synergism between the partner’s resources
were increased business and visibility. In
1994, the collaboration evolved into a strategic
alliance that included integration
of the vision and values of both companies and the formation of a joint
enterprise to create the City Year Gear product line of apparel and gear. In
this integrative
stage, the missions, strategies, organizations, and resources merged,
and the collaboration took on the characteristics of a joint venture (Austin). While integration has much greater strategic value, it is more complex to manage than other forms of
collaboration (Renz). In this case, an added complexity was the potential
conflict of interest of the CEO of Timberland serving as the chair of
the non-profit’s Board of Directors. Yet, the multifaceted
form of engagement in this
partnership points to a deeper commitment that will help to sustain the
collaboration through challenges (Renz), including the financial setbacks that
both entities experienced in 1994.
While geared toward the
nonprofit-business relationship, the Collaboration Continuum can also provide
insights about the generation of value in nonprofit-nonprofit and
nonprofit-government collaborations.
The Seattle Art Museum-Housing First relationship, for example,
was a nonprofit-nonprofit transactional collaboration. The
organizations determined there was mutual benefit in cooperating on the “Citizens
for a Better Seattle” capital campaign, rather than compete for project votes
at the ballot box. The strategic importance of this relationship is limited to alignment on a single activity, though considerable value was derived from
the ability to leverage available resources
and assets. Increasing the strategic value of the partnership is hampered by mind-set of the partners, namely the lack
of trust among housing advocates for their museum partners.
On
the nonprofit-government front, La
Alianza Hispana, a “self-help alliance for Hispanics” is confronted with a
take-it-or-leave-it contractual proposition from the Massachusetts Department of Social Services (DSS). Namely, the current
transactional
collaboration around the provision of “soft” services, would be replaced with a
higher dollar value collaboration around the delivery child protection and case
management services. In this case, an examination of value drivers points to
the conclusion that La Alianza would be well advised not to enter into the
proposed collaboration due to a lack of
alignment on mission and lack of resources.
While these challenges could potentially be overcome, we are told that DSS is
limited in its ability to help La Alianza measure up to contractual expectations
and that the DSS' proposed rate would not adequately cover legal and other
overhead expenses.
In
summary, it is useful to consider how the stages in the Collaboration Continuum exhibit differences in strategic value, engagement
level, importance to mission, and resource
deployment (Austin). The organization’s stance on these strategic aspects
can provide an important guide in organizational decision-making relative to
the current and potential value of a collaborative relationship.
References
Renz,
David O. The Jossey-Bass Handbook of Nonprofit Leadership and Management
(Essential Texts for Nonprofit and Public Leadership and Management) 4th
edition, 2016.
Austin,
J. (Summer 2003). Strategic Alliances: Managing the collaboration portfolio. Stanford Social Innovation Review.
Retrieved from: https://ssir.org/articles/entry/strategic_alliances
