From transactional to transformational: elevating corporate partnerships

More and more we are seeing transformational partnerships being showcased across the charity and corporate landscape. But – for many – they seem beyond reach, as charities continue to grapple with moving from transactional relationships to more strategic, long-term partnerships. Transformational partnerships are in reach for charities of all sizes but there are key ingredients that make such a partnership more likely. This article explores what those characteristics look like and how they manifest themselves, including case studies that highlight what others have achieved.

Firstly, it is important to differentiate between a transformative and a strategic partnership. These types of relationship are not for every organisation, but it is helpful to set the stage in understanding what transformation would look like for your organisation.

With strategic partnerships the core essence of both organisations remain the same but they find ways to exchange resources or expertise. The partnering organisations develop their strategic goals and impact over a number of years. While a transformative partnership sees the partners change who they are so they can get to the bigger goal. This may require the charity and partner changing their priorities or goals to drive this fundamental change.

Charities usually have well established and deep understanding of the root causes of the problems they are seeking to address, but they do not always have the mechanisms and can lack the broader lens that working in partnership and consortia can achieve. It is about fixing the underlying problems rather than treating the symptoms, but this requires resources, knowledge, insight and the drive to come together and transform.

Charities are very often seeking to address complex and difficult challenges, which – increasingly – stakeholders are realising can only be transformed by working together in partnership. The size of the charity is not a barrier as all charities have expertise and niches that mean they can have a seat at a table where transformation is being explored in their causal area. The key factor is having the skills and tenacity to work in partnership while leveraging and amplifying the voice of the charity in the right places, aligned with the right actors to drive transformation.

Some things to consider when exploring transformational partnerships:

• You need a common goal, but you also need to agree on how you will reach that goal. An implementation plan can help guide that thinking but you need to ensure your values align. Look at your current partnerships first but also look outside to consider those companies and other actors who share and align with your mission and values.

• You need to invest the time to build the relationship. These types of partnerships are grounded in trust which cannot be gained overnight. Getting the right people to the table is critical and although they are likely to be some of your busiest people, they need to be willing to step up and truly engage.

• These relationships are not about just financial support – they are much more multi-faceted. There is significant value in the non-financial support that is borne from such a partnership. Transformational partnerships rely on deep relationships and clear understanding of what is needed to make significant impact together, rather than just creating a new transaction.
• Before an external transformational partnership can be achieved, a transformation is quite often required internally to ensure partnership is at the core of the organisation’s new strategy. A deep understanding of what working in partnership means and an ability to embrace the ambition borne from embarking on a transformational partnership is an imperative.
• Because of the time it takes to develop, there is a balancing act between investing the time and effort to develop a relationship and identifying when the scope to drive a transformational partnership is lacking. However, creating the environment that motivates a partner to give more support than they previously anticipated, building trust and a deeper connection can help to push through challenges and conflicts that expose the potential and appetite to go beyond transaction and strategy.

There are numerous transformational partnerships at local, national and global scale, all playing a role in transforming and addressing fundamental challenges facing our world. Here are just few case studies:

• The Orchard Project is a great example of a small charity (with 18 employees raising circa £665,000 annually), which developed a transformational partnership with Heineken UK. Over the last six years the organisation has been propelled into the national spotlight and has taken significant steps towards realising its vision to ensure that every household in the UK’s towns and cities is within walking distance of a community orchard. The partnership has created and restored more than 200 community orchards, engaged 38,000 people and contributed to eight sustainable development goals.
• Tesco and WWF have partnered to reduce the environmental impact of Tesco’s food supply chain. The partnership has helped Tesco to reduce its greenhouse gas emissions by 20% and its water consumption by 10%. Tesco is not WWF’s only food industry partner – however the level of integration between the partners is exceptional. The organisations co-operate in their day-to-day operations, all the way up to regular interactions at CEO level, making the speed at which they have driven change substantive. The sustainable basket metric, which acts as a barometer to track the overall environment impact of the supermarket, with Tesco’s pledging is to halve its overall impact by 2030, sets the stage for driving change across the sector.
• At the beginning of 2020, UNHCR and UNICEF agreed on an ambitious Blueprint for Joint Action. This initiative represented a bold step towards realising both agencies’ joint Global Refugee Forum (GRC) pledge to stand by refugees and work with governments to ensure the inclusion of refugee children and their families in national systems and plans. Focusing on three priority areas – education, WASH and child protection – the Blueprint’s transformational agenda sought to contribute to implementing the GRC and ensuring no-one was left behind, as efforts were redoubled to achieve the sustainable development goals (SDGs), including gender equality. The ambition set out five accelerators where urgent action was required and called on all actors to join forces to realise the Blueprint’s transformational agenda of refugee inclusion. They are working with other NGOs such as International Red Cross, governments, businesses and grant makers. This is an example of a global initiative that brings together a wide range of different actors to drive systemic change over the long term.

According to a recent survey by the Charity Commission for England and Wales, 72% of charities believe that corporate partnerships are essential to their success. However, only 45% of charities have a formal partnership strategy in place.

Transformational partnerships can be a powerful force. By working together, charities and corporations are clearly demonstrating that, through partnership, they can achieve more than they could on their own.

Michelle Sorrell, Associate Senior Consultant
October 2023

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