The Importance of Strategic Alliances in the Growth of a Non-Profit Organization

Strategic alliances are instrumental in organizational growth. Yet, they are risky and are not always a success. Poor strategy ends 50% of all alliances and the other 50% ends due to poor management (Elmuti & Kathawala, 2001). In order for an alliance to be successful, there are many facets that need to be addressed such as integrating it into an organizations strategic plan, and managing the relationship and allocating staff, to name a few (Wakeam, 2003). A non-profit organization in Central Minnesota has formed an alliance with a for-profit business to create greater opportunities for both organizations. The chances for success are high because of a 10-plus year relationship; however it has grown into a complex strategic alliance. This paper aims to examine how these two organizations can operationalize the strategy that has been designed, allowing both businesses to efficiently and effectively capitalize on what has been built and expanding upon that plan. The latest version of the plan needs to be operationalized, allowing future business opportunities to develop. This research will provide guidance for the non-profit as they continue to foster the alliance with CSS and form alliances with other organizations in order to grow their business.