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Section Four: Collaboration with Other
Philanthropies
Partnership Among National Foundations
Between Rhetoric and Reality
By
Stephen L. Isaacs and John H. Rodgers
Editors'
Introduction
| A frequent question
asked of Foundation staff members is, "How often
do you collaborate with other philanthropies?"
It seems that people outside philanthropy think that
collaboration is a natural event, that there is a
tight fraternity of philanthropies that want to work
together on common problems.
In fact, as described in this
chapter, collaboration among philanthropies is not
so natural, and occurs less frequently than might
be expected. Co-authored by Stephen Isaacs, who has
written extensively on philanthropy over the past
five years, and John Rodgers, a researcher at Health
Policy Associates, the chapter examines partnerships
involving national foundations generally and The Robert
Wood Johnson Foundation specifically. It explores
the theoretical and practical reasons that collaboration
among foundations should make sense, why it does not
happen frequently, and what elements should be in
place for partnerships among national foundations
to succeed. As such, the chapter should interest both
policy makers and a general audience, including readers
who want to understand how foundations operate.
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Illustrating the discussion is a case
study of a collaboration currently under way—the Turning
Point Program—between The Robert Wood Johnson Foundation
and the W. K. Kellogg Foundation. Turning Point seeks
to strengthen the public health infrastructure in
states and localities across the country. The authors
take a hard look at the pitfalls and the potential
payoffs associated with the partnership. They chronicle
the efforts of the two foundations to attain the program’s
goals, but the end of the story will have to be told
in a future Anthology chapter.
The fast growth of technology
companies and the tremendous economic expansion of
the 1990s increased the ranks of philanthropies in
America, and the issue of collaboration will likely
become more important than ever. This chapter offers
a useful primer on how partnerships can work and when
they are likely to be worth the great effort they
involve.
J. R. K. |
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Chapter 10
Partnership among national
foundations is one of those values that are preached far more
than they are practiced. Like most national philanthropies,
The Robert Wood Johnson Foundation does not have a strong
record of collaboration. While the idea of collaboration among
like-minded foundations has obvious appeal, the difficulty
of forging and maintaining partnerships poses nearly insurmountable
barriers and helps explain why there is so little tradition
of it among national foundations. Ironically, many national
foundations insist that local organizations collaborate as
a condition of applying for grants, while they themselves
are unable to forge such alliances on a regular basis. Understanding
the dynamics behind partnerships among national foundations
and examining the experience of The Robert Wood Johnson Foundation
might contribute to closing the gap between rhetoric and reality.
Why Seek Partnerships?
There are many sound reasons
that partnerships are theoretically attractive to foundations.
A shared effort among foundations can signal the importance
of addressing a specific problem—thereby increasing its visibility
nationally and giving it a better chance of capturing the
attention of the media and policy makers. Other organizations
sensing the momentum may choose to lend assistance, join the
collaboration, or make grants in the area. When The Robert
Wood Johnson Foundation and the W.K. Kellogg Foundation decided
to work together to strengthen public health systems through
the Turning Point Program, their collaboration sent a message
to the field that public health was, and should be,
a priority.
Partnerships can increase
the financial resources directed to addressing a problem.
In the 1970s and 1980s, under the impetus of the Ford Foundation,
community development corporations in inner cities grew in
numbers and sophistication as a way to overcome housing shortages
for the poor and to incubate economic development. Seizing
an opportunity to expand the reach of these community development
corporations, the Rockefeller Foundation spurred the development
in 1991 of the National Community Development Initiative,
or NCDI, which is cofunded by a consortium of foundations
and corporations, along with the Department of Housing and
Urban Development. Because the NCDI was concerned with housing,
not health care, The Robert Wood Johnson Foundation initially
chose not to participate; it later joined when NCDI’s mission
was expanded to include the delivery of health services. Working
through two intermediary organizations—the Local Initiatives
Support Corporation and the Enterprise Foundation—NCDI makes
grants and low-interest loans to spur community development
in urban areas. In three rounds of funding, NCDI has received
financial commitments of $254 million.1
When coupled with financial resources committed
by over 250 local partners, this support is expected to yield
$2 billion in community revitalization funding.
Partnerships can also spread
the risk of funding innovative and potentially controversial
new projects. Although the security of their assets coupled
with the relative independence of board and staff should give
foundations the courage to strike out on bold programming
paths, the truth is that many foundations are timid; they
do not like to have the nature of their investments criticized.
Funding in AIDS and sex are good examples. In 1991, after
political forces had thwarted the federal government from
funding a survey on sexual behavior, justified in the context
of AIDS prevention, the Robert Wood Johnson Foundation took
the initial role in financing it. The effort was later joined
by the Ford Foundation, the Henry J. Kaiser Family Foundation,
the Rockefeller Foundation, the Andrew W. Mellon Foundation,
the John D. and Catherine T. MacArthur Foundation, the New
York Community Trust, and the American Foundation for AIDS
Research. There is security in numbers.
Partnerships give foundations
the opportunity to pool intellectual as well as financial
resources by bringing different perspectives and potentially
complementary areas of expertise to common concerns. Under
the Local Initiative Funding Partners Program, The Robert
Wood Johnson Foundation shares in the funding of projects
identified by local foundations. This sharing plays to the
strengths of both partners: local foundations’ superior knowledge
of their communities and The Robert Wood Johnson Foundation’s
large resource base and expertise in health. In another case,
the Corporation for Supportive Housing played to the interests
of three collaborators: the Ford Foundation and the Pew Charitable
Trusts, which wanted to increase the number of units of housing
in inner cities, and The Robert Wood Johnson Foundation, which
wanted to improve health care. "Program officers from
the three foundations were able to learn from one another,"
says former Robert Wood Johnson Foundation staff member Stephen
Somers, who represented the Foundation in the partnership.
Collaboration with a more
experienced foundation can bring credibility to a new foundation
and help its staff learn the craft of philanthropy. Shortly
after Rebecca Rimel, now the president and chief executive
officer of the Pew Charitable Trusts, joined Pew, in the 1980s,
she got in touch with senior executives at The Robert Wood
Johnson Foundation. She wanted to gain expertise in health
philanthropy from a foundation with more experience. This
led to the first of several partnerships between Pew and Robert
Wood Johnson—a program called Health Care for the Homeless.
"These collaborations were pivotal in helping us to learn
how to design programs, how to conduct evaluations, and how
to use money strategically," Ms. Rimel says. "They
enabled us to establish a national reach quickly." So
meaningful was the collaboration that Ms. Rimel keeps a framed
copy of the cover of the Call for Proposals of the Health
Care for the Homeless program on the wall of her office; it
is the only business-related piece of memorabilia to have
such a place of honor.
Having a partner or partners
can also bolster the resolve of the collaborating foundations
to remain involved over the long term. One area where partnership
among foundations seems to have been most effective is in
creating new institutions—the Social Science Research Institute,
the International Rice Research Institute, the Puerto Rico
Community Foundation, the National Center for Tobacco-Free
Kids, and Grantmakers in Health, to name a few, were initially
supported by collaborative efforts of foundations. "It
takes at least a decade for a new institution to take hold,"
says Susan Berresford, president and chief executive officer
of the Ford Foundation. "You need to have an explicit
understanding that you’re going to be there in five years
and ten years. Partnerships are one way of doing this, because
you can all reassure one another that you’re in for the long
haul."
Barriers to
Collaboration
Despite the potential advantages
of working together, the barriers to creating and maintaining
effective partnerships are so formidable that they threaten
to sabotage the concept at all stages. The dearth of collaborations
among national foundations may well reflect a decision, reached
unconsciously or consciously by program staffs and boards,
that they are simply not worth the effort.
In the first place, every
foundation likes to see itself as fulfilling its own distinctive
and important mission. Each wants to make a difference and
to fund innovative, creative solutions to social problems.
Working to fulfill somebody else’s mission is often viewed
as a diversion of energies and resources.
In fact, the barrier is
probably less one of noncomplementary missions and more one
of who gets credit. Boards and staff want to have their
foundation’s name on major initiatives. They want to take
credit for having developed programs—not simply being a member
of a team or, even worse, a bit player. Unlike commercial
ventures, where success is measured by rising stock prices,
increased market share, and compensation or other monetary
reward, success in philanthropy is, to a great extent, measured
by public visibility and appreciation. Second billing—or even
shared billing—threatens one of the reward systems that drive
philanthropy.
Meshing the cultures of
two or more institutions can pose a major challenge. Foundations
are on different timetables; boards require different kinds
and amounts of information; the authority of program officers
varies from place to place; some foundations take a hands-off
approach with grantees, while others are very directive. Financial
and narrative reporting requirements differ among foundations.
The more foundations involved in a collaboration, the more
cultures that must blend—or at least co-exist in relative
harmony. And the harder grantees have to work to satisfy all
the partners, particularly when, as often happens, each has
its own reporting requirements and schedule.
Moreover, partnerships are
a hassle: time consuming, heavy on process, and requiring
an inordinate amount of time spent in meetings. For staffs
and boards impatient for results, the transaction costs are
high. In the world of philanthropy, time is extremely precious;
the work involved in developing and maintaining a partnership
can be viewed as wasting a valuable asset.
Program officers receive
few, if any, rewards for furthering collaborations. Foundations
often judge their program staff on the basis of the number
and the quality of the grants with which they are associated;
because partnerships take so long to develop and are labor-intensive
to maintain, they impede the work upon which career advancement
is based. Additionally, partnerships may require ceding decision-making
authority to a partner; as a result, program officers run
the risk of being blamed for mistakes beyond their control.
And staff turnover can be high. Even where
trust has developed, the departure of a key staff member can
slow the momentum of a partnership. Each new program officer
has to learn about the program and develop personal links
all over again. Health of the Public, initially a collaboration
between the Pew Charitable Trusts and the Rockefeller Foundation
and later a partnership between Pew and Robert Wood Johnson
that was designed to help academic medicine fulfill its social
contract, is an example. There were so many changes in the
people overseeing the program at the foundations that Jonathan
Showstack, the national program codirector, observed, "The
National Program Office became Health of the Public’s institutional
memory and source of training for the frequently revolving
program staffs of the foundations involved."
With the economy booming
and the stocks that form the basis of foundations’ assets
at all-time highs, many large national foundations have the
money to fund programs themselves. Even though collaborative
funding could free funds for other initiatives, many officials
of the more well endowed foundations feel little financial
imperative to seek out partners.
Finally, there is the danger that collaborative
decision making may lead to a lowest common denominator approach
and stifle innovation. Although the coalescing of many viewpoints
can foster creativity, it can also lead to an exclusion of
ideas outside the mainstream as decisions are hammered out
on a consensus basis. Along the same lines, a partnership
may give the appearance of collusion. A group of organizations
may dominate thought about an issue and unduly sway the agenda
of others who might have acted differently. Organizations
outside the collaboration may feel that the collaborators
are ganging up on their rivals.
All in all, these are powerful
incentives not to establish partnerships and potent
factors that can threaten their viability once they are established.
The Continuum of Partnerships
Even though every partnership
is unique, on a general level, partnerships tend to fall along
a continuum, as illustrated by Figure 10.1, from loose arrangements
where the partners merely talk to one another to deeper collaborations
where the partners cede individual control and truly merge
their interests.
Information Sharing
This is the weakest form
of collaboration—if it qualifies as collaboration at all.
In its most
primitive form, it includes foundation presidents getting
together at the Council on Foundations and other locales,
program officers from different organizations talking about
matters of common interest, meetings of so-called "affinity
groups," and the like. Sharing information among colleagues
can be a first step leading to more profound partnerships
or it can be a rudimentary form of collaboration in itself—as
when foundations working in the same thematic or geographic
area learn what others are doing in order to avoid overlap
or working at cross-purposes.
Cofunding Arrangements
Here foundations not only
share information but also fund the same grantee—often buying
into the vision of a strong individual able to put together
a package of funding. There may be a lot of communication
among the foundations, but there does not necessarily have
to be. The Robert Wood Johnson Foundation has, with other
foundations, supported organizations such as the National
Health Policy Forum, Grantmakers in Health, and the National
Center on Alcohol and Substance Abuse at Columbia University.
Joint Partnerships with Senior
and Junior Partners
Sometimes a foundation has an interest in
funding an activity but feels that it needs additional collaborators.
In this case, the first foundation often serves as the senior
partner in the collaboration. In the All Kids Count Program,
for example, The Robert Wood Johnson Foundation had funds
for only 15 sites in a national demonstration program to develop
childhood immunization registries; by enlisting the support
of the David and Lucile Packard Foundation, the Annie E. Casey
Foundation, the California Wellness Foundation, the Flinn
Foundation, and the Skillman Foundation, All Kids Count added
nine more sites. Similarly, when The Robert Wood Johnson Foundation
first considered establishing the National Center for Tobacco-Free
Kids, the staff felt that the advocacy goals would be advanced
and the political risks reduced if the project were undertaken
in collaboration with other foundations. (The Foundation also
wanted to be sure its funds were not used for lobbying purposes.)
The American Cancer Society, American Heart Association, American
Academy of Pediatrics, American Lung Association, American
Medical Association, and the National PTA joined Robert Wood
Johnson to provide initial funding to the Center.
On occasion, The Robert
Wood Johnson Foundation enters a collaboration as the junior
partner. In a program called Eye of the Child, The Robert
Wood Johnson Foundation joined a number of other foundations,
under the leadership of the Carnegie Corporation of New York,
in an effort to publicize the importance of early childhood
development. The Robert Wood Johnson Foundation contributed
money and its staff attended periodic meetings, but it never
sought to exercise leadership.
Joint Partnerships Running Along
Separate Tracks
In this form of partnership,
foundations fund a common grantee, but each maintains control
over a specific portion of the project. Some planning may
be done jointly, and meetings among the partners and grantees
may be held periodically. Turning Point is an example. So
is the Corporation for Supportive Housing, a joint venture
among the Ford Foundation, the Pew Charitable Trusts, and
The Robert Wood Johnson Foundation. Begun in 1991, this program
funded affordable housing for people with AIDS and other serious
disabilities. In a roughly equal partnership, the three foundations
pursued their distinct but mutually supportive objectives.
Joint Partnerships Running Along
a Single Track
In this kind of collaboration,
a number of foundations work together to plan an initiative
and then merge elements of implementation or monitoring. There
might be a single national advisory committee and a single
national program office. Strengthening Hospital Nursing, a
collaborative effort between the Pew Charitable Trusts and
The Robert Wood Johnson Foundation, is an example. Pew was
interested in looking at ways to improve the health professions,
and was working its way through them one at a time—dentists,
pharmacists, and so forth. Robert Wood Johnson felt that it
was important to prepare hospital nursing for an era of managed
care. With the Health Care for the Homeless collaboration
already under their belts, another collaboration involving
the same parties seemed logical. Not only did the two foundations
jointly fund this $27 million program, they also established
a single national program office to administer it, and a single
national advisory committee to provide guidance.
The Turning
Point Program
The barriers to collaboration
and the perseverance needed to navigate a partnership are
amply demonstrated by the Turning Point Program, a $24-million,
six-year collaboration between the W.K. Kellogg Foundation
and The Robert Wood Johnson Foundation to "transform
and strengthen the public health infrastructure in the United
States." Like many marriages, this partnership has endured
some rocky times, but both partners are still together, feel
that the strengths of working in partnership outweigh the
difficulties, and are determined to continue the relationship.
Turning Point, which emerged
in 1996 from a web of institutional and personal relationships,
began as something of a coincidence. From the early 1990s
on, senior executives of the Kellogg Foundation and The Robert
Wood Johnson Foundation had been meeting from time to time
to explore ways in which the two foundations could collaborate.
"We focused on three areas," says Tom Bruce, a former
program director of Kellogg. "Public health, Native Americans,
and the health professions." Parallel to these conversations,
a small public health working group at The Robert Wood Johnson
Foundation under the leadership of Nancy Kaufman, a vice president,
and Marilyn Aguirre-Molina, a senior program officer, had
been meeting to devise ways in which Robert Wood Johnson could
help modernize and strengthen state health departments.
At roughly the same time, the Kellogg Foundation, under the
leadership of vice president Gloria Smith and program directors
Steven Uranga-McKane and Tom Bruce, was working to develop
an initiative to strengthen local health departments.
In November, 1996, Kaufman and Bruce attended
a small meeting in San Diego of some of the key people interested
in improving public health nationally. As the participants
went around the table and introduced themselves, Kaufman said
that The Robert Wood Johnson Foundation was looking into ways
to strengthen state health departments, and Bruce said that
Kellogg was thinking of doing the same thing on the local
level. Kaufman and Bruce had dinner that night. "We decided
that the only way to do this is together," Kaufman says.
"Why have two separate initiatives when we could have
a partnership?"
When the idea of a collaboration
was broached at The Robert Wood Johnson Foundation, there
was considerable excitement about it. After all, two major
foundations working together to solve the same problem ought
to have more impact than two foundations working in isolation.
Bruce and some of his colleagues from Kellogg were invited
to Princeton for discussions, and the principals from both
foundations began to meet, share information, and make plans
together.
Then the first storm clouds
began to appear. While The Robert Wood Johnson Foundation
was just beginning to consider how to approach the issue of
improving public health, the Kellogg Foundation was pretty
far down the road with its project. Kellogg had already
decided what it wanted to do and how it was going to do it,
and had made an agreement with the National Association of
County and City Health Officials, or NACCHO, to manage the
program. Although everybody liked the concept of collaboration,
when it came down to it, the thought of bringing in The Robert
Wood Johnson Foundation and involving state health
departments was initially somewhat problematic for the Kellogg
Foundation and NACCHO. "We didn’t realize what we were
getting into," says Vincent Lafronza, national program
director of the Kellogg-funded portion of the Turning Point
Program, based at NACCHO. "We had no idea that Turning
Point would not move unless the states were involved."
Meanwhile, some people at The Robert Wood Johnson Foundation,
which was just dipping its toes into the public health waters,
were developing their own reservations about the collaboration.
The concerns on both sides were addressed by keeping the state
and local elements of Turning Point separate for the most
part. Although a single national advisory committee was appointed
to provide overall guidance, two separate national program
offices were designated to manage the program: NACCHO for
the Kellogg-funded local health component and the University
of Washington School of Public Health and Community Medicine
for the Robert Wood Johnson–funded state health component.
Cultural differences showed
up almost immediately. "The two foundations have fundamentally
different values," says Bobbie Berkowitz, the national
program director of The Robert Wood Johnson Foundation–funded
portion of Turning Point. "Kellogg is a community-oriented,
grass roots kind of organization really interested in the
community. Robert Wood Johnson is more large scale, systems
oriented, and interested in having a major impact nationally.
The differences in values and philosophy have manifested themselves
throughout the life of the program—in discussions about what
should be expected of grantees, how the Call for Proposals
should be written, how the program should be funded, how it
should be evaluated, and which sites should be selected as
grantees."
The Robert Wood Johnson
Foundation tends to be precise about what it expects of grantees.
It prefers proposals whose success can be measured by observable
outcomes. In contrast, the Kellogg Foundation tends to be
less directive and more responsive to the desires expressed
by the community. "Kellogg initially wanted to give local
health departments very wide latitude about what they could
do under Turning Point. Robert Wood Johnson had a tendency
to let the health departments know what results it expected
them to achieve," says Marilyn Aguirre-Molina, formerly
the senior program officer at The Robert Wood Johnson Foundation
overseeing Turning Point and now a professor of public health
at Columbia University.
The Robert Wood Johnson
Foundation traditionally develops program ideas by talking
to a wide variety of people knowledgeable about a field, by
digesting and refining the ideas it gathers, and, ultimately,
by letting potential grantees know specifically what it wants
through a Call for Proposals. Within the culture of The Robert
Wood Johnson Foundation, a Call for Proposals is a detailed,
carefully prepared document that is approved at the highest
levels. Kellogg takes a fundamentally different approach.
"We tend to send out an announcement generally describing
the areas we wish to fund and ask the field for its ideas,"
says former Kellogg program director Tom Bruce. Steven Uranga-McKane,
former lead program director for Turning Point at the Kellogg
Foundation, adds, "Often, a potential grantee will simply
send a letter of intent. If the idea appears to have potential,
the program staff works with the grantee to shape something
that can become a proposal." Merging these two approaches
to announce a new program where the two foundations still
weren’t wholly clear about what they wanted to accomplish
proved to be a challenge. As it turned out, the Call for Proposals
was a compromise. It let potential grantees know in general
terms about the new program to "provide support for states
and local communities to improve the performance of their
public health functions through strategic development and
implementation processes," and informed them that certain
outcomes—such as "developing and initiating a community
health improvement plan to enhance policies and programs for
advancing the public’s health"—were expected.
At the meeting to select
the sites held late in 1997, the tension between the grass
roots/community-based approach of Kellogg and the national
policy/systems change approach of Robert Wood Johnson quickly
surfaced. Teams consisting of members of the two foundations,
the two program offices, and the national advisory committee
had visited potential grantees. "Kellogg has a strong
commitment to communities and to diversity," says Barbara
Sabol, program director at the Kellogg Foundation overseeing
Turning Point. "It was very clear that the projects to
be selected must reflect ethnic and class composition of the
community." While committed to diversity, Robert Wood
Johnson was also concerned with the potential to make policy
changes that would have national significance. "Somebody
from Robert Wood Johnson would say, ‘We had a tremendous site
visit to, say, New Hampshire or Wisconsin,’" says Susan
Hassmiller, senior program officer at The Robert Wood Johnson
Foundation overseeing Turning Point. "Then somebody from
Kellogg would respond, ‘But we need a southern rural state’
or ‘It’s not diverse enough.’" Eventually, the two foundations
agreed to fund 14 states with 41 local partners.
However, the state and local
grantees were placed on different timetables from the start.
Because public health was a new area for Robert Wood Johnson,
the Foundation authorized only two years of funds for planning
and agreed to consider additional funds for more sites and
for implementation at a later time. Kellogg authorized three
years of funding up front for both planning and implementation
at its sites. Gloria Smith, vice president of the Kellogg
Foundation, notes, "It would have been far better for
both foundations to have been on the same timetable from the
start and to plan the program around a common framework."
Even as these fundamental
differences in values and operating styles threatened the
collaboration, the partners worked together to develop the
program and make it succeed. The key factors, according to
former Robert Wood Johnson staff member Marilyn Aguirre-Molina,
were the commitment, the good will, and the mutual trust of
the key players at the two foundations and the two national
program offices: "The two national program directors—Bobbie
Berkowitz at the University of Washington and Vincent Lafronza
at NACCHO—have been able to give the program a strong sense
of stability and collaboration." Even with substantial
staff turnover—within two years, the original program officials
at the Kellogg and Robert Wood Johnson foundations and the
original national program directors at the University of Washington
and NACCHO had all moved on—the relationships among the program’s
leadership were, on the whole, warm, open, and productive.
Friendly relationships notwithstanding,
tensions within the partnership continued. Perhaps the most
important conflict arose at the time of the decline in the
market value of Kellogg stock, the primary source of the Kellogg
Foundation’s assets, in October, 1998.2
Shortly before the second annual meeting of state and local
grantees—which, coincidentally, was scheduled to take place
in October, 1998, in Phoenix, Arizona—NACCHO sent a letter
to its 41 grantees informing them that because of the stock
market decline, the activities of the Turning Point grantees
would have to be curtailed significantly.
Neither the staff of The
Robert Wood Johnson Foundation nor that of its national program
office at the University of Washington knew about the letter
beforehand; they were disappointed to learn about it only
on the eve of the meeting. For its part, Kellogg was struggling
with its own internal financial situation, which took precedence
over giving advance notice to its partners. The lack of communication
among the partners eroded much of the trust that had been
so carefully nurtured, and had a detrimental impact on the
partnership.
But the program—and the
partnership—was still important to the public health community.
Many people in the foundations, the national program offices,
and the states and communities had worked exceedingly hard
to make Turning Point a reality. Officials at both foundations
felt the partnership was making a difference. "We were
able to support some incredible public health partnerships
that never would have occurred without Turning Point,"
Kellogg’s Barbara Sabol says. And there was a basic
respect in each foundation for the strengths of the other.
"The melding of the two cultures made Turning Point a
terrific opportunity to learn from each other," Robert
Wood Johnson’s Nancy Kaufman says. "When we set up the
national advisory committee, for example, Kellogg introduced
us to an incredible array of community leaders whom we had
not known before. The breadth and diversity was terrific."
If it was possible, key staff members of both foundations
felt, the relationship had to be maintained.
To put things back on track,
Sue Hassmiller of Robert Wood Johnson suggested holding a
retreat for the key people from the two foundations and the
two national program offices. The retreat, which was held
in Chicago in August 1999, turned around the flagging collaboration.
Everyone recognized that the serious problems of communication
and trust had to be addressed, and the participants were able
to agree upon a plan of regular communication to repair the
damage. The partners were then able to turn to more mundane
programmatic matters, such as the whether or not to bring
in additional states. The Robert Wood Johnson Foundation decided
to fund seven more states.
The Chicago retreat appears
to have led to a greater resolve between the foundations to
communicate more fully and openly. "The next Turning
Point meeting was a national Forum held in Atlanta a few months
later. It was one of the best meetings I ever attended,"
Robert Wood Johnson’s Susan Hassmiller says. "There was
a complete turnaround—a sense of true collaboration. Not only
between the two foundations but also among the state and local
partnerships. I had this same feeling at the next Turning
Point meetings as well. Things seem to be back on track."
Principles
for Developing and Maintaining Partnerships Among Foundations
The experience of national foundations in
developing collaborations offers a number of principles that
can serve to guide future partnerships. The six principles
that follow can help to identify areas where the pluses of
partnerships are likely to outweigh the minuses; to structure
partnerships in a way that will minimize problems; to prepare
in advance for problems that are likely to occur; and to provide
incentives that encourage collaborations where collaborations
are appropriate.
1.Before entering into a collaboration,
each of the potential partners should conduct hard-headed
analysis to be sure that the partnership will further its
own priorities and that it can work with their potential partners.
In a business partnership, such analysis
would come under the rubric of "due diligence."
Not only should each foundation view the partnership as
advancing its own mission—which is usually pretty general—but
the potential partnership should also be seen as furthering
more narrow goals or objectives. "There should be clarity
among all involved—board and staff—concerning a foundation’s
rationale for entering into a partnership and what it expects
to get out of it," says Denis Prager, president of
Strategic Consulting Services of Portage, Wisconsin. It
is equally important that each foundation understand, to
the extent it is possible, the culture and the operating
style of its potential partners. Ideally, the cultures will
be compatible or, at least, complementary. This means that
part of the due diligence should consist of an examination
of the potential partners’ values, style, approach to grant
making, and manner of doing business.
2.The partners should develop clear,
limited, and achievable
objectives.
Although formulating clear objectives
is desirable in any case, it becomes more important when
many parties—each of which can interpret things differently
and is likely to undergo staff changes—are involved. Susan
Berresford, president and chief executive officer of the
Ford Foundation, has said that collaborations should be
driven by "a clear and shared vision of what is to be accomplished."3
William Richardson, president and CEO of the Kellogg Foundation,
observed, "Clear goals prevent ambiguity and, more important,
give the partnership a sense of purpose and urgency." He
uses Project 3000 by 2000 as his example of clarity in goal
setting. Writing in 1998, he observed, "This effort, which
is funded by the Kellogg Foundation, The Robert Wood Johnson
Foundation, and the Association of American Medical Colleges,
has an unmistakable goal: to increase the number of African
American, Native American, and Hispanic students entering
the nation’s 125 or so medical schools. When this partnership
reaches its goal of 3,000 students by the year 2000, it
will mean that 19 percent of the students entering medical
schools are of minority status."4
3.Build considerations of people
into the planning and implement ation process.
It is deceptively easy to think of collaborations
as arrangements among institutions. However, people make
partnerships; institutions only lend their names. Rosabeth
Moss Kanter, in a landmark study of partnerships involving
37 businesses, observes, "Successful alliances build
and improve a collaborative advantage by first acknowledging
and then effectively managing the human aspects of their
alliances."5
The good will shown by the staff of The
Robert Wood Johnson Foundation and the Kellogg Foundation,
for example, saw the Turning Point program through some
rough seas. Similarly, lack of personal relationships has
torpedoed a number of potentially fruitful partnerships.
The personal element of collaborations can be strengthened
by taking steps such as these:
- Involve senior foundation executives—vice
presidents or higher—at all stages. The influence of
a senior staff member can be important in directing attention
to a collaborative program and building support for it,
as well as bringing resources to bear to solve problems.
Conversely, lack of support can mean that a partnership
will languish. "At The Robert Wood Johnson Foundation,
a partnership simply won’t go anywhere without the strong
support of a vice president," observes Rush Russell,
a former senior program officer at the Foundation and currently
a consultant to it.
- More than one or two people at a foundation
should feel a sense of investment in a partnership.
Given the high staff turnover at foundations, it is unlikely
that the same people who initiated a collaboration will
be there at the midway point. Yet continuity and continued
commitment remain important. The Health of the Public and
Strengthening Hospital Nursing programs, for example, suffered
because key foundation staff members left. The more people
invested in a partnership, the less the potential damage
when staff members depart.
- Arrange staff changes so that new
staff members can overlap with departing staff members.
Since people leave unexpectedly and, sometimes, with little
notice, this is not always possible. Where overlap can be
arranged, programs benefit.
- There is no substitute for face-to-face
meetings, which should be scheduled regularly. Even
in an age of e-mails, faxes, and teleconferences, the importance
of meeting one’s colleagues in person should not be underestimated.
Jan Eldred, vice president of the California HealthCare
Foundation, notes, "The Bay Area Independent Elders
Programcollaboration of three relatively big California
foundations, one smaller foundation, and Kaiser Permanente—worked
in large part because the CEOs of the major foundations
met in person every six months or so. By the third year
of the program, the presidents of all three foundations
had changed and the priorities of at least one of the foundations
had shifted. But because of these in-person meetings and
the commitment they implied, the program continued despite
the personnel and programmatic changes."
4.Expect to face cultural differences
among the partners and plan in advance how to deal with them.
The single most pervasive institutional
obstacle to successful partnerships is differences in institutional
cultures—the way the partners solicit and make grants, monitor
grantees, disburse funds, provide assistance, evaluate activities,
and so forth. While an organization’s culture is integral
to its identity and cannot be expected to change, steps
can be taken to reduce and deal with the tension arising
from the mingling of different cultures, among them:
- Recognize that cultural tensions are
inevitable. This will eliminate surprises when they
occur. To the extent possible, anticipate areas where clashes
are likely to occur and try to preempt them. Tom David,
vice president of the California Wellness Foundation, notes,
"There should be agreement on the mechanisms
for decision making and group governance, a detail that
is often dealt with only after a partnership has been established."
- Approach partnership cautiously rather
than plunging in. Co-funding arrangements, such as the
3000 by 2000 program, require less collaborative effort
and ceding of authority—and, therefore, less chance of cultural
clashes arising—than do more complete partnerships where
planning and monitoring are done jointly. Short-term, less
comprehensive collaborations can always be expanded; it
is more difficult to cut back an unsuccessful partnership.
- Keep talking. As long as the lines
of communication remain open and partners are treated with
respect, overcoming differences is possible. "A partnership
is like a marriage," says The Robert Wood Johnson Foundation’s
Susan Hassmiller. "You’ve got to communicate, communicate,
communicate."
5.Ensure transparency in decision making
and open channels of information sharing.
Decision making in partnerships can be
a tricky business. Which decisions and issues are the prerogative
of a single organization? Which necessarily involve all
the organizations in the partnership? While the answer will
be different in different cases, the value of openness is
indisputable. Transparency involves sharing all relevant
information before any decisions that may affect the partnership
are made—regardless of who has jurisdiction for the decision.
While transparency may not ameliorate differences of opinion
or interpretation, it preserves the core ethics of fairness
and shared responsibility—the pillars upon which trust is
built.
6.If partnerships are important, change
the reward system to encourage them.
Right now, program officers engaged in
or trying to develop partnerships with other foundations
tend to be penalized rather than rewarded. They get no credit
that will advance their careers; must fight to get the program
through the staffs and boards of more than one foundation;
must defend against criticism of program elements included
at the insistence of the partner; must attend a lot of meetings
just to maintain the partnership; and, in general, must
go to a lot of trouble. Program officers or senior executives
seeking to advance must ask themselves the question "Why
bother?" If foundations are serious about engaging
in partnerships, they must find a way to reward those who
attempt to create them.
Conclusion
Partnerships among national
foundations are desirable in many, but not all, circumstances.
Although they can have the decided benefits of bringing attention
to a field, of increasing financial and intellectual resources
devoted to a problem, and of decreasing risk in controversial
fields, the pitfalls are also great. For a grantee, partnerships
among funders can be a mixed blessing: on the one hand, they
have the advantage of bringing additional resources, adding
credibility, and lessening dependence on a single donor; on
the other, they can cause a great deal of extra work and subject
grantees to contradictory directions emanating from the different
partners.
While every situation
will have different pros and cons, there are some instances
where collaborations appear more likely to be fruitful:
- Developing new institutions where every
partner in a group of funders can put up money in the initial
stages.
- Entering areas of potential controversy
where a consortium approach can distribute risk more widely.
- Addressing large, difficult-to-solve
problems like rebuilding inner cities or reducing urban
poverty that require a great deal of money and lend themselves
to a variety of approaches.
Before entering into
a partnership, each party should be clear that the potential
benefits of collaboration are substantially greater than the
potential drawbacks and that the commitment of all the parties
is sufficient to see the partnership through the difficult
times that are likely to arise.
Notes
- C. J. Walker and M.
Weinheimer. Community Development in the 1990s. Washington,
D.C.: The Urban Institute, 1998. (return
to article)
- M. Dundjerski. "Instilling
Healthy Competition." Chronicle of Philanthropy,
December 3, 1998. (return to article)
- S. V. Berresford.
"Principles for Partnership." Ford Foundation
Report, Winter 1999. (return to article)
- W. Richardson. Speech
to Grantmakers in Health on February 27, 1998. (return
to article)
- R. M. Kanter. "Collaborative
Advantage: The Art of Alliances." Harvard Business
Review, 1994, 72(4), 96–108. (return
to article)
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