A Memorandum of Understanding (MOU) is an agreement between two or more parties which outlines services to be exchanged and actions to be performed within a specific period of time. This agreement is used as a tool for facilitating effective collaboration and linkages and acts as a commitment by the parties to achieve a specific outcome. The MOU also helps solidify partnership among multiple agencies.
MOUs are beneficial for several reasons. First, they help build a more cohesive network and ensure a minimal level of services. They also provide documentation for existing partnerships. MOUs can also help expand services, identify and facilitate referrals, and make follow up on referrals easier to carry out.
Despite the benefits of the MOU, there are also challenges to the actual MOU process as well. For instance, a lack of understanding of the purpose and benefits of an MOU may exist among one, or more, parties. The compilation and crafting of language for the MOU may also be a difficult process. In addition, all parties must “buy-in” and agree to the terms of the MOU, which may take multiple rounds of negotiations and updates. Other challenges include disagreement over the scope of the work outlined in the MOU, funding restrictions, staff turnover, and turf issues.
In order to move forward and get past the challenges mentioned above, the best way to address issues is to negotiate.
In the case where a lack of understanding of the purpose and benefits of the MOU exists, it is helpful to explain that the MOU is not a contract and includes semi-formal documents that show how multiple organizations working together are capable of leveraging resources. Also, it is helpful to explain why two or more parties should work together and how the linkage can benefit all parties.
When focusing on the challenge of turf issues there are several steps that may help proceedings move forward. The first thing to do is establish a relationship with the other party(ies) and focus on reaching out to the other organization(s) at the senior management level. Also, offer to share anything that may provide aid in service mutual target populations and invite the other organization(s) to participate in a special event. Then, the organization can be approached about sharing resources and tools, and, even if a linkage agreement is not possible at the present time, continue the relationship with the other organization.
MOU language is also a challenge, so it is important to be flexible with language so that all parties are comfortable with the way things are included and said in the MOU. Funding restrictions may put strain on a linkage and local policy makers and funders may be called upon to help re-assess current restrictions in order to find ways to promote linkages between organizations.
To avoid minimal support and buy-in from management and staff, all levels of staff should be included and involved from the beginning. Support from management, input from staff, and talking to the staff at the other organization(s) can help develop and ensure the successful formation of the MOU. It is also necessary to continually keep everyone involved informed so that they feel invested in the outcome of MOU negotiations.
By renegotiating roles and responsibilities of all involved parties, disagreement over the scope of work may be avoidable. Also, staff turnover is preventable through the assignment of titles to activities specified in the MOU.
The formation and existence of a MOU may present challenges, but the correct approach to issues can help ensure that MOU acts in more beneficial ways for involved parties. The MOU describes the exchange and provision of services and/or resources among parties and lays down parameters of the linkage of parties. This agreement also helps to explain any protocols for communication, information exchange, reporting, maintaining confidentiality, and modifying/terminating the agreement. Through universal involvement and successful negotiations, a MOU can act as a beneficial agreement that joins parties together in order to achieve a specific outcome.