Abstract

Keywords: Nonprofit strategy, foundation strategy, nonprofit networks, collaborationIntroductionDespite high hopes, hard work, and significant investment, the social sector has experienced countless partnerships that have failed to live up to expectations. How are some collaborations able to achieve spectacular results while others fail spectacularly? This article introduces four key operating principles that build a culture for collaboration success.In developing these principles, we draw upon our own research and work with partnerships and networks. Jane Wei-Skillern (now on the faculty at UC Berkeley's Haas School of Business and Stanford Graduate School of Business) began her career studying nonprofit growth and became very aware of the many challenges to organizational scale as the primary path to mission impact. At the same time, she identified several examples of nonprofits that had dramatically increased their mission impact through a strategy of cultivating external networks rather than organizational level growth. She has since focused on studying leading edge networks and published several articles and HBS case studies on the topic. Nora Silver is on the faculty of UC Berkeley's Haas School of Business and Director of the Center for Nonprofit and Public Leadership. Before joining academia, she developed and supported a network of foundations and nonprofits to increase, strengthen and diversify volunteerism for 13 years. Her research is on multi-sector leadership and nonprofit networks. The four principles emerged from our collective experience.To illustrate the framework we use the case of the Energy Foundation (EF), a $100 million foundation that is among the largest philanthropic funders advancing clean-energy policy, as a prime example of a foundation that has successfully catalyzed networks. Although a leading funder in the sector, EF may be the largest foundation that most people have never heard of. This is entirely by design. To advance its network, EF routinely acts to build the field of energy philanthropy, though not necessarily EF as an institution. EF exemplifies those four principles.A rich literature on applying networks in the nonprofit sector has emerged in recent years (Plastrik & Taylor, 2006; Monitor Institute & GEO, 2011; Wei-Skillern, 2008), with research on network structures (Grossman & Rangan, 2001; Huggett, Kramer, & Smith Milway, 2010), systems (Kramer & Kania, 2011), and technological tools (Kanter & Fine, 2010; Scearce, Kasper, & McLeod, 2010). The leadership skills and culture that are essential to successful network building, however, are often overlooked. We maintain that these skills are the critical factors that differentiate failed or mediocre collaborations from those that achieve transformational change. Yet, the leadership mindset and skills critical to the success of networks are the opposite of what is typically rewarded in the philanthropic sector. Since the skills for successful networking are counterintuitive relative to common practice, they are worth highlighting here:Focus on mission before organization. Effective network leaders build strategies that advance the mission even when it does not result in direct benefits to their organization.Build partnerships based on trust, not control. Leaders depend upon shared values and trust rather than top-down controls and accountability systems.Promote others rather than yourself. Network leaders exhibit a strong norm of humility above all else, sharing credit and foregoing opportunities for individual advancement and institutional growth and brand building.Build constellations rather than lone stars. Leaders who catalyze successful networks acknowledge their weaknesses as readily as their strengths. The goal is to build the larger system that is necessary for delivering on the mission, not to become the market leader.Network leaders have succeeded often not because of, but despite, the contexts in which they operate. …

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