Smart Partnership in Contracting: Thriving in a Period of Intense Policy Uncertainty

The smart partnership framework introduced in this article is derived from extensive, on-site interviews with nonprofit and public contract managers conducted in several grounded research projects between 2011 and 2015 and from the research literature on contracting. The framework demonstrates the continuing explanatory power of resource dependence theory that disentangles the formidable influence of the public policy environment on organizational action. It is intended to provide a coherent guide for practice by enabling nonprofit managers in the social services field to navigate the current intense environmental uncertainty in which cross-sector contracting relationships between government agencies and nonprofit organizations are embedded. By providing an accessible way to understand an extraordinarily complex set of inter-organizational dynamics, the model offers a research-based definition and clear visualization of what it means to be a smart partner. It highlights the necessity of understanding the norms, expectations, structures, processes, and culture within which sector counterpart contract managers operate. Fundamental to the range of managerial strategies that the framework calls for is the need explicitly to attend to relationship building, to patterns of variation in relationships over time, and to their probable consequences. The integrative model consists of three inter-related organizational competencies and a number of secondary competencies. Competency 1: understand the dynamic nature of contracting relationships; secondary competencies: recognize predictable variations in relationships; comprehend the importance of multiple institutional logics. Competency 2: develop and sustain capacity for strategic adaptation; secondary competencies: build external and internal learning capacity; discern power shifts in inter-organizational relationships; maintain capability for strategic repositioning. Competency 3: participate proactively in shaping policy change; secondary competencies: attend to relationship development and nurturance; build trust and credibility.