Comprehensive Corporate Relations: Forging Mutually Beneficial Partnerships
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1 the Mnthly Publicatin f the Arts Cnsulting Grup Vlume XIV Issue 8 Cmprehensive Crprate Relatins: Frging Mutually Beneficial Partnerships Dale Hedding, ACG Vice President, and Jennifer Schwartz In 2011, the Netwrk f Academic Crprate Relatins Officers (NACRO), with members representing mre than 120 research institutins, issued a white paper n Five Essential Elements f a Successful Twenty-First Century University Crprate Relatins Prgram. In the preface, NACRO bserved that there has been a fundamental shift in the way that crpratins interact with universities. Thugh develped in a university envirnment, NACRO s Five Essential Elements shuld be f strng interest t the arts and culture sectr and can prvide a valuable guide t imprving the ways in which cultural institutins can ffer better value t, and enhanced relatinships with, crprate partners. In this editin f Arts Insights, we explre these mutually beneficial partnerships. Crprate ROI in Philanthrpy Mst crpratins perate differently than ther types f dnrs and are seeking tangible return n investment (ROI) frm their nnprfit partners. They pursue partnerships that enhance their wn business gals, such as increased sales, crprate branding, prmtinal pprtunities, custmer relatinship develpment, and emplyee lyalty prgrams. NACRO members recgnized that their effectiveness was ften diminished when their institutins apprached crpratins slely as philanthrpic partners. NACRO wanted t identify the cre elements that culd be integrated int existing rganizatinal structures t meet the new paradigm f crprate partners as investrs in rder t maximize the verall value f crprate relatinships and the ptential fr new partnerships. The Five Essential Elements As arts and culture rganizatins cnsider hw t apply the fllwing Five Essential Elements t their wn fundraising prgrams, references t crprate relatins ffice, fficer, r manager typical in university settings can be applied t the persn(s) in the rganizatin with crprate fundraising respnsibilities wh serve as the liaisn between their wn internal departments and crprate partners. Fr many smaller rganizatins, this liaisn may nt be a dedicated psitin but handled by the develpment directr, crdinatr, grant writer, r even the executive directr. These factrs, hwever, shuld nt deter rganizatins frm implementing best practices in develping crprate partnerships. The cncepts presented here are applicable t almst any size arts and culture rganizatin. While sme rganizatins may feel that their smaller size makes them less cmpetitive in securing crprate funding, in fact, it might nt be size that hlds back underperfrming crprate prgrams. It might be the lack f creative pprtunities with mutual benefit and perceived value that are ffered t ptential crprate partners.
2 ARTS INSIGHTS - Vlume XIV Issue 8 - (PAGE 2 OF 5) 1. Institutinal Supprt The cmmitment f rganizatinal leadership t crprate relatins is critical t the successful applicatin f the Five Essential Elements. The value cmpanies seek is rarely within the exclusive dmain f the crprate manager r institutinal giving team t deliver. Arts leaders must make it clear that establishing and maintaining effective and sustainable relatinships with crprate partners is a pririty fr their institutins. If the leader sets clear expectatins acrss all departments and peratinal areas, then the varius staff members and departments are much mre likely t share infrmatin and cllabrate with the crprate relatins team. In sme rganizatins, metrics and incentives are changed t reflect the cperative effrt required frm develpment and nn-develpment staff fr cmprehensive crprate relatins t be successful. 2. Mutual Benefits The crprate relatins manager r team plays an imprtant rle bridging the crprate and nnprfit wrlds. They are uniquely situated t identify ptential win-win pprtunities by: Articulating the value prpsitin their rganizatin ffers. Helping t identify shared gals and matching a cmpany s strategic needs with their rganizatin s strengths. Advising n the design f prjects and initiatives that create mutual benefit. Facilitating cnversatins between internal staff, Bard members, and crprate partners. 3. One-Stp Shpping Cmpanies want a single pint f entry and t be guided t rganizatinal resurces relevant t their needs. T facilitate ne-stp shpping, cultural crprate relatins prgrams shuld prvide a relatinship nexus, which may be a team f fundraising staff r a single persn, wh can accmplish the fllwing: Create a central pint f entry fr all activity Simplify access Accelerate respnsiveness By-pass departmental sils Expand single prjects Build strategic alliances Facilitate interactins Prvide linkage and cmmunicatin with all areas f an rganizatin T crprate representatives, arts and culture rganizatins can seem cmplicated, and it may be difficult fr them t cmprehend the business mdel, the decisin making prcess, and the hierarchy and envirnment in which arts and culture rganizatins perate. It can als be challenging fr cmpanies t understand and imagine the pssibilities fr partnership pprtunities wrking with an arts r culture prduct that may be unfamiliar cmpared t the mre traditinal spnsrship vehicles which they nrmally pursue (e.g. sprts venues, large-scale festivals, prduct endrsement). Therefre, it is essential that arts rganizatins establish a clearinghuse fr all activities related t crprate relatins. This can be viewed as a cncierge service r a liaisn fr crprate partners. As mentined earlier, this may be as simple as a single persn charged with the respnsibility f crdinating all crprate relatins activity as it mves thrughut their rganizatin, thugh they need nt be the persn wh actually implements each different element f a crprate stewardship prgram. 4. Earned & Cntributed Revenue In the NACRO mdel, this categry is titled, Integrated Apprach t Research Develpment, which is ne f the majr surces f revenue in university settings and functins similarly t earned incme in arts rganizatins. While anther part f an rganizatin may be respnsible fr earned
3 ARTS INSIGHTS - Vlume XIV Issue 8 - (PAGE 3 OF 5) revenue, the crprate relatins ffice can play an imprtant rle identifying cmpanies with needs that ther parts f the rganizatin can fulfill. Examples include grup ticket sales, crprate hspitality, branding pprtunities, and cause marketing campaigns. A creative crprate relatins manager can help guide their arts r culture rganizatin beynd traditinal dnr benefits and present the full breadth f assets an rganizatin can ffer t crprate partners. 5. Organizatinal Crdinatin In rder t achieve strategic alliances, the crprate relatins prgram f the arts r culture rganizatin must prvide crdinatin acrss the institutin and facilitate: Internal cllabratins (e.g. ensuring that the publicatins team includes crprate spnsrship credits in apprpriate materials) Frequent cmmunicatin Infrmatin sharing with enugh advance ntice t be able t cnvert new infrmatin int new pprtunities fr crprate partners Crprate Relatinship Cntinuum/Tiering As crpratins have mved frm dnrs t investrs, their pririties have evlved. Crprate decisin making will be influenced by thse rganizatins which are able t prvide a cntinuum f hlistic value and deepening partnerships fr increased return n investment. The 2012 NACRO white paper Metrics fr a Successful Twenty-first Century Academic Crprate Relatins Prgram features best practices including a Crprate Relatins Cntinuum. The prcess f building mre cmprehensive crprate relatins can be seen as a cntinuum that tracks these relatinships acrss escalating tiers f engagement. The cntinuum can als serve as an accunt management tl and an assessment tl fr crprate relatins fficers. Belw is a visual representatin f an ideal prgressin acrss multiple tiers f engagement, frm the mre traditinal and basic engagement thrugh an evlved and sphisticated strategic partnership.
4 ARTS INSIGHTS - Vlume XIV Issue 8 - (PAGE 4 OF 5) The fllwing list prvides descriptins f the five tiers f NACRO s Crprate Relatins Cntinuum best practice and suggests sme characteristics that might identify where a crprate relatinship falls within the structured tiers. Tier 5: SINGLE POINT OF ENGAGEMENT Invlved in limited capacity: This relatinship might invlve nly infrequent cntact, small-scale giving, and pssibly in-kind gifts. Tier 4: MANAGED RELATIONSHIP Has few pints f interest that require crdinatin: Cmpanies in this tier may nt yet have custmized pprtunities (e.g. themed hspitality event at exhibitin pening), but nnetheless have multiple tuch pints that invlve crdinated activities. The cncept f relatinship management has been intrduced. Tier 3: TAILORED PARTNERSHIP Wrks clsely t identify value-added pprtunities fr deeper relatinship: In this tier, arts and culture rganizatins might be reaching ut t cmpanies with custmized pprtunities that ffer value tailred t specific crprate interests. These partnerships nw require internal mnitring and relatinship management and the cmpany expects a seamless apprach ( ne-stp shpping ) t activating the partnership. Tier 2: BROAD BASED ENGAGEMENT Engage acrss multiple departments/areas in a variety f ways, with cmpany leadership participatin: The arts and culture rganizatin is nw creating and managing multiple prgrams and events fr the spnsr; facilitating between multiple internal departments and persnalities; wrking at an advanced level f relatinship management; and nw has crprate leadership invlved in event planning, bards r cmmittees t develp partnerships tgether. Tier 1: STRATEGIC PARTNER Relatinship is lng-term, with significant, nging, financial cntributin and requires crdinatin with multiple ffices: The partnership nw requires central crdinatin; has large financial cmmitments that are likely branded prgrams requiring advanced spnsr servicing and recgnitin and early invlvement f cmpany representatives. Brainstrming Exercise The fllwing exercise can be effective in establishing where current crprate dnrs fall in the crprate cntinuum and hw t mve them alng the cntinuum. It can als help t begin the prcess f building rganizatin-wide cnsensus and supprt fr a team apprach with the ultimate gal f attracting crprate partners by creating innvative new pprtunities. 1. Begin by pltting several current crprate dnrs n a Crprate Relatins Cntinuum chart similar t the ne abve. 2. Invite clleagues frm develpment and ther key departments, which might include the executive ffice, artistic/curatrial, marketing/pr, peratins, prductin, and patrn services, t jin in a brainstrming discussin. 3. Share with this grup the basic cncepts f the Five Elements and the gal f using the cntinuum t think abut new pprtunities and techniques t mve current partners t higher tiers n the cntinuum. 4. Discuss each f the spnsrs n the cntinuum and seek inspiratinal and creative ideas frm each department n hw they can add value r prvide new pprtunities that develpment staff can ffer t increase the level f giving frm crprate partners. Here are a few examples f what a spirited grup discussin might yield:
5 ARTS INSIGHTS - Vlume XIV Issue 8 - (PAGE 5 OF 5) Yu meet yur spnsr s desire t prvide exciting vlunteer pprtunities fr its emplyee vlunteer prgram by cnnecting them with yur educatin department s need fr extra vlunteers t staff yur annual cmmunity arts pen huse celebratin. Yur spnsr is thrilled at the unique pprtunity t hst their next crprate bard meeting n the stage inside in the set f yur current musical n a dark night, thanks t the suggestin by yur theater s prductin department. Yur bank spnsr jumps at the chance t ffer vuchers t yur museum s new Saturday family series, meeting their desire t ffer mre family-riented lyalty benefits t custmers, while at the same time helping educatin launch this new series with high visibility thrugh the bank. Cnclusin Many arts and culture rganizatins have certainly seen r experienced the changing pririties f crprate giving prgrams in recent years, including reductins f crprate philanthrpic budgets, ften at the expense f the arts and culture giving categry. Successfully securing new r increased crprate giving in the current crprate climate will favr thse rganizatins willing t rethink the way they interact with crprate partners and thse wh are able take a mre creative apprach t reimagining the wide spectrum f assets and ptential partnership pprtunities that are pssible by harnessing the full range f resurces and staff talent within their rganizatins. Editr s Nte: Adapted frm a presentatin delivered by the authrs at the 2015 Assciatin f Fundraising Prfessinals (AFP) Internatinal Fundraising Cnference in Baltimre, Maryland in March With appreciatin t the Netwrk f Academic Crprate Relatins Officers (NACRO) fr their genersity in sharing the results f this extensive research effrt and placing their white papers in the public dmain. The Five Essential Elements and Metrics white papers can be fund here ACG Vice President Dale Hedding is an arts and culture industry management expert with mre than 25 years leadership experience and fundraising success at internatinally acclaimed rganizatins such as the Jhn F. Kennedy Center fr the Perfrming Arts and the Baltimre Symphny Orchestra. Based in the firm s Washingtn, DC ffice, Mr. Hedding leads ACG s Revenue Enhancement practice area, guiding cultural rganizatins thrughut Nrth America t increase cntributed revenue pprtunities, including annual, capital, endwment, and planned giving campaigns. Jennifer Schwartz is the Senir Directr f Crprate & Fundatin Relatins at the A. James Clark Schl f Engineering at the University f Maryland (UMD). Ms. Schwartz is a bard member f the Netwrk f Academic Crprate Relatins Officers (NACRO) and has extensive experience in perfrming arts management including tenures with the Baltimre Symphny Orchestra, Jhn F. Kennedy Center fr the Perfrming Arts, Seattle Symphny Orchestra, and Trnt Symphny Orchestra.
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