Building a Strategic Alliance to Save a Local Institution

Mission-focus informs board member’s swift decisions

by Tammy Noteboom, The Village Family Service Center

Michelle Powers’ laser-like ability to cut to the core of her responsibilities as a steward of Nokomis Child Care Centers has served the centers’ children and families well over the years.

Today, Nokomis operates two child care centers as a program of Alliance for Children and Families member The Village Family Service Center, Fargo, N.D., but that wasn’t the case several years ago when Nokomis faced the real possibility of closing its doors for good. Up against a variety of financial hurdles, sometimes director-level staff would even hold their own paychecks until the money came in to clear them.

By 2004, Nokomis faced a critical fork in the road. As a member of the board of directors at the time, Powers was a vital member of the team that brought Nokomis and The Village to the table to discuss a merger that would improve business practices in a way that would benefit both agencies and the community.

While providing traditional care in a nurturing, safe, and stimulating environment for families with the ability to pay, Nokomis also fills a need for families with both financial and emotional special needs. While filling this need is important, it is also the rub which led Nokomis to severe financial challenges every month. Jane Greminger, current director of Nokomis Child Care Centers, says it was a daily worry to just pull the dollars together to make payroll.

As an active discussion participant, Powers helped steer the group through the uncertainty and fear which accompany most merger talks. Through it all her primary consideration was always—and still is—“How do we best serve the kids we’re serving?” and also, “How do we continue to exist for the kids who need us in the future?”

Financial Sensibility, Mission-Focus are Key

	Michelle Powers interacts with children attending Nokomis I Child Care Center, one of two facilities operated as a program of Alliance member The Village Family Service Center, Fargo, N.D. Powers is a member of the board of directors at The Village, and as a member of the Nokomis board in 2004, she helped Nokomis and The Village merge.

Powers followed her father onto the Nokomis board—both of whom have a special family tie to Nokomis Child Care Centers. Powers’ sister, Margy, who is mentally handicapped, has two children who both attended Nokomis in the past.

“Without Nokomis,” Powers says, “Margy would probably have had to give those children up. The Nokomis staff literally helped her raise those kids. Nokomis helped us know that Margy was doing a good job and that everyone was safe.”

This family tie gives Powers a special zeal for the mission of Nokomis, and brings intensity to her decision making. While she advocates for due diligence in getting all the facts, she is quick to move to decisions, especially if it means more children can be served.

Never was this more apparent than in 2004 when the Nokomis board approached The Village about partnering.

Gary Wolsky, CEO/president of The Village Family Service Center, remembers the situation well. “The board of directors called and they wanted to visit because Nokomis had a history of losing executive directors—six executives in seven years—and they had a chronic problem with money. As a million-dollar-a-year outfit, they weren’t large enough to have the supports nonprofits need these days: a strong business office, marketing, fundraising, etc.”

Powers’ financial sensibility and connection to the Nokomis mission led her to support a merger between Nokomis and The Village. “It made sense to merge with The Village for the financial stability that infrastructure ensures, that backbone of support,” she says. “In this day and age, many nonprofits are going to have to start conglomerating because we just can’t support all of these small nonprofits.”

Some Nokomis board members were hesitant about merging because of concern about loss of identity. However, Powers’ continued focus on providing for the kids who need Nokomis services made her feel differently.

“I felt like we could work with The Village and still maintain our identity,” she says.

Communication, Active Participation Promote Success

Once the merger concept was put on the table, The Village and Nokomis staff conducted an exhaustive study of the child care centers and prepared a report to present to both organizations’ boards. The report included descriptions of Nokomis programs, finances, daily operations, business practices, fundraising activities, personnel, and facilities.

In addition to details about current activities in each of these areas, the report included recommendations for actions to be taken both before and after the proposed merger.

While the boards were making final decisions and handling the legal aspects of the merger, The Village leadership team, along with members of the Nokomis board, held meetings with Nokomis staff to discuss what the merger would mean for them. The meetings answered a variety of questions: Would a merger lead to layoffs? How would the policies change? How would Nokomis maintain its identity?

Powers attended the majority of these meetings and says, “The Village did a wonderful job of easing the minds of Nokomis staff. We were concerned about the staff leaving but we retained 95 percent of the staff through the merger.”

Wolsky says that because of all the open communication, “The merger was absolutely seamless. By the time we pulled the trigger we had talked about everything we needed to talk about.”

As part of the merger agreement, Powers, who was the Nokomis board president when the merger was finalized, joined The Village board.

Wolsky was pleased with her presence on the board and her ability to make a smooth transition. “Michelle came on board representing Nokomis. As the months and years have gone by, she has become as passionate about the other 70,000 people we serve as she is about the Nokomis children and families,” he says. “Michelle is the epitome of a great board member: passionate, bright, financially supportive, and willing to be decisive. All nonprofits should be so richly endowed with such board commitment.”

Powers adds, “Joining The Village board has opened my eyes. I am on the program committee and every month we review one Village program. Whoever is in charge of that program comes in to discuss how it’s operated, the good that comes of it, where it is struggling, and the program finances. This gives us an opportunity to know where the need is and maybe brainstorm a way to help that need. 

Learn more about The Village and Nokomis Child Care Centers through the organization's website. 

Tammy Noteboom has worked at The Village for 25 years and currently serves as director of communications. She earned a bachelor’s degree in university studies, with a focus on journalism, from North Dakota State University, Fargo, N.D.

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