Organizational Leadership: Considerations for a Nonprofit Merger ~ Part 3

“No nonprofit organization can survive and succeed in advancing its mission while living independently of other nonprofits. Organizations gain information, political power, and personal and professional support from and in concert with other nonprofits. Thus, close working relationships, partnerships and even joint ventures between nonprofit organizations are a fairly natural occurrence.” ~ David La Piana

Organizational Leadership: Considerations for a Nonprofit Merger ~ © by James K. Lewis

CULTURE AND CONTEXT

In Cultivating Communities of Practice E. Wenger notes that multiple changes happen when companies are restructuring internal and external relationships in response to a shifting market (Wenger, McDermott and Snyder 2002, 6). Most nonprofits have such an idealistic view of themselves and their mission that they refuse to see the changing landscape around them. When they do recognize external issues threatening their existence, it is often too late. In a context of economic struggle or other negative external force, this protective culture serves to weaken rather than strengthen. Ken Berger warns that “All too often, self-preservation trumps mission” (Gose 2008).

Founder’s Trap
One self-preservation issue in declining organizations is the older founder-leader, or long-term executive and/or board members, clinging onto what “once was.” This can result in a loss of both innovation and the deterioration of the organization’s lifecycle; either stalling in what Adizes refers to as a "Founder’s Trap," or aging into "Aristocracy" or "Bureaucracy." * Today, it can be seen as reluctance to pass one’s mantle to the new generation of leaders. While it may be a founder-leader imagining he or she is being loyal to what they gave birth—or a board member who has invested personal wealth to keep the organization afloat—these leaders are actually displaying a character of blind and selfish ownership; this runs counter to steward leadership. Condon is unabashedly bold as he states that service organizations that were “started with fire and zeal settled into hidebound bureaucracies” (Condon 2009).

The steward leader must learn when it is best to let go and allow an organization to grow beyond his or her capabilities. It is often the organization itself that will provide the indication of a need to step away. However, a reluctance to release the reins of power and position may keep them hanging on until there remains no other option than a merger or acquisition . . . or death of the organization (Blackaby and Blackaby 2001, 257-259).

*- For a full discussion of Organizational Lifecycle please see: Adizes, Ichak. Managing Corporate Lifecycles. Santa Barbara: Adizes, 2004.