3 Goals Transform an Association Business Model

November 6, 2013

 association business model3 Goals Transform an Association Business Model. It’s never easy to embrace the hardships of a historic recession or its aftermath.  However Tom Dobbins, President at Arlington, Virginia based American Composite Manufactures Association (http://www.acmanet.org/)  (ACMA) seized a key moment in time. Dobbins and his team succeeded in closely aligning their organization with its small and large composite manufacturers, suppliers and distributors. Three year overall 9% revenue growth and 10% annual conference growth after suffering through the downturn signals the Association is on track.

ACMA Embraces Core Focus

Reinforcing a widely accepted approach among growth minded CEO’s, ACMA reformulated its Mission Statement reinforcing its commitment to their manufacturer and supplier member base. Moving forward the Association would provide direct ROI for dues dollars invested:

  •  Relevant education and information.
  • Expertise and representation in legislative and regulatory affairs.
  • Market growth and development.

3 Goals Transform an Association Business Model

 Associations like ACMA narrow their focus reflecting clear cut deliverables for dues payers. The  Board of Directors renewed its commitment to support their members in all 50 states:

  1.  Provide resources for managing and growing businesses that are utilized    by a significant number of the membership.
  2.  Provide resources that a significant number of the membership find useful in educating and training their employees.
  3.  Develop multiple communication channels to disseminate information to the greatest number of member companies and other stakeholders.

Upping Their Game

Increasing their Advocacy efforts through a Federal Agency Forum, launching a new online learning platform and in October 2014, the launch of CAMX produced by ACMA and SAMPE. This event will provide educational programs and networking opportunities for sharing product innovations and establishing key industry contacts.

3 Goals Transform an Association Business Model

Dashboards reflecting data and metrics keep Tom Dobbins and his team focused and executing the 3 key goals that helped realign ACMA and transform its business model (http://bit.ly/13zCQkw).

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

association business model

Member Engagement: Call to Action

October 15, 2013

Member Engagement Member Engagement: Call to Action. Three organizations, Potomac Core Consulting, Vertical Leap Consulting and icimo are joining forces to conduct a Member Engagement Strategies Survey. Unlike any other to date, the survey focuses on Member Engagement as a game-changing growth strategy. The primary objective of the survey is to identify innovations and leading-edge practices in member engagement.

Define Future Member Engagement Levels

Potomac Core President & CEO Daniel A. Varroney notes “we’ll surface linkages between member engagement practices and an association’s business model.” Vertical Leap President  Steve Lane adds “we’ll also discover examples where associations are tracking contribution and collaboration behaviors that are predictive of even stronger levels of future engagement.”

Member Engagement: Call to Action

The online survey is being conducted during October and sent electronically to more than 5,000 Association and Society Executives around the United States.

Bryce Gartner, CEO of icimo notes: “The survey is built around core principles.  At the heart of these principles is the Association’s value premise.  Associations are positioned to bring together constituencies creating new solutions; driving member value that shapes both industries and professions.”

Potomac Core – Association Consulting, www.potomaccore.com, is a Washington, DC area custom focused one stop shop delivering highest quality growth strategies and solutions to U.S., National, and International Associations and Professional Societies. We help your Association surface actionable, market-based data. Then we create discussions about your member’s business outcomes to align your Association with their business outcomes.

Vertical Leap Consulting, www.verticalleapconsutling.com, is all about growth and positioning strategies for associations and healthcare organizations. Founded in 2002, we are headquartered in the Montgomery County, Maryland suburbs of Washington D.C.  We assist executives and boards who face tough challenges and compelling reasons to enhance their organization’s impact.

icimo, www.icimo.com, headquartered in the North Carolina Triangle Area offers software and services that gets any size organization using their data quickly.  Our tools combined with training and best practices give clients a jump-start to being data driven, transforming “big data” from buzzword into successful real world strategies for driving results by turning insights into action.  

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

Association Speed to Market

May 15, 2013

Association Speed to Market

 As Associations compete for the seemingly smaller pool of corporate dollars, CEOs, senior managers, and boards want every possible competitive advantage.  With Conference and Training vendors fighting for their piece of the pie, they know how to leverage a powerful CRM (Customer Relations Management) and custom databases to get at the market place quickly. In order to remain competitive, Associations too need the same speed to market. There are plenty of technology tools and alternatives, however CEO’s and Senior Managers should begin the process with an information scan.

Start at the Beginning

Regardless of Association size, the effort  should start with a full inventory of member, sponsor and prospect data. Determine what exists and develop a smart list of what else is required. Most importantly, make sure that the Association is capturing “up at night issues“ and company participation. This is the information that helps formulate Data Driven Strategies for organizations.

Know Thy Marketplace

Maintaining a full profile on key aspects of members, prospects and sponsors is essential.  Sir Francis Bacon noted that “Knowledge is power ” and for Associations, updated market information is omnipotent.

Every database should at a minimum contain the following information about members and sponsors, and have a treasure trove of data on prospective members:

Members and Sponsors

  • Issue and regulatory concerns that impact member or sponsor company’s ability to achieve their business objectives.
  • Participation in up at night issue activities, i.e. committees, calls to action.
  • Updated contact information for executives who approve member dues or sponsorship’s.
  • Complete descriptions of member and sponsor products and services and industries they serve.
  • Record of significant staff interaction with member and company executives.
  • Staff relationship owner.

Prospects

  • Issue and regulatory concerns that impact prospective member or sponsor company’s ability to achieve their business objectives.
  • Complete descriptions of products and services and industries they serve.
  • Board Members in similar industries or who have similar issue or regulatory concerns.
  • Participation in up at night issue activities, i.e. committees, calls to action.
  • Updated contact information for executives who approve member dues or sponsorship’s.
  • Inventory of Associations prospective members or sponsors participate in.
  • Record of significant staff interaction with member and company executives.
  • Staff relationship owner.

Ready to Add Speed to Market 

With complete member, prospect and sponsor profiles, Associations are then ready to add capacity.   The updated database is complete but not capable of driving speed to market. As the marketplace moves in real time, Associations require the capacity that only an effective CRM capable resource provides.

CRM capability should provide Association’s the ability to deliver:

  • Analytics reflecting member engagement and participation.
  • Net performance trends.
  • Member and prospective member or sponsor business outcomes.
  • Capacity to segment data and deliver focused messaging.

If an Association database and CRM are missing any of these elements they should identify new technology solutions that will complement their existing infrastructure.

Association Speed to Market

For Associations making the plunge adding speed to market at your association makes a difference. Leveraging updated data and CRM capacity, one Association doubled grass roots program participation and another Association achieved record conference profits.

Vendors are competing more aggressively than ever for their share of conference, sponsor, training, education and certification dollars. Although budget investments face increasing scrutiny, adding CRM capacity will enhance an Associations speed to market.

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

association speed to market

 

Great Strategy Deserves Strong Execution

May 13, 2013

great strategy

Great Strategy Deserves Strong Execution. After a rough patch, board members are confident that their new strategic plan brings the Association closer to their business objectives.  Board leaders are energized too, and they’ve debriefed their CEO and have requested a three year action plan with measurable results.

Genius Inventor Thomas Edison knew that transformation required more than good ideas when he said “Vision without execution is hallucination.” In a 24-7 world, execution is no longer a tactic, it must be a strategy for any Association or business venture. After all, Boards measure results and these are achieved on the basis of solid execution.

Execution is a Strategy and Not a Tactic

“Execution has to be in the culture” notes Larry Bossidy, former Chairman and CEO, Honeywell International, and Corporate Strategist Ram Charan, publishers of  EXECUTION, The Discipline of Getting Things Done, 2002 and 2009. The authors convey powerful examples of CEO’s who succeeded and failed based on their capacity to execute strategies.

Board members live in corporate cultures where metrics and data driven strategies define success or failure for their companies and their shareholders. They bring this proclivity into Association Board rooms and expect Chief Executives and their leadership team to provide them with action plans including metrics, dates and measurable results.

When the Board enthusiastically presents the newly minted strategic plan, they expect a power packed action plan matching and exceeding their expectations. Now what?

Execution Delivers Measurable Results

Measurable results are not about instilling fear, but about building a culture of expectation for Association staff. As leaders, CEO’s have the capacity to recalibrate and define expectations throughout the year. They can shift gears and utilize the new strategic plan to swing into immediate action.

CEO & Senior Management Teams own their execution, however it’s the Chief Executive who sets the tone and manages to the new expectation.

4 Steps to Strong Execution

1. Define Execution – Meet off-site with Senior Managers to formulate execution strategies. Be clear, the success measurement of the session is action plans, dates and measurable results. CEO’s should accept nothing less, and lead an energizing and optimistic session making execution the only outcome that matters. Capture specifics and schedule a second meeting.

2. Put Pieces in Place to Execute Effectively – At this meeting the CEO and Senior Managers need to align position descriptions, performance objectives and compensation. Each amplifies the execution mandate and the compensation plan should motivate the staff team to always exceed expectations.

3. Staff Assessment – Steps 1 and 2 are crucial, yet execution is only possible when Associations have the skills that match the execution expectation in place.   As leaders, an honest and objective review will insure that they are putting the best team possible on the field to compete and win.

4. Communication – W. Edwards Demming guides leaders to “inspect what you expect.” If execution and measurable results are expected,  then CEOs, Senior Managers and Supervisors must meet with direct reports on a regular basis, offer balanced feedback and focus on execution of objectives.  

Great Strategy Deserves Strong Execution

Following a record revenue losing year from weak execution, an Association Senior Manager embraced a similar 4 step approach and never looked back. Multi year growth performance followed while everyone reveled in a new culture of execution.

In the 2004 movie depiction of the 1980 U.S. Hockey Team’s breathtaking win over the mighty Soviet Hockey team, Coach Herb Brooks said that “Great moments are born from great opportunity.”  CEOs’ opportunity rests inside a culture of execution. If Board members expect their Associations to heed their clarion call, then Associations need a culture of execution to deliver measurable results.

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

great strategy

Associations’ Non Dues Revenue Puzzle

May 8, 2013

Associations’ Non Dues Revenue Puzzle

 Associations must keep pace in salary, benefits and member service offerings in order to remain competitive. While there is general agreement that  membership renewals and new member growth are essential for Associations, there is a growing need for alternate revenue streams, too.  Non dues revenues are increasingly more important for CEOs, Senior Managers and Boards of Directors’, they see the need to grow and understand there is no easy answer.

Definitions of non dues revenue are different from one Association to another. In some cases Training, Education, Digital Published Information and Conferences all contribute to revenue streams. However the definition and the focus of the revenue stream must be data based and member focused.

Yes, Associations can increase revenues but first they need to define and understand the existing member market first.  In “Profit From the Core, Growth Strategy in an Era of Turbulence” Chris Zook and Jim Allen, copyright 2010 Bain and Company(updated edition),  the authors present a compelling review process whereby a business develops boundary definitions, and determines marketplace differentiation to define new revenue growth opportunities.

Non Dues Revenue Checklist

Data Driven Strategies, Core Connections and Member engagement are as effective in identifying and growing non dues revenues as they are in retaining and recruiting new members. Boards utilize similar processes inside their companies and will appreciate the same thoughtful and deliberate approach at their Association:

1. Data Driven Strategies – Identify member business objectives, determine products, services, education, training, standards and certification that enhance member market performance. Conduct competitive market analysis understand what other Associations offer, conduct beta tests and develop robust offering which complement a strong policy, advocacy and regulatory offerings.

2. Core Connections – The strategic partnership is enhanced with a suite of value added resources. Associations can reinforce their credentials as a destination location with the most appropriate services.

3. Member Engagement – As is the case with policy and advocacy engagement members want to know they have an impact on outcomes. Provide opportunities to test new products and services and engage them in developing and designing your new offerings.

Associations should continually evaluate the efficacy of their offerings.  This process will help keep non dues revenue initiatives focused on member business objectives.

Associations Can Profit from the Core

Yes it really works! Associations are devising and developing leadership roles that complement their policy and advocacy work:

The Air Conditioning Contractors of America (ACCA) leads the HVAC industry with research and technical materials as well as online training.

Technology Association of Georgia (TAG) continually creates Societies to help their members address arising business needs.

National Institute of Investor Relations (NIRI) is building a certification program for its global membership.

A number of  Associations note that networking is a key element of the non dues revenue value proposition. In a number of cases, Associations utilize registration software allowing members to make networking appointments ahead of time.

Associations’ Non Dues Revenue Puzzle

When it comes to non dues revenue the Jerry McGuire “Show Me the Money” approach is a non starter. Why? Market competition, the rise of single issue coalitions and new Associations. Members expect connections to their business objectives, especially on products and services. Or they will vote with their check book and seek other solutions.

Market turbulence is now a part of the business landscape for Associations which means, any new products require the same type of due diligence before they go to market. Although there are no quick fixes, there is at least a method to make and build a case for products or services that add to member success.

non dues revenueFree eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com,www.icimo.com,and www.verticalleapconsulting.com.

 

Driving Association Revenue Growth

March 11, 2013

Driving Association Revenue Growth. Board Participation is key.Company Executives are busy and in a number of cases expect Association staff to deliver revenue. Yet, there are examples where Board Members are very helpful in driving revenue. In certain situations, Boards help retain and recruit members and sponsors and the results are impressive. Could the paradigm change at your Association? Yes and it requires a strategic change in how your Association works with its Directors.

Four Steps to Board Participation 

First: Engage and Energize Board Members. Recruit Board members to participate on Pain Point issues (see March 4 2013 post: Know Pain Points to Drive Revenue Growth).  Executives will participate on Association Boards in order to engage on policy affecting their business objectives. Once they see ROI, it’s time for another conversation.

Second: Confirm that involvement adds ROI.  Share upcoming advocacy strategies, seek feedback and buy in.

Third: Seek help to expand the Association’s advocacy capacity on Pain Points. Be prepared, be specific and make it easy for them to help. For example, request introductions, phone calls, e mails, letters (Association provides) to priority retention, new member or sponsor companies.

Fourth: Acknowledge the Board members’ help to drive revenue.  Recognize help at their board and executive committee meetings. This shows sincere appreciation and it will motivate other Board Members to help.

Board Engagement

Associations should view this change as a multiyear effort. Every Board relationship is critical and consequently each is built one at a time.

Driving Association Revenue Growth

One Association utilized this approach to recruit a high percentage of its Directors. The same Board Members once they participated in Pain Point issues, helped drive back to back above 90% retention and $1 million + net revenue gains. Another Association built on new sponsor offerings and significantly increased revenues.

How has your Association worked with Board members to secure their help in driving revenue? 

Much more on Association Revenue Growth at www.potomaccore.com/blog