Tag: dc association consulting firms
In an evolving and complex world, is it possible for associations to become vital to the industries they serve? Today’s norm means slow or uncertain market growth, member expectations of direct return on engagement, and an emerging view that an association either drive or facilitate market disruption. As organizations consider these factors, is becoming a vital association too tall an order to fill?
It’s been seven years since the end of the great recession and one economist thinks there is a 60% chance of a recession next year. As global uncertainty and slow U.S. economic growth dominate the landscape, CEO’s should assess whether or not they are leading a recession ready association. While the next recession may not be as severe as the last one, be rest assured that business leaders are continually increasing scrutiny over expenditures not related to corporate performance.
In an era of unending economic challenges and uncertainty, industries must be relevant in order to grow. KPMG’s 2016 report “Setting the Course for Growth: CEO Perspectives” underscores how today’s CEO is laser focused on staying relevant in a turbulent global market. In order to remain relevant to their members Trade Association CEO’s focus more on understanding industry challenges then helping drive industry outcomes. Achieving Association Relevance Despite Market Turbulence is how CEO’s can position their organizations for long term growth and durability.
Where are CEO’s planning to spend their time in 2016? According to a KPMG study of 400 Chief Executives, “34% spend more time with regulators or are considering doing so.” The same report notes the regulatory environment as the number one issue that can “impact a company”, and adapting to government regulation is ranked as CEO’s second most critical challenge. For companies, the spike in regulatory activity is real. In 2015, Thomson Reuters published its sixth annual Cost of Compliance Survey noting among other challenges “regulatory fatigue.” Is the increase in regulatory activity reshaping associations?
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 Starts, Institute 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.
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.
“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.
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.
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.
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.
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.
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.
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.
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
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?
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?
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.
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?
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?
At 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.
According to a recent CNBC post “earnings are expected to be down by some 4 percent year over year, that is an 8-percent reduction from previous estimates.” How does this or any financial news connect to Association member engagement? What happens today influences how executives make decisions about where to invest their precious time.
No, not really. Under the watchful eye of shareholders, investors, and regulators an executive continually seeks better operating margins and top line growth. Interest in the Association’s success, member benefits, products or services won’t get or keep their attention for long. Promotional materials including what “we do for you” doesn’t really matter either. And special discounts bring them in the front door this year and out the back door next year.
Members don’t really care about the association’s “outputs.” They only care about “outcomes” that address their business/ professional challenges and opportunities. Everything else is just noise.
Engagement is not about an Association. Instead, it’s all about developing solutions that improve market and growth positioning, boosting operating performance, and recruiting and maintaining high performing talent. Having conversations about these issues and creating opportunities to share knowledge and develop solutions with other members can accelerate member engagement.
There are no “one-trick” ponies when it comes to member engagement. Aligning the Association as a strategic partner is a long term strategy to:
Quarterly earnings reports, monetary policy, and the value of the dollar all matter. Aligning your Association as an external strategic partner to build solutions and solve problems can accelerate member engagement.
Free eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com.
Traditional Association Thinking? Is there an Association that isn’t yet facing a for profit competitor? Both before and after the end great recession for profit competitors are aggressively marketing their way into Association markets. In what was once sacred ground Associations face existential threats to their long term competitive positioning. Commercial firms are investing heavily in tech savvy marketing and they are making their way into the C Suites of small, medium, and large firms across the United States.
