Source 8: Advantages and Barriers of Strategic Alliances
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Source 8: Advantages and Barriers of Strategic Alliances

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Advantages

  • Provides a competitive edge to grant proposals
  • Provides shared expertise, more clout, and a greater range of knowledge
  • Improves efficiency, productivity, and financial stability
  • Opens the door to new funding opportunities
  • Increases program visibility, credibility, and prestige
  • Ignites a spirit of innovation
  • Offers clients better quality and a wider range of services
  • Merges service and administrative functions to save costs and lower overhead
  • Reduces consumer confusion
  • Increases market share and reduces competition
  • Builds opportunities for fundraising, marketing alliances, and program development
  • Creates networks that are attractive to large customers and partners
  • Promotes information sharing and networking
  • Leverages collective thinking, problem solving, and advocacy
  • Improves service coordination, identifies delivery gaps, and reduces fragmentation and duplication of services
  • Provides an avenue to refer clients to services that your organization may want or need to discontinue and vice versa
  • Creates purchasing coalitions that increase buying power and volume
  • Reduces competition for scarce resources

Barriers

  • Fear that collaboration will lead to future mergers or takeover
  • Risk that one partner will abruptly change priorities, strategies, or leadership, causing the alliance to falter
  • Risk of sharing proprietary information
  • Fear of losing an organization’s unique community identity or autonomy
  • Turf issues and ego
  • Resistance to change
  • Distrust of ownership and control issues
  • Fear of job loss
  • Fear of undisclosed agendas
  • Staff turnover
  • Legal liability
  • Reduced sense of closeness and community within an agency
  • Risk that funders will encourage consolidation to the point that mega agencies are less likely be able to serve diverse needs in the community
  • Risk that partner does not live up to promises and agreements
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