post brexit associations

Post Brexit Associations

The Brexit vote in the United Kingdom along with modest and subdued global economic growth will continue to affect corporate decisions on external costs not related to top line growth and operating performance. Associations in a number of instances are increasingly more relevant, and have strategic objectives closely aligned with the industries they serve. These organizations also have the characteristics that define Post Brexit Associations.  However, in a rapidly evolving global market, how aligned is your association in order to help your members and their industries meet new challenges?

active innovation

Data Fuels Active Innovation

In a growing trend, Association CEO’s and their Board Members are utilizing economic data as important context for their strategic deliberations. Jobs data, Housing StartsInstitute for Supply Management Index (ISM), Oil Prices, Consumer Spending, and U.S. Dollar Performance against other currencies is a more frequent topic at Association Strategic Planning Sessions. Although Strategic Plans cover 3 year windows, Boards encourage their CEO’s to be flexible and to use trend data to meet shifting demands to help their industries. In essence, economic data fuels active innovation at Associations.

funding industry innovation

Funding Industry Innovation

Anemic economic performance is unfortunately becoming a mainstay in the U.S. economy. The release of the 3rd quarter GDP numbers where only 1.5% growth was reported is another reminder of how much the ground is shifting for associations. Companies will likely view membership through an even narrower prism of operating margins if economic conditions weaken further.  Associations who are Funding Industry Innovation can position themselves as essential partners in helping members achieve business outcomes.

Association Innovation Delivers Growth

Association Innovation

Association Innovation Delivers Growth

What capabilities should your association have in order to deliver revenue growth and strong retention? In the Strategic Member Engagement Survey, Associations & Professional Societies reporting upward 3-year operating results are far more likely to have a very high level of board understanding and strategizing about the business and professional outcomes members seek, and actively engage members in creating new solutions. For IARW, the International Association of Refrigerated Warehouses (Global Cold Chain Alliance Partner), these new and innovative capabilities are serving as an accelerant to revenue growth and retention.

Return on Member Engagement

“Together we achieve a return on member engagement” reflects a six month strategic planning mantra employed by Corey Rosenbusch, President and CEO, GCCA (of which IARW is a key partner) and the Association’s Board of Directors. Collaboratively they determined their industry’s strategic business outcomes and developed an innovation focused strategic plan to drive worldwide top line growth.

Throughout the process board members keenly focused on capabilities and priorities they wanted from their industry association. Their Board Task Force surfaced opportunities to broaden strategic alliances that will extend the industry’s visibility and global reach.

Business Outcome Focus Drives Revenue Growth

Identifying member industry “up-at-night” issues and positioning IARW as a strategic partner to drive business growth is already showing results through recovering former member dues, membership and sponsor growth, and a potential windfall through a new Global Cold Chain Expo to be held in Chicago in 2016.

Association Innovation Delivers Growth

Although Rosenbusch understood the risks of utilizing a different planning process he focused on a different path based on innovation and member business outcomes. To date he reports over $200,000 in new revenue and sees opportunity to grow substantially more and help the industry IARW serves achieve its business growth objectives.

Association Innovation Delivers GrowthFree eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com.

Disruptive Associations

Disruptive Associations

 

Disruptive Associations

A snapshot by the Conference Board of both the U.S. and Global Economy doesn’t necessarily paint the rosiest of pictures  GDP growth is projected at 2.9% in the United States while economic performance in the rest of the world will be shaped by “volatility.” In what appears to be a low growth scenario, how and to what extent can Associations be transformed into market disruptors that support market growth?

Traditional 

Be assured that the current slow growth environment or an economic downturn will inflict significant pain on your revenues and membership at some point. Organizational Association balance sheets took significant hits in 2008 and 2009, and there little reason to think otherwise in the current environment. Knowing this should CEO’s maintain traditional Association product and service offerings or should they analyze strategic alternatives?

Market Disruption

New products and services penetrating the marketplace have disrupted the U.S. economy from the start of the Republic. At each turn throughout our history, new entrants reshaped a dynamic marketplace. With big data, predictive analytics, and emerging technologies new companies are in several instances upending the marketplace and driving innovation and boosting higher levels of productivity.

Tough Questions?

Can an Association go beyond traditional roles and provide nontraditional solutions to industries in a slow growth environment? Are boards and volunteers ready for their Association to position and help drive their industry positioning and growth in domestic and international markets?

Competitive Threats

Since the great recession for profit firms are aggressively developing innovative solutions and products to more immediately help companies address business challenges and grow revenue. Why can’t your association play the same role?

Disruptive Associations

Disruptive AssociationsAt a time of unprecedented change your Association can become a Market Disruptor and position your members for success in a slow growth world.

Free eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com.

managing teams through crisis

Is Your Association Inside Out?

Recently reported economic expansion reflects only one part of an evolving and complex business environment. Cyber threats, disruptive technologies, innovations and social media, an aging workforce, and talent gaps weigh heavily on corporate bottom lines. According to a McKinsey December 2014 Global Survey, “geopolitical concerns remain paramount as a risk to growth for executives whose optimism for the global economy in early 2014 has faded over the course of the year.”

member outcomes

Member Outcome Focused Training

In a climate of disruptive innovation and tight operating margins where can companies look for education and training solutions? Quite simply it’s Associations, as they have the ability to facilitate new solutions to address evolving member business outcomes. While the traditional Association model “pushes” out training and education programs, innovative organizations structure these products to help members achieve their business outcomes.

Does Your Association Outdistance For Profit Competition?

for profit competitionDoes Your Association Outdistance For Profit Competition? At a time when for profit competitors pursue convention & conference space once owned by Associations, CEOs determined to thrive are reinvesting & sharpening their organizational competitive edge. In one case, PMMI www.pmmi.org, the Association for Packaging and Processing Technologies, an organization whose principal source of funding comes from trade shows, takes nothing for granted. According to Chuck Yuska, President & CEO, the board & staff team always compete to maintain their “Convening Authority” mantle.

Strategic Partnership Emphasis

Securing market alignment is key for PMMI. Members & staff collaborate on annual goals, objectives, and measurements for the upcoming year.

Yuska emphasizes “we want to help our members be more competitive, give them the tools & information to grow their business, minimize their risks and obtain new business practices that help them become better companies and be more profitable.”

Address Member Pain Points   

Successful Associations like PMMI remain connected with member pain points, & provide business tangible solutions to:

1. Help members succeed. Support member global market needs, produce trade shows & conferences that studiously link buyers & sellers, members, & their customers.

2.  Use Customer Feedback Loop. Utilize exhibitor, member, & customer analytics & feedback to continuously improve takeaway value for all members & show participants.

3. Maintain High Relevance Factor. Accelerate organizational visibility through traditional & social media, direct mail, and industry channels.

4. Reinvest. Deliver the next “new thing,” and expand opportunities for members & customers.

Does Your Association Outdistance For Profit Competition?

for profit competitionDespite $2 million net operating performance in 2012 & 2013, and 7% operating growth and 95% retention in 2013, PMMI looks to consistently enhance its competitive position.

What’s next for PMMI? Expansion into regional trade shows with Pack Expo East www.packexpoeast.com

For a free copy of the “Accelerating Strategic Member Engagement” eBook, request your copy at www.potomaccore.com.

for profit competition

Association Develops $1.1 Million Non Dues Revenue Stream

non dues revenueAssociation Develops $1.1 Million Non Dues Revenue Stream. Data and effective research can help keep organizations on track to provide high impact non dues products & services which advance member business interests. Just ask Victor Parra, President & CEO, United Motorcoach Association who launched www.busrates.com, a lead generation platform that makes their 900 plus members more competitive.

Data Driven Research

non dues revenueThanks to the utilization of environmental scans and industry assessments, UMA  board leaders & members identified opportunities for their firms to increase value to their customer base. The addition of www.busrates.com makes it easier for buyers to find charter buses that best suit their needs. Today, both domestic & Canadian DOT registered bus companies utilize the platform.

In this instance, UMA’s data driven approach highlights the importance making these connections before the Association’s dollars are invested.

Results matter:

  • The web based platform drives a daily average of “150 requests for quotes.”
  • More than “130,000 group planners outside the U.S. visiting the site.”
  • 100,000 plus travel planners visit each month to identify and secure tour bus operators.

Wanting to extend its member reach globally, UMA also partnered with the National Travel Association.

ROI or Distraction

Member insights and marketplace intelligence can lead to the establishment of “core connections.” For instance, the platform measured against the core connection definition is a valuable member resource because it’s linked to established UMA business member priorities.

The fact that this offering provides $1.1 million in non dues revenues for UMA confirms ROI and, reinforces the strength of the core connection to member business interests.

Association Develops $1.1 Million Non Dues Revenue Stream

With boards insisting upon new revenue growth, a comprehensive data driven & core focused approach could uncover the right opportunity for an organization.

For a free copy of the “Accelerating Strategic Member Engagement” eBook, request your copy at www.potomaccore.com.

non dues revenue

1 Industry Association’s Approach to Non Dues Revenue Strategy

1 Industry Association’s Approach to Non Dues Revenue Strategy.  Although Boards look for non dues revenue, they in some cases encourage staff to seek industry collaboration as a part of the effort. SPI: The Plastics Industry Trade Association plasticsindustry.org , developed an approach that  accomplishes both of these objectives.

Collaboration, Industry Advocacy and Revenue Growth

non dues revenueLooking to increase sector collaboration and increase revenues, William R. Carteaux, SPI President & CEO, established a B2B collaborative called resinGear resingear.com. Through this effort, SPI and other plastics related organizations sell their industry’s private line of corporate, industrial, and promotional apparel. This strategic initiative is helping the plastics industry organizations:

  • Achieve industry collaboration and cooperation which had previously been  ineffective
  • Elevates the segment’s brand among clients and the general public
  • Demonstrate their commitment to a “zero waste” threshold in domestic landfills
  • All dollars generated help the industry associations advocate a pro North American Plastics Jobs agenda at all levels of government

Building Upon Core Strength with “Adjacency Expansion”

Organizations like SPI reinforce core & profitable strength by moving into “related segments or businesses,” in order to grow additional revenues. Authors Chris Zook and Jim Allen articulate a similar approach in “Profit From the Core, Growth Strategy in an Era of Turbulence” copyright 2010 Bain and Company. Applying this methodology, Associations and Societies now have the ability to leverage existing customer relationships while they build upon their competitive advantage in a new market area.

1 Industry Association’s Approach to Non Dues Revenue Strategy

Some of the organizations participating include: the Plastics Pipe Institute plasticpipe.org, the Western Plastics Association westernplastics.org, the Vinyl Institute vinylinfo.org & the American Composite Manufacturers Association acmanet.org.

All nineteen plastics Associations are eligible to participate, and Carteaux indicates that he already sees improved industry collaboration.

For a free copy of the “Accelerating Strategic Member Engagement” eBook, request your copy at www.potomaccore.com.

non dues revenue