Balancing unity and diversity in a not-for-profit inter-organizational partnership through lateral accountability mechanisms

Purpose: This paper examines how lateral accountability mechanisms may be used to address the unity–diversity tension in a large not-for-profit (NFP) inter-organizational partnership governed under a lead organization model. Design/methodology/approach: A case study was conducted in the New South Wales Settlement Partnership comprising 23 NFP organizations providing settlement services for migrants and humanitarian entrants. Multiple data sources included semi-structured interviews, proprietary and publicly available documents and observation. Findings: The paper demonstrates (1) the usefulness of a strength-based approach that the lead organization adopts in enacting lateral accountability mechanisms, which enables a balance between unity and diversity in the partnership; and (2) the capability of the lead organization governance model to address the unity–diversity tension. Research limitations/implications: The paper (1) identifies the importance of a strength-based approach in implementing lateral accountability mechanisms to address the unity–diversity tension; and (2) challenges prior research that advocates the network administrative organization governance model in addressing the tension. Practical implications: For practice, the paper identifies a suite of lateral accountability practices designed to address the unity–diversity tension. For policy, it provides confidence for government in promulgating the lead organization governance model in “purchasing” public services. Originality/value: The paper demonstrates how lateral accountability mechanisms may be used to provide a balance between the objectives of preserving and leveraging the benefits of partner diversity and achieving unity. The strength-based approach (used in enacting the accountability mechanisms), while having a history in psychology and social work research, has not been recognized in prior partnership accountability and governance studies.