Merge or converge?

One in 12 infrastructure organisations say they are likely to merge with other groups in the next two years, according to the findings of a recent survey by NAVCA. Matthew French from 3VA, an organisation which has been formed from a convergence of two infrastructure bodies in East Sussex, offers 3VA’s perspective on the process and some advice for other organisations considering a similar route.

3VA was born in November 2009, following the convergence of two organisations: Eastbourne Association of Voluntary Services (EAVS) and South Downs Council for Voluntary Service (SDCVS). It was felt that one organisation would be able to deliver a more consistent service across the local area that the two groups previously worked across, which spanned two districts and one borough of East Sussex. A larger infrastructure organisation would also be able to bid for bigger contracts and would be a louder voice for the local voluntary and community sector.

Convergence or merger?

The term convergence is significant as we felt it conveyed the more natural process of two groups coming together; as opposed to merger which implied an enforced change for one or both groups. EAVS and SDCVS had already been delivering services in partnership across the Wealden District of East Sussex following the closure of Wealden Federation of Voluntary Organisations in 2006, and their aims and services were very similar. So as the two groups were already collaborating, we saw convergence as a logical and organic next step.

Consultation

The two organisations converged only after a lengthy consultation period involving staff, trustees and members of both organisations, an Emergency General Meeting (EGM) of both groups’ members, and final approval at the joint Annual General Meeting.

The consultation period raised a number of issues that needed to be overcome before the groups could progress to convergence. Among these obstacles were concerns raised by member groups at the EGM that convergence would lead to less support in some areas of the county. This issue was resolved with the promise that any new organisation would maintain service delivery locally, which has been achieved through developing a single management and back-office structure with local outreach officers.

The main priority for 3VA from its inception was to ensure that support for local voluntary and community groups did not drop below pre-existing levels, and ultimately that it improved.

Logistics

3VA officially came into being with the approval of the new organisation’s constitution and registration with the Charity Commission and Companies House. It was actually not until this point that much of the hardest work of the convergence process began.

There were a number of urgent practicalities that needed to be resolved, including aligning the conditions of staff contracts, amalgamating all policies, business planning, re-branding, integrating ICT and merging all budgets and financial processes.

The merger also created some obvious duplication and inconsistencies in service delivery, so we launched an organisational review to restructure the delivery of services, which took 12 months to complete. The review included looking at existing staffing levels and finding roles for all members of staff within the new structure. Nowhere was the importance of regular, open communication more apparent than during this process of the organisational review, consultation and implementation.

In hindsight 3VA would also have benefited from an official launch event and targeted marketing in its early days so that the new organisation was quickly recognised as the place for service users to go for support.

Overcoming challenges

The recently documented difficulties encountered by a proposed merger of seven infrastructure bodies in County Durham highlight the potential challenges of merger. All parties must be in agreement with the way to proceed (even with only two organisations involved this is no small task), and the amount of work involved must not be underestimated. Though 3VA faced a challenging birth, the end result is better support for our service users – which has to be the ultimate goal in any merger of third sector organisations.

Find out more

3VA supports and develops the voluntary and community sector in Eastbourne, Lewes District and Wealden. We do this by helping new groups to set up, find funding, improve their governance, and by providing training. We also provide networking opportunities that enable groups to share experience and expertise, and support the sector to have a say in policy and local decision making.

Having successfully navigated the convergence process, 3VA is well placed to offer a consultancy service and other services to any other voluntary organisations considering merger. Visit the 3VA website for more information.

For more advice

NCVO has a wide range of advice and guidance for organisations considering merger. You might also like to read ACEVO’s 2010 publication, ‘A Guide To Mergers For Third Sector CEOs’ (PDF, 800KB) and NAVCA’s case study (PDF, 672KB) of 3VA as an example of a successful merger.