← Leading Organizations That Matter
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Foreign welcome to Leading Organizations that Matter, a podcast about leadership and how we find impact, meaning and joy in our work. I'm Ray Spadoni and today's topic is Contemplating M and A Pursuing the Cake and Eat it Too According to the Cambridge Dictionary, the expression cake and eat it too means the to have or do two things at the same time that are impossible to have or do at the same time. To which I say, if you can find a way to have your cake and eat it too, then good on you. It's certainly worth trying. This is especially true in the world of M and A, that is Mergers, acquisitions, affiliations, strategic relationships, and so on. This is a very, very hot topic right now and many M and A experts talk about things like value, earnings, ratios and multiples. These are drawn from the for profit realm and are often clumsily and unsuccessfully applied to nonprofit situations. This podcast is not about valuation methodology, but rather is about the mindset that can lead some organizations to consider such options, that is to merge, to be acquired, or to significantly partner with another entity. I often hear the voices of two cross current perspectives within these organizations. These voices include these types of expressions and sentiments. Cross current Number one There's significant consolidation taking place in the industry. We are increasingly not at the table when critical decisions are being made that impact us. It's getting harder to compete with the big players. We need greater access to capital to innovate, meet operational demands, grow, compete and survive. The other organizations are not directly attacking us, but they are constantly chipping away at us. We will never give up our name. We need continued full autonomy. We cannot water our mission down in any way. Our board members will never let us. We don't want to lose our small organizational feel as a result of these voices in the organization. Sometimes leaders will be commissioned to go out and find that cake and eat it too. Option one that will both preserve the autonomy and smallness of the organization while also allowing it to to compete with the bigger players. Yeah, good luck with that Again, if the leader can find that option, fantastic. In my experience, however, such expeditions often end up turning into endless frustrating wild goose chases and ones that can bruise relationships as the resulting affiliation discussions can turn friendly organizations sour against each other. There's no simple remedy here other than to acknowledge these cross currents openly and to actively begin trade off conversations. A board may want 10 things, but it will help to understand which of those tens are the highest priorities and what the actual specific no fly zones really are. Doing this up front can save time, frustration and result in a better and more sustainable outcome for everyone involved. Thanks for listening. Leaving a positive review and letting others know about this podcast will help a great deal. My mission is to help empower organizations that matter by supporting those who lead them. I offer coaching, mentoring and consulting services. You can learn more about me and my work@racepadoni.com.