DEFINITIONS OF STRATEGIC ALLIANCES
Copyright John A. Yankey, Ph.D.
ENDORSEMENT: An alliance wherein an organization provides approval or support of a concept or action already conceptualized or completed by some one else (letters of support).
CO-SPONSORSHIP: An alliance in which two or more organizations share (although not always equally) in the offering of a particular program or service. The organizations share in the potential benefits and risks associated with sponsoring the program or service.
AFFILIATION: A loosely connected system of two or more organizations with a similar interest(s). Member organizations remain independent but have influence on each other through the dissemination of information and ideas. Affiliations may not be permanent and may or may not result in common ownership or control of affiliates.
FEDERATION/ASSOCIATION: An alliance of member organizations established to centralize common functions. This type alliance frequently coordinates fundraising, public relations, training, and lobbying for members. Members are independent, but the alliance often determines members’ roles and resource allocation through policy development.
COALITION: An alliance of independent organizations which usually share a political or social change goal. This form of alliance is frequently established for a limited or specific purpose(s). Member organizations retain own autonomy and make varying contributions to the alliance based on their resources and expertise. The alliance may have a central coordinating staff (volunteer or paid).
CONSORTIUM: An alliance of organizations and individuals representing customers, service providers, and other agencies who identify themselves with a specific community, neighborhood or domain. Members collectively apply their resources to implement a common strategy and achieve a common goal. The alliance frequently is sponsored by convening organizations that take responsibility for overall coordination.
NETWORK: An alliance of organizations which share resources for mutual benefit such as service provision. Formal, legal documents govern the sharing of resources, but organizations maintain their own identities, governance and core functions particularly for activities beyond the scope of their network.
JOINT VENTURE: A legally formed alliance in which member organizations maintain joint ownership – (generally through a joint governance board) to carry out specific tasks or provide specific services. Member organizations retain individual identities and governance for activities outside the scope of the joint venture. If an organization withdraws from it, the joint venture dissolves or reconfigures. This type alliance frequently functions as an unincorporated business, with financial results flowing directly to the partners.
ACQUISITION: An alliance in which an organization acquires a program or service previously administered by another organization.
DIVESTITURE: An alliance arrangement in which one organization "spins off" a program or service to another organization.
MERGER: A statutorily defined alliance in which one organization is totally absorbed by another. The absorbed organization is completely dissolved and the surviving entity owns the assets and liabilities of both. A merger may be traditional, discretionary, or involuntary.
CONSOLIDATION: An alliance in which two or more organizations come together to form a new organization. The member organizations are dissolved to create the alliance. The assets and liabilities of the former organization(s) are combined and a new governing board is created.
