Are your board members laser focused on their mobile devices during board meetings? Is there a sense of restlessness at your executive committee and full board meetings? Odds are high that your board members are either preoccupied with business challenges or just plain bored with discussions on Association strategies. One way or another, they might be tuning out and if they are, your board meetings might be perceived as association “bored” meetings.
Association Outside In Case Study
If your members face top line growth challenges, generational transfer issues, and evolving consumer expectations, how can your Association support member success? Through a strategic planning process that transforms your organization from an inside out focus to an outside in focus. The process starts with a highly engaged and strategically focused board and concludes with a strategic plan amplifying industry growth objectives.
Association Innovation Delivers Growth
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.
Free eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com.
Driving Member Business Outcomes
Driving Member Business Outcomes
Can an Association transform itself and become a strategic business partner to the very members they serve? The International Association of Refrigerated Warehouses (IARW) did as much through an intensive strategic planning process. Seeking to understand their impact on their member business outcomes, the Association initiated the process with Board Interviews and a Member Impact Survey.
Forward Looking Data
The Member Impact Survey is forward looking by design and focuses on desired future outcomes that members seek to address their “up at night” issues. The results also generate focused conversations among senior managers and Board Task Force Members.
The decision to move past the traditional member satisfaction survey format reflected a strategic and important departure says Corey Rosenbusch, President and CEO of the Global Cold Chain Alliance, of which IARW is a key partner.
Changing Board Perspectives
At IARW, the results shifted perceptions and thinking about the Association and how it could be utilized to actively promote the industry in key markets. (“Survey uncovers members’ “up-at-night” issues”) It also generated significant dialogue about the future of the industry while it drive culture shifts at the staff and board level.
Industry Pulse
Although the survey results played a critical role in the update of IARW’s Strategic Plan, Rosenbusch utilizes the impact survey results in member meetings and also in conversations with industry partners. The data helps him paint a picture of the industries’ key opportunities and concerns.
Driving Member Business Outcomes
The journey starting from an “inside out” focus to an “outside in” focus is nearing completion. According to Rosenbusch, “IARW is entering a new arena” and it’s one in which the Association, his staff team, and board are building a more and compelling future for their industry.
Free eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com
Stimulating Connectedness
Stimulating Connectedness. Many association executives still yearn for member “loyalty” and have traditionally sought to measure it by retention rates. What does membership loyalty mean? There are very few examples of one-stop shopping. In a knowledge economy, members proactively seek information from many sources.
People most value the things in which they personally participate. They feel more “connected” to those groups who value their personal contributions. Accelerating strategic member engagement (http://bit.ly/1g8g1J2) is about creating many opportunities and “experiences” to contribute and feel valued; something that members don’t find elsewhere.
Creating Solutions Together
Traditionally, associations focus on what they do for members. The real power of the association form of organization is facilitating the creation of new solutions to address evolving member objectives. To accelerate this, volunteer leaders and staff must create a culture of “we”.
The “We/You” Fallacy
Determining an Association’s alignment with member needs includes assessing the relationships between staff, volunteer leaders and other members. We find that most association executives view this interface through a lens of “we/you”. The evolving association model is all about “we”.
GCCA, www.gcca.org, the Global Cold Chain Alliance continues its transformation to a “we” focused organization notes President & CEO Corey Rosenbusch.
Strategic Member Engagement Framework©
Moving to “we” doesn’t happen overnight. It requires nurturing; “surprise and delight” if you will. Actually it is a 3-stage transition that goes from:
“We (staff & volunteer leaders)/They (outsiders)” to
“We/You” (as the member becomes a recipient of association offerings), and then strategically on to
“We” (highly engaged solution community)
Stimulating Connectedness
As members start to contribute and collaborate the relationship shifts toward “we create new solutions together”. However, if members are never effectively engaged, they remain in “we/you” relationships with the association.
Free eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com, www.icimo.com, and www.verticalleapconsulting.com.
ROI TO R.O.M.E.
ROI TO R.O.M.E. (Return on Member Engagement)
At the majority of associations, member engagement takes a back seat to fighting fires and meeting budget expectations. Over time, member dissatisfaction, poor retention, or weak membership growth can prompt boards to ask the tough questions.
Proactive
In several instances executives are demonstrating the direct linkages between their efforts, member outcomes, and their association’s business model. They understand that corporate and individual members view their participation with associations through a very different lens than when they had relatively few go to sources for information and knowledge sharing.
Change The Conversation
People value and make contributions to the activities that help them achieve something they (or their company) value. Continually generating more activities is unsustainable; it also creates an unfocused “all you can eat buffet.”
Member Contract: Focus On Member Outcomes
Corey Rosenbusch, President & CEO, and his team at GCCA (the Global Cold Chain Alliance), www.gcca.org worked closely with their largest member to craft a 3 year member contract linking the member relationship to their strategic business outcomes. In doing so, they moved the conversation away from “here’s what you get for your money” to “here’s the power of engaging with others in your industry/profession to create new, innovative solutions”.
ROI TO R.O.M.E.
Only when board/staff engagement and member engagement are high do innovative solutions surface through a “we” collaboration. Moving to a “we” focused community is about inclusiveness and being open to the possibilities that might surface. Increasingly, associations, including the Global Cold Chain Alliance, recognize the significance of “we” collaboration and strategic member engagement (see 2/24/2014 post http://bit.ly/1g8g1J2).
Free eBook “Accelerating Strategic Member Engagement” for Association Executives available upon request at www.potomaccore.com, www.verticalleapconsulting.com, and www.icimo.com
Selling or Engagement?
Selling or Engagement? Engagement drives the association’s business model, while enhancing the association’s influence, prestige, and competitive positioning. Discussions like these can completely change the conversations away from: “what do I get for my dues?” Associations looking to grow revenues and membership and improve engaging instead of selling could better position their organizations for longer term success using this approach.
“Impact ” VS. “Satisfaction”
Quite often, associations are tracking member “satisfaction” with their offerings. “Satisfaction” surveys have the explicit connotation of “we want to know if you as a member appreciate all that we are doing for you”. Often disappointed with satisfaction survey results, associations add more and more services.
Alternatively, impact and outcome survey data allows you to set priorities and minimize the activities that no longer provide sufficient relative value. This is also an opportunity to find out how various segments of members and non members prefer to be engaged, and which other organizations are trying to meet their needs.
Member Impact Strategies
Evidence that the member impact survey and corresponding strategies are taking shape and impacting operating results and performance at different organizations. In addition, Corey Rosenbusch, President & CEO, GCCA, (the Global Cold Chain Alliance) says that his organization is shifting away from a “member satisfaction” focus to a “member impact” focus.
Selling or Engagement?
Is there any correlation between the frequency of impact surveys and 3 year business model trends? The Strategic Member Engagement survey shows that those who conduct member impact surveys annually were far more likely to report an upward 3 year trend in their operating results.
Free eBook “Accelerating Strategic Member Engagement” available at www.potomaccore.com
“Let’s Double Association Revenue in 5 Years”
“Let’s Double Association Revenue in 5 Years”
Starbucks CEO Howard Schultz once said “Vision is what you call it when others can’t see what you see.” It’s just the opposite at the Global Cold Chain Alliance, www.gcca.org where, incoming CEO Corey Rosenbusch is building a team of believers. From the Board of Directors to members and staff, Rosenbusch is developing a compelling game plan to satisfy members and double revenues.
Focused Global Alliance
The Global Cold Chain Alliance was originally founded by current President and CEO Bill Hudson. Building a unique, and aligned focus, Hudson has constructed a global powerhouse to serve the food storage and transportation industry. Services expanded from its origin of Research and Science to include: training, business development and Advocacy today.
Under the GCCA umbrella sits a group of three Associations and a Foundation: International Association of Refrigerated Warehouses, International Association of Refrigerated Transportation, International Association of Cold Storage Construction and the World Food Logistics Organization.
Financially solid, the $5.8 million entity with retention nearing 90% is poised for international expansion and revenue growth. When Corey Rosenbusch assumes the helm in 2014, his sights are on GCCA achieving double its current revenue in a five year window.
Mission Focus to Double Revenue
Rosenbusch brings leadership management, with a food industry and agricultural and international background to GCCA. His disciplined and determined focus however is on leveraging the focus of the Association’s mission to double revenue. Whether its opening new markets for his industry, developing new training products, or enhancing issue or regulatory capacity, Rosenbusch has a Core Focus.
Like many successful Associations, GCCA and its incoming CEO maintain a laser focus on maintaining or accelerating connections to the core. In each aspect of his plan, Rosenbusch links current, planned or future offerings to how his industry grows revenues and achieves its business objectives.
A critical part of the Association’s Core is relationships and knowing what really impacts their members’ bottom line.
Data Driven Strategies
For an Association with members doing business in 67 countries, Rosenbusch focuses his organization with data and metrics. The GCCA dashboard includes a concentrated member focus on their key interests and business priorities as well as their participation and engagement. Satisfaction is a high priority, so much so they plan to score member activity in the Association Management Database.
Benchmarking and profitability of his members and GCCA will also be part of the incoming CEO’s dataset.
Alignment to Double Revenue
For Rosenbusch, the Core Focus is in the strategic plan. In order to double revenue, his plan includes a performance management strategy connecting the strategic plan, GCCA’s values and specific objectives.
Challenges and Consolidation
Being prospective in his outlook, Rosenbusch recognizes the shifts within his industry. Once dominated by family owned companies, the once stable sector, experienced a wave of acquisitions. Private Equity Groups recognized the sectors asset strength and now own a considerable percentage of the food storage and transportation industry. As a result, GCCA divides its member service focus 2 ways to satisfy the needs of both segments of membership.
Strong relationships with the industry matter, but for the Private Equity owner ROI must remain visible. Implementing a nimble approach, products and services address needs for both segments of the membership.
The current dues structure is under review, as it’s a concern for Rosenbusch. As companies increase food storage space, member dues decrease. The Association derives almost 60% of its revenues from dues and an internal team is developing a solution.
Unique Opportunities
Despite challenges, Rosenbusch envisions opportunities for GCCA to grow revenues and extend its global reach.
One area of opportunity rests in the Association’s Core Focus, helping the members secure international grants from, among others, the U.S. Agency for International Development (USAID). Grants totaling $1million help the industry establish a beachhead in emerging and developing markets. Once companies are operational, GCCA is in place to provide support. According to Rosenbusch he and his team will monetize the success of these efforts.
“Let’s Double Association Revenue in 5 Years”
Successful Associations innovate as quickly as the global business cycle changes. For the Global Cold Chain Alliance’s Corey Rosenbusch, the road ahead contains both challenges and opportunities. Regardless, GCCA’s incoming CEO and his team are embracing the future as they reach for the stars.
Free eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com,www.icimo.com,and www.verticalleapconsulting.com.
Members Hire Tomorrow’s Associations
Breaking. Members Hire Tomorrow’s Associations because they have no other choice. Global uncertainty and technological advances are forcing Members to make more informed decisions on how to spend their precious time and money. Members expect their Associations to be nimble, future focused, and having the speed and foresight to help move an Industry forward. Organizations recognizing this shift are transforming from yesterday’s Associations to Tomorrow’s Associations.
Members hire Tomorrow’s Associations because they sit at the cutting edge of change and:
- In a time of political gridlock, they are perceived as increasing spheres of influence. They’re also transforming themselves into more potent and influential extensions of an Industry.
- Utilize market research to pinpoint challenges and build strategic opportunities to overcome those challenges. In doing so, they help create a more favorable climate to drive Industry growth.
- Relentlessly look for whatever comes next in their Industry.
- Seamlessly move from yesterday’s challenge toward tomorrow’s opportunity.
- See their organizations as the front line and last line of defense for an Industry.
Using relevance as their foundation, these organizations conduct research and engage boards and members to identify and address the next set of Industry challenges. They also understand the Industry’s business model from product design to marketplace, and the staff teams approach everyday as an act of invention:
Helicopter Association International – Keeping the rotors turning is all that matters for HAI. Led by Matt Zucarro, an Industry veteran, and President & CEO, the Association relishes its role as the Industry’s advocate in chief. “We don’t let anything get past us” notes Zucarro as his experienced team is ready to address any market or regulatory obstacle that will prevent the rotors from turning. Simultaneously, they aggressively promote the economic value of the Industry in meetings with legislators and regulators in domestic and international markets. The Association remains closely connected to Industry trends through insightful research and direct Board engagement.
Matt Zuccaro
Since 2005, the Association transformed itself into a well-capitalized, forward looking, and fast moving extension of the Industry. Implementing a strong bias for Industry growth, HAI annually conducts the world’s largest helicopter exposition, the HAI Heli Expo Trade show which includes business networking and technical resources that address Member business challenges and opportunities. In addition to the Trade Show, the Association delivers resources geared toward helping Members address flight and operational safety with an Aircraft Risk Assessment Tool and a Safety Accreditation Program.
The Advocacy program is the first and last line of defense for the Industry. When the FAA (Federal Aviation Administration) grounded operators due to a technical revised interpretation of regulations, HAI and their members worked successfully to speed up and streamline the exemption process. In doing so, the Industry was able to get back to work.
While addressing today’s challenges, Zucarro and his team are helping to position the Industry for the future:
- “Autonomous flight is coming, technology is going to allow it, it’s a matter of public acceptance.” HAI is working with Federal Agencies and other Associations including the Association of Unmanned Vehicles (AUVSI) to help define the future through unmanned flight.
- Although workforce shortages plague the Helicopter Industry now, the HAI team is collaborating with the Industry to build the Industry’s workforce of the future. Concrete strategies are being developed through the Helicopter Foundation to promote careers and help lead more pilots and technicians to choose careers in the Industry.
The International Sign Association – Annual Strategic Planning with its Board and 3 Steering Committees plus ongoing market engagement keep the Association aligned with the present and the future. Insisting upon transparency, the ISA team shares progress reports with Board Members four times each year. This level of market research plus Industry focused surveys, keeps the Association connected to today’s and tomorrow’s “Up at Night” challenges.
Led by Lori Anderson, President & CEO, the organization delivers business value in measurable ways:
- The International Sign Expo – Business to business networking and emerging technologies.
- Actionable Industry Research – Quarterly economic reports, wages and benefits surveys, and research that identifies the economic impact of a sign.
- Local sign code guidance – Plus legal support to help the Industry achieve sign approval.
Lori Anderson
Starting in 2013, the workforce shortage topic continually appeared in ISA’s research. Since then, utilizing an innovative digital approach, the Association is working to help the Industry educate, attract, and retain workers. Through strategic partnerships and adding skilled staff, the Association created a platform to help assess and teach skills to current and prospective workers. Though this online learning platform candidates can earn up to 15 digital badges. The strategy, since 2015, has helped students achieve approximately 7,000 badges. The workforce program is continually evaluated and updated to support the Industry’s workforce needs.
ISA also leverages its “Sign Manufacturing Day” to create student awareness of the Industry. Starting with just 8 companies and 200 students, the program now has eighty four companies participating and 3,500 students. Lori Anderson notes that “these programs help companies recruit interns on the spot.”
Health Industry Distributors Association – Leading and convening all aspects of the Industry in a Healthcare Supply Chain Collaborative. CEOs from Distributor Companies gather at HIDA to utilize this cooperative platform, brainstorm, and develop strategic solutions that optimize supply chain efficiency. The organization also incorporates Manufacturers in its market focused efforts through the HIDA Educational Foundation.
The Association is also familiar with Industry’s products and business model. Understanding member pain points through direct engagement and market research, the organization evolves as market place challenges and opportunities change.
Matt Rowan
It’s current suite of products are designed to help members stay connected to what’s new or anticipated in their marketplace: Business Intelligence on Supply Chain Strategies, Telemedicine, Market Reports, & Segmented market reports.
Through Industry focused Advocacy:
- The Association is collaborating with federal agencies to provide help during an emergency event. This will help federal emergency responders engage the commercial healthcare supply chain during crisis by centralizing key attributes of commercial medical-surgical distribution centers in an online tool.
- Successfully had 120 products manufactured in China exempted from additional import tariffs.
Matthew J. Rowan, President & CEO leads the Association.
Alison Bodor
Transforming into one of tomorrow’s Associations is no small task. Each Industry or Profession is different and making big changes could take more time. Consider starting with actionable market research and collaborative board discussions. Doing so will help build a foundation that leads to the larger transformation. For example, Alison Bodor, President and CEO, American Frozen Food Institute is leading a longer term change. Along with her team, she continually utilizes market research to inform and guide strategic discussions around food safety and Frozen Food consumption with the Board and their members. One of the near term deliverables is a new research report by AFFI and the Food Marketing Institute (FMI) titled “The Power of Frozen.” The report examines consumption drivers, purchase drivers, channel drivers, opportunities for collaboration, and shares opportunities for how companies can drive continued growth in the Frozen Food category. Thoughtful approaches like AFFI’s plant the seeds of transformational change.
Members Hire Tomorrow’s Associations
Tomorrow’s Associations including Helicopter Association International, Health Industry Distributors Association, International Sign Association, and other leading organizations including, Global Cold Chain Alliance, American Bakers Association, and the National Marine Manufacturers Association are all unapologetically getting it done for their Industries as they:
- Leverage actionable research to position Industries for new opportunities.
- Advance the innovative aspects of products to elected officials and consumers.
- Champion Industries and position them for Market Growth.
- Promote the economic impact of Industry products and services to domestic and international legislative and regulatory bodies.
- Cite how Industries increase employment and influence community quality of life, and in several cases, help to attract the next generation of workers.
Because Tomorrow’s Associations have a strong bias for action, their CEOs move forward as they see opportunities that far outweigh threats and risks. “Turn every threat into an opportunity. In order to do that you need to surround yourselves with the right talent. Take some risk in a period of uncertainty not avoid it” notes PWC’s CEO Bob Moritz. Yes, uncertainty should be an immediate call to action for yesterday’s Associations. Breaking. Members Hire Tomorrow’s Associations because they have no other choice.
To learn more about how your organization can become one of Tomorrow’s Associations click here.
Association Supply Chain Advocacy
Association Supply Chain Advocacy can be a game changer for members. By uniting the Supply Chain through Associations members can better influence the destiny of their company and their Industry in ways they could not do on their own. Getting and bringing an entire Supply Chain to the table at an Association is a heavy lift but the long term impact will make the effort yield substantial member ROI.
Association Supply Chain Advocacy is Fueled by Actionable Research
Organizing a robust data collection process that includes Associations in the Supply Chain will build actionable information. Having this research will create proactive opportunities to build a collaborative Association Supply Chain Engagement Strategy with Board, Senior Staff, and other Associations from the Supply Chain that includes:
- Comprehensive Industry Research – Supply Chain Interviews and survey research including segmented business challenges and growth opportunities.
- Industry Brainstorming – Creating new and unique activities for the Supply Chain to collaborate and create a growth focused business environment.
- Industry Planning & Roadmap – Highly focused and measurable activities that are continually evaluated by the Industry Supply Chain.
These steps build a plan that identifies the role that each Association in the Supply Chain plays in carrying out its Advocacy Strategy. Instead of a competing with each other, Associations transform into Supply Chain collaborators. In this scenario each Association in the supply chain has clearly established roles, deliverables, and accountability for Industry Advocacy outcomes.
Association Supply Chain Advocacy Equals More Concentrated Effort to Mitigate Emerging Industry Challenges
In a dynamic global economy, new impediments and opportunities will continually surface. Having an Association Supply Chain Advocacy Strategy positions Industries to more quickly and effectively respond. For example, threats in States and in local government are an increasing part of Advocacy strategies. Bringing the impact of an Industry with an Association Supply Chain accelerates response time and improves chances of success.
Recently, the Soft Drink Industry faced an onslaught of proposed Soda Taxes in Santa Fe, New Mexico and in Cook County, Illinois. An impressive advocacy strategy by the American Beverage Association helped the Industry beat back local efforts to impose new taxes that would have been harmful. Unfortunately, this is just a beginning as warning signs point to an increasing amount of challenges from State and Local government. If Associations have members who manufacture and sell products in global markets, then they too will face regulatory and product standards challenges.
Association Supply Chain Advocacy Means Doing Fewer Things Exceptionally Well
As Boards define future success measurements for Associations, it’s a safe bet that they will want fewer activities that require less time and money. Operating margins are a continual focus for Executives and demonstrating increasing levels of efficiency is something they expect. Since Advocacy is a core component of Associations (especially Trade Associations), this integrated approach will be well received. This likely means doing fewer things exceptionally well because your Association may eliminate activities not connected to the Advocacy core.
Association Supply Chain Advocacy is Already Underway
Associations are delivering direct returns on Supply Chain Advocacy through highly focused Advocacy activities:
American Bakers Association – Through the Grain Chain the ABA utilizes direct Industry engagement to surface and address regulatory and legislative matters that add costs to the Baking Industry. The Association published an annual ROI report to highlight their Supply Chain Advocacy.
Jewelers of America – Working through the Industry Supply Chain, JA positions its advocacy to work to continually assess risk and maintain consumer confidence. The Board and the members view the Association as their vehicle to drive results that support their business outcomes.
National Marine Manufacturers Association – The Association effectively utilizes an impressive supply chain advocacy approach to continuously help the Recreational Boating industry keep costs in line.
Global Cold Chain Alliance – Through its Strategic Planning process the Board asked GCCA to play a role in reducing the costs of regulatory compliance. The organization has forged relationships with regulatory agencies that have led in some situations to lower costs of compliance.
NPES – Advocacy is one of the key vehicles connecting global print equipment manufacturers and suppliers with its customers. Through an external working group, NPES is linking all aspects of the Industry Supply Chain to help the Industry impact its business challenges and outcomes.
Association Supply Chain Advocacy
Eliminating competitive boundaries between Associations in the Supply Chain helps Industries address emerging threats from Federal, State, and Local Government through a heavily concentrated Advocacy Strategy. What’s more this strategic approach helps Associations increase their relevance by accelerating Industry impact in the marketplace. As Board Leaders seek greater efficiency and solutions to their business challenges, they expect all organizations to work together for the good of the Industry. Meeting this new reality is a hand and glove strategy for Associations who want to energize member engagement and increase Advocacy Impact for their members. This could be the dawn of Member Engagement 3.0.
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