The Nonprofit Mergers Workbook Part II

Electronic Worksheets

The Nonprofit Mergers Workbook Part II

Unifying the Organization after a Merger

By La Piana Associates

Worksheet 1 Outcome Targets

List the “big-picture” outcomes your merging or newly merged organization aims to achieve through this merger. Use this list to measure your progress throughout the next weeks, months, and even years of organizational integration.

Note: The ten outcomes listed below are attributes of a healthy, strong, and well-integrated organization—the type of organization you seek to create through your merger integration process. These should be among the outcomes you list.

Some Common Outcome Targets

A cohesive governing body capable of leading the merged entity forward in a unified manner.
A single executive director who is supported by the board and staff.
A merged vision statement and mission statement expressed in a sound strategic plan that is supported by the entire organization.
A clear management structure representing the best skills of the pre-merger management teams.
An evolving, integrated organizational culture that staff feel connected to.
A sound, realistic budget and budget-monitoring system.
A unified human resources management system, including a single set of personnel policies and a unified and equitable compensation system.
A method for measuring the success and outcomes of the organization’s efforts.
A coordinated set of high-quality, effective programs aligned with the new organization’s mission.
A combined information system that meets management’s needs.

What other outcomes are you committed to achieving?

Worksheet 2 Evaluating Board Policies and Practices

Characteristic/Practice / Is this true for either or both pre-merger organizations?
(Yes/No) / Do we want it to be true for the merged organization?
(Yes/No) / Is this a priority issue? (Rank
A, B, C) /
Selection & Composition
The board is composed of persons vitally interested in the work of the organization.
The board is representative of the diverse community we serve (race, age, gender, sexual orientation, other?)
There is a balance of new and experienced board members to guarantee both continuity and new thinking.
Board members have the right combination of skills (fundraising, management, fiscal, legal) necessary to carry out the board’s work.
There is a limit to the number of consecutive terms a member can serve (no life terms).
The organization has a pool of potential board members identified for future service.
The organization develops future board members through the use of volunteers on committees.
There is space on the board for new board members to join the newly merged organization.
Orientation & Training
There is a statement of agreement outlining the duties and responsibilities of board members that all board members sign.
The board understands its legal liability.
The organization supplies a board manual to all board members that includes, but isn’t limited to, descriptions of current programs, a list of board members, budget and funding information, bylaws, and personnel policies.
The organization makes certain that all board members understand the conflict of interest policy and confidentiality statement (if applicable).
The organization makes training opportunities available to board members to increase skills related to their board responsibilities.
The organization provides an orientation for new board members.
There is a plan to expose board members to the range of programs, activities, sites, and services of the newly merged organization.
The board has a mentoring or other similar process to help new board members get to know the ropes and understand how to fit in.
Structure & Organization of the Board
The board has a simple, concise set of bylaws that describes the duties of board members and officers, as well as the procedures by which the board conducts its business.
The board has a mechanism (such as an executive committee) for handling matters that must be addressed between meetings.
The board elects a chairperson to provide leadership and coordinate the ongoing work of the board and its committees.
The board has the appropriate active committees (for example, fundraising, personnel, nominating/board development, long-range planning) with specific assignments and responsibilities.
Committee assignments are reviewed and evaluated periodically.
Working relations between the board chair and the executive director are strong and productive.
Board and staff members are clear about their respective duties and responsibilities.
Working relations between the staff and board are characterized by mutual respect and rapport.
The Board at Work
There are regularly scheduled board meetings at least four times a year.
Meetings begin and end on time per an agreed-on schedule.
There is adequate preparation and distribution of material including agendas and study documents in advance of board meetings.
Board meetings are characterized by open discussion, creative thinking, and active participation by all.
Board meetings deal primarily with policy formulation; program, financial, and long-range planning; financial review; and evaluating the work of the organization.
Minutes of board and committee meetings are written and circulated to the members.
Committees are active and complete assigned tasks in a timely manner.
The board is aware of matters of community, state, and nationwide concern within our field of advocacy.
Individual members of the board accept and carry out assignments within the area of their talents, expertise, and/or interest.
Board members make a generous financial contribution (self-defined) to the organization on an annual basis.
All board members are involved in some aspect of fundraising for the organization.
The board conducts an annual review of its own organization and work.
New leadership is emerging consistently from the board and its committees.

Worksheet 3 Cultural Audit Survey

Distribute this survey to staff, volunteers, board members, and other key constituents from each of the merging organizations. Follow up with a few focus groups and a limited number of interviews with long-term members of each organizational community. Collect and compile the results from each of these processes, and use them to initiate a series of discussions on the culture you want in the merged organization.

To build a new organization, it is important to better understand the cultures of the organizations that are merging. Describe your own experience of the following factors in your organization’s culture before the merger. This information will be used anonymously to assemble a picture of what people valued most about their organizations going into the merger.

Name of (pre-merger) organization:

Heroes: Who are the organization’s founders, supporters, and advocates; those people who have shaped the organization through their own contributions, vision, and leadership?

Values: What values, beliefs, traits, and qualities does the organization hold most dear?

Verses: What “words of wisdom” or quotes relay a sense of the organization’s values, or of how things really work in the organization?

Traditions: What recurring events or activities bring people in the organization together? Which of these do you appreciate the most?

Turmoil: What conflicts or issues have polarized or confused the organization over the years?

Stories: What incidents or events are especially significant to the organization?

Victories: What are some of the organization’s finest moments? What successes and achievements are people in the organization most proud of?

Losses: What prominent failures or events caused people in the organization to experience grief together?

Self-perception: What is the “identity” of the organization? As a group, how do members of the organization perceive it?

Worksheet 4 Managerial Culture Index

Incompatible managerial cultures can hinder a merger. Clarity about managerial culture will lead to less conflict and a more intentional creation of a new way to manage and lead.

Rate the managerial culture of your pre-merger organization on the following scales. Then, along with the executive director of the newly merged entity and other members of the management team, discuss what the team would like the managerial culture of the merged organization to be, and what types of actions and structures would support that culture. A key outcome of this process is to create a managerial mindset that is both intentional and appropriate to the organization.

Emphasis on results Emphasis on methods

1 2 3 4 5 6 7 8 9 10

Information is shared Information is withheld

1 2 3 4 5 6 7 8 9 10

Affirmation is explicit Affirmation is implicit

1 2 3 4 5 6 7 8 9 10

Correction is for education Correction is punitive

1 2 3 4 5 6 7 8 9 10

Connections are clear and integrated Functions tend to be independent

1 2 3 4 5 6 7 8 9 10

Learning is integrated into the work Learning is spontaneous

1 2 3 4 5 6 7 8 9 10

Communication is valued and encouraged Communication is haphazard

1 2 3 4 5 6 7 8 9 10

Accountability is valued Creativity and initiative are valued

1 2 3 4 5 6 7 8 9 10

Management views impact Management views intention

1 2 3 4 5 6 7 8 9 10

Diversity of opinion is valued Conformance with the group is valued

1 2 3 4 5 6 7 8 9 10

From The Nonprofit Mergers Workbook Part II: Unifying the Organization after a Merger by La Piana Associates.

Copyright © 2004, La Piana Associates.
If you have any questions about the use of the human resources contact Bill Coy at or 510-325-1900.
Published by Fieldstone Alliance, www.FieldstoneAlliance.org. All rights reserved.

Worksheet 5 Planning for the Announcement

Listed below are the key stakeholders for a typical organization. For each group, identify the stakeholders’ information interests and needs, potential concerns and questions, who will contact them about the merger decision, how they will be contacted, when they will be contacted, what information they will be given, and what supplementary materials (if any) they will receive. The people responsible for contacting the stakeholder should also be responsible for capturing any questions and concerns that come up, documenting these, and channeling them back to the integration team for evaluation and response.

Stakeholder / Information interests /needs / Specific concerns/ questions / Who will contact?
Key stakeholders should be contacted by board member or executive director / How contacted?
In-person contact is preferred; telephone is next best option / When?
Board first, then management, then staff before all others / What information?
What messages? /
Management
Staff
Volunteers
Clients /customers
Funders /donors
Community leaders
Members of the press
Collaborators /partners
Government agencies
Other:
Other:
Other:
Other:

From The Nonprofit Mergers Workbook Part II: Unifying the Organization after a Merger by La Piana Associates.

Worksheet 6 Guiding Principles for Communication

What guiding principles will the new organization adopt for communication during the integration process, and beyond? Use the information in Chapter 5 to help you think through your priorities.

Some examples might be “All communications will be courteous and respectful.” “Any staffing changes will be communicated to staff prior to external parties.” “Communication will be collaborative.” “Sharing of information will be encouraged.” “People will have the information they need to get their jobs done and to make informed decisions.”

Write your organization’s guiding principles below. Make your list concise, concrete, and manageable; ideally, you will identify no more than ten principles.

From The Nonprofit Mergers Workbook Part II: Unifying the Organization after a Merger by La Piana Associates.

Worksheet 7 Talking Points

Listed below are important talking points for a newly merged organization. Record your responses in the spaces provided, and then work on refining them. Be both honest and enthusiastic in your answers—the talking points are an ideal place to convey the excitement and promise of your merger.

Lead statement:

The rationale for the merger or (brief) case statement:

The vision and mission of the merged organization:

The value each merging organization brings to the table:

The population served by the new organization:

How the community will benefit from the merger:

The strengths of the new organization:

The changes that are anticipated (to the extent they are known):

How changes will be handled (in accordance with guiding principles):

What will not change (to the extent that this is known):

When further decisions will be made:

Whom to contact (where to go) for more information:

Name:

Title:

Phone number:

E-mail address:

Web site:

From The Nonprofit Mergers Workbook Part II: Unifying the Organization after a Merger by La Piana Associates.

Worksheet 8 Feedback Mechanisms

How will you obtain feedback regarding the effectiveness of the integration progress, and the concerns or questions that your various stakeholders might still have? For each stakeholder group in the chart below, indicate how you will learn of their questions, comments, and concerns. Indicate how often you will solicit feedback from each group, and who will be responsible for collecting that feedback and reporting it back to the integration team.

Stakeholder / Method(s) of Collecting Feedback
(surveys, focus groups, one-on-one or group meetings, telephone “hotline,” telephone calls, e-mail communication, chat rooms, electronic bulletin boards, suggestion boxes, etc.) / Frequency of Collection / Responsible Person
Board members
Management
Staff
Volunteers
Clients and customers
Funders and donors
Community
leaders
Members of
the press
Collaborators
Government
agencies
Others (define)

From The Nonprofit Mergers Workbook Part II: Unifying the Organization after a Merger by La Piana Associates.