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A fascinating non-profit merger, supported by Beyond Business, consultants to businesses and non-profits.
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B hAMerger of Value and Values
Better, togetherA Merger of Value and Values
A unique example of fita non‐profit merger
in Israel
The backgroundg
1.7 million people live in poverty in Israel (over 700,000 are children).Most of these are suffering from food insecurity. Current levels of support for the food insecure reach only a small proportion of those affected.
Over 350 non‐profit organizations provide food to the needy inOver 350 non profit organizations provide food to the needy in Israel. These organizations operate independently with no overall coordination and compete for resources and available food. Most
i ti h f d t l th d t t il iorganizations purchase food to supply the needy at retail prices.
It was apparent that leadership was necessary , to create more efficient and more effective support for the food insecure. This could be done by
merging resources and creating a d i b ll i inew, dynamic umbrella organization.
The merger 1.1.2010g
Leading and largest source of food anddevelopment support for non‐profits inp pp pIsrael, dedicated to alleviating foodinsecurity.y
Central food h i d
Food rescued l i f purchasing and
capacity buildingand gleaning of
agricultural fields
Table to Table : the food rescue partner
Established in 2003 by Joseph Gitler who served as Chairman and CEO Volume of food Primary operations: • Food rescue from Catering Services and other cooked food suppliers.
sourced:over 12 million lbs
• Gleaning of fruit and vegetables from agricultural fields.
• Collection from Food Companies of food surplus
over 12 million lbs in 2009, distributed to over 170 non‐
or unsalables.
Resources: • 60 salaried staff approximately 600 regular
profits of all types all over Israel supplying h f d i• 60 salaried staff, approximately 600 regular
volunteers, and over 50,000 occasional volunteers per year.
• Complete logistics infrastructure including
the food insecure population.
Complete logistics infrastructure including warehousing, trucks and equipment.
Leket ‐ Israel Foodbank : The food purchase partnerp p
Volume of food Established in 2007 at the initiative of the Forum to Address Food Insecurity in Israel
purchased:over 4 million lbs
y
Primary operations: • Central purchasing operation for food non‐profitsN t iti l t i i d f
in 2009 at a value over $3 million of
• Nutritional training and awareness programs for non‐profit agencies
• Food safety guidance, audits and support for non‐profit agencies (mainly) dry foods
on behalf of 77 non‐profits of all types
profit agencies• Capacity building for non‐profits (supplying refrigerators, storage equipment etc)
profits of all types all over Israel.
Resources:• 3 salaried staff, with no regular volunteers, using outsourced logistics and supporting functions.
Why the merger made sensey g
• Shared vision by the leadership of both merger partners.y p g p• Common overall objectives and values by both merger partners.
l i i i ll i f d i i• Complementary activities to alleviate food insecurity.• Ability to share infrastructure and resources, delivering logistics and overheads economies of scale and savingslogistics and overheads economies of scale and savings.
• Greater presence and leverage with food suppliers and food donors.
• Stronger appeal to donors due to higher levels of efficiency.• Stronger voice for advocacy.
Full service integrated operationg p
• Logistics infrastructure
• Improved environmental impactimpact
Agricultural Gleaning Purchasingg
• Capacity
Packaged foods
Collection
Meals Rescue
• Advocacy• Capacity Building, Nutrition and Safety support
Preparing the mergerp g g
• Due diligence and strategic review of both organizations :• Mission and Values, Strategy and Goals• Structure and Processes• Structure and Processes• Stakeholders• SWOT• Interviews with Board members and all key people in both organizationsInterviews with Board members and all key people in both organizations
• Agreement of goals, structure and people• Board involvement in creating new Vision and Mission statementsBoard involvement in creating new Vision and Mission statements• Selecting the right people • Internal meetings with all departments to review all core activities• Development of Scorecard of key metrics and detailed workplansDevelopment of Scorecard of key metrics and detailed workplans
• Agreement of merger process and timetable
NB: Due diligence and strategic review prepared by external consultant, who supported theNB: Due diligence and strategic review prepared by external consultant, who supported the
merger process.
First stage merger plang g p
Initial Learningsg
• Ensure alignment and clarity of leadership of both organizations
• Select people carefully – maintain continuity as far as possible but be aware of up‐Select people carefully maintain continuity as far as possible but be aware of up
skilling requirements.
• Listen to EVERYONE – make balanced decisions after hearing all views.g
• Do what’s right – don’t let ego and personal interests get in the way.
• Align merged team around common vision and common goals.
• Manage the process – someone has to have a finger on the pulse
• Develop stretch goals, clear metrics and a reporting process.
• Ensure all communication materials are prepared early.
• Excite external stakeholders with new possibilities.
• Keep listening. Keep moving forward.
It’s all about people !p p
• Make key decisions quickly and deliberately: • Involve many in discussions, but ensure decisions are made quickly and efficiently with a
ll “ b ” f d b d k ffsmall “cabinet” of active Board Members and key staff.
• Align the people:• It is important to define a new marketing language and speak with “one voice”.• This applies to all members of merged organizations, even if one was the dominant merger partner.
• People need to be coached and mentored to ensure alignment with the new message.
• Communicate:• Constant, open communication to all internal and external stakeholders – staff, donors, food non‐profits, farmers, food suppliers etc.
• Involve volunteers: • Volunteers are important and must be involved in the planning process.• Volunteers are harder to involve as they are not dependent on the organization for their
l ff l d b l l blsalary as are staff employees, and may be less available.• It is important to retain the spirit and drive of all the people
Heading for a better future, together
• Better reach: Increase meals provided via Leket Israel to the food insecure from 10 million toIncrease meals provided via Leket Israel to the food insecure from 10 million to
over 30 million meals per year in the next 5 years.
• Better leadership:Better leadership: Use food support as a basis to leverage other social benefits including educational
activities, community empowerment programs and more.
• Better influence: Stronger advocacy regarding government policy on food insecurity and poverty.