home > publications & resources > associations now

To order reprints of any article in its original format, visit Scoopreprintsource.com

Be the first to rate this article: Please Sign in to rate this.

Every cloud has a silver lining, right? It can be annoying to hear that when you're the one standing in the rain, but you owe it to your organization to look at the current economy as more than just an obstacle.

It's true that a lot of associations-not to mention for-profit organizations and government agencies-are hurting. And it's true that the economic environment has changed considerably from what it was five years ago or even one year ago. But there are ways your association can succeed within the current economy, if you're willing to make some changes (and maybe even take a few risks).

The authors you'll meet in the following pages aren't arguing that the economy isn't rough right now. But their ideas can help your association come in out of the rain.

Do Less-Then More

By Virgil R. Carter

The economy has turned to soapsuds, challenging individuals and organizations throughout the world, including many of our own nonprofit associations. Association members, customers, staff, and business partners are all feeling the pinch. Everyone is under pressure to try to do what we have always done (or more) with less. But this could be a mistake.

Why do more when you could be doing less? For nonprofits, this is the perfect time to do what we seldom do when times are good: review our existing programs, products, and services, and identify which ones have been hanging on for years, with little or no measurable contribution to either organizational mission or financial margin. Use this economy as an opportunity to reassess legacy programs, products, and services, identifying which ones effectively support the organizational mission, provide essential capital for organizational operations and reinvestment, or both.

Look Forward, Not Back

Almost every nonprofit organization has a substantial proportion of these legacy programs, started enthusiastically many years ago. Many consume large amounts of volunteer and staff time, not to mention financial capital. Despite a lack of measurable results, such programs are routinely budgeted and delivered year after year after year, without question.

Such legacy activities have a double-negative impact for nonprofits. They consume critical annual resources, without demonstrating a commensurate organizational return. And because they consume valuable resources, they preclude forward-looking organizational investment in innovation and new market development.

Many nonprofit organizations have virtually all annual resources tied up in the production and delivery of legacy programs, leaving little or no resources for organizational innovation and new market development-the vital research and development that is so critical for success. Where for-profit corporations will put significant resources toward investigating and investing in new opportunities, nonprofits, caught up in the production and delivery of the same programs, products, and services year after year, find themselves locked in an unenviable situation: Business operations geared toward maintenance of the status quo, despite a constantly changing social and business environment.

Our current economy provides an excellent opportunity to critically identify ineffective services and redirect a portion of annual resources toward the innovation and new markets necessary for the continued health of every social and business organization. But to take advantage of this opportunity, you must invest first in change leadership. The good news is that the economy is offering you an advantage in leading change, as well.

Leading the Charge for Change

Why do many nonprofits (and other organizations) do what they have always done, year after year, and fail to innovate and develop new markets? Why is change leadership so difficult? And what about today's economy could make it easier?

Professor John Kotter of Harvard Business School is arguably one of the most knowledgeable researchers on change management and business leadership. In his list of the stages required for successful change in the classic book Leading Change, the first step is to "establish a sense of urgency." When times are good (and complacency is high), critical analysis and the drive for change is difficult at best, and impossible most of the other times. During good times, many people are more interested in continuity, not working on the "change problem." (Note: For Kotter's own take on this very issue, see page 28.)

Thus, our current economy is an opportunity too good to miss.

Of course, even in our current economic situation, one can find complacency. Have you heard anyone say, "As soon as the downturn is over, we will be in good shape again"? These "just hang on" philosophies may be due to legitimate past organizational successes and to a common human desire to maintain the familiar and predictable status quo. But "hanging on" is based on the assumption that everything will be the same, once the economy turns north. Unfortunately, in our competitive world, almost nothing remains the same as it used to be.

Our current economy can be the perfect time for successful nonprofit leadership. Experienced volunteer and staff leaders will use this opportunity to capture people's attention, focus on the level of urgency, work with teams of key volunteers, customers, and staff to critically review existing services, set ambitious new organizational visions and goals, communicate the new vision and strategies, and empower implementation. This is a time of great opportunity. Let's embrace it!

Virgil R. Carter is the retired executive director of the American Society of Mechanical Engineers and a consultant with Plexus Consulting Group. Email: virgilcarter@comcast.net

Invest in the Future

By Sara Perry

As a local real estate association, the Charleston (SC) Trident Association of Realtors began to feel the pinch of the economic crunch more than a year ago, though fortunately our market has not been hit as hard as others. While we've seen a decline in the total number of members and member companies, we anticipated the decrease when planning our programs and budgets for 2008 and 2009, so we've been able to not only survive, but to thrive when our members need us most. We believe that now is the time to seek out new ways to serve our members-and to invest in the future of our association.

Although many Realtors are struggling to make ends meet at a time when real-restate closings are scarce (members of our board of directors included), our volunteer leaders have become invigorated, bringing forth new ideas to actually increase services and decrease their cost to members. Sponsorships and ticket sales are down across the board, but a sensible reserve policy and strong fiscal responsibility on the part of our staff and our leadership has allowed us to continue services in spite of falling revenues.

During the summer of 2008, we convened a meeting of our executive committee and senior staff to brainstorm and determine how we might alter our plans for the remainder of the year to better serve members. The passion in the room was palpable, with everyone in attendance determined to help Realtor members. The results of that meeting are still being felt.

Our members are independent contractors, and almost all exist solely on sales commissions. While we're limited in our in our ability to help them financially, we are able to direct resources to equip them with tools to succeed in a tough market. With that in mind, we've focused much of our energy on offering free continuing education opportunities, from large events with national speakers to small roundtables led by industry veterans. We've also surveyed our members on topics and trends they'd like additional information on, and we plan to use that input for future brown-bag-luncheon meetings in 2009.

We also decided to capitalize on existing educational opportunities by subsidizing our members' registration fees for our state convention, which was held in our city last fall. Our state association had already arranged for a phenomenal lineup of speakers and functions, so rather than reinvent the wheel and try to mimic their programming, we offered our members a discount of nearly 20 percent on their registration fees. This helped boost attendance at the conference, encouraged members to take advantage of great educational opportunities, and exposed many members to the associations' functions in a new light, which we are confident will result in a stronger leadership team in the future. Finally, we've developed a discount card that allows our members to pay one flat fee for access to more than 70 courses throughout the year, saving them money while they develop professionally.

We canceled our annual holiday gala-normally a black tie event for upward of 500 members and guests-because we knew many would feel compelled to attend despite the financial hardship. We've also increased our PR and advertising efforts to help homeowners identify foreclosure assistance resources and to remind the public of the value of using a Realtor in their transactions. Other future projects have been moved up in order to develop consumer resources that will help our market, including website enhancements that will serve consumers, sellers, and Realtors.

We have been able to offer some financial assistance in the form of a seven percent discount on annual dues for those members who paid online (saving us staff resources in processing payments) and on time (encouraging prompt payment when money is tight). We waived the application fee for new members during the final months of 2008, prompting many agents who had previously been involved in the organization indirectly to become full members. We also allowed increased flexibility on assessment of late payment penalties for those who needed more time.

All told, the changes we've made have cost our organization nearly $75,000 in expenses and lost revenues, but the reward has been substantial, and we know it's an investment in our organization's future. Our members know that we recognize their struggles and that we are working hard to increase the return on their dues investment and equip them for success when market conditions improve. We've had members tear up when learning about some of the efforts we're making on their behalf, and we've received many notes of thanks and other comments of appreciation.

Times are tough for Charleston-area Realtors, but their association is making every effort to help them through it.

Sara Perry is vice president of operations for the Charleston Trident Association of Realtors. Email: sara@charlestonrealtors.com

Blow the Doors Off Meetings-As-Usual

By Kevin Freiberg and Jackie Freiberg

At a party over the holidays, we talked with a good friend who happens to be a therapist. She commented on how she has built three other therapists' practices with referrals that she cannot handle. While most businesses are tanking, her business is thriving.

What does this tell us? When times are challenging, people need communication, conversation, and the opportunity to share their fears, frustrations, challenges, and coping strategies. When people are fearful, they hunger for information, for answers, and for opportunities to learn. Learning restores hope, fuels solutions, and frees people from the disabling tension and insecurity of fear.

Now is not the time to cancel meetings, cut the training and development budget, or nix the conference. Now is not the time for people to be alone. Do not run away from hosting a meeting or an event. Now is the time to run to them.

What Could You Change?

What if you were to shake it up and create a new reality for your industries and your members? What if you could blow the doors off meetings-as-usual? What if you made a commitment to offer no more boring meetings-you know, those typical conferences where people listen endlessly to industry speakers, motivational speakers, entertainers, and now even infotainers in between a continental breakfast, a boxed lunch, and the infamous banquet dinner?

What if you really did your homework and discovered what people in your industry need this year? Consider the major changes and trends taking place in the world today and what these shifts mean for your association and industry. How can your next meeting prepare your members to confront this new reality?

Are your members able to look around corners and anticipate what's coming? A person who can see the trends, connect the dots, and share this analysis with others in a way that makes sense becomes extremely valuable. But, here's the key. You can't see what you don't look for. The power of observation will become more acute in you and your members when you start looking for more than meetings-as-usual can give you.

What if you throw everything you know about hosting an event out the window and create an event unlike anything you've ever offered? Look over evaluations from the last five years and highlight everything that really worked well. How could you use that success to fuel more success, to create the event of the industry-the meeting of all meetings?

Why Not?

If you're saying "yeah, but …" to these ideas right now, then let us remind you of what Einstein once said: "Great spirits have always encountered violent opposition from mediocre minds."

Many people are stuck and stalled by fear these days. No one really knows what the new year will offer. Will it be more doom and gloom, or will it offer signs of hope and restoration? Regardless of what the future holds, we have control over how we deal with it. A great spirit will not let cutbacks, headlines, or fear take away its passion for moving forward and shaking things up.

Now is the time to declare war on complacency and challenge the status quo, especially if it isn't working. Think about what information you can bring to your members and the industry-information that might inspire more "what if" thinking and more ideas on how to shake it up, make a difference, add value, and get other people back into the game. It's time to create a new reality and do whatever it takes to blow the doors off meetings-as-usual.

Dr. Kevin Freiberg and Dr. Jackie Freiberg are professional speakers, thought leaders, and the authors of NUTS!, its sequel GUTS!, and BOOM! 7 Choices for Blowing the Doors Off Business-as-Usual. They can be reached at www.freibergs.com

Help Members and Grow

By Tony Rossell

Watching the news and reading the headlines about the economy gives the most stouthearted of us anxiety. The Washington Post, for example, finished the year by headlining the struggles of associations on the front page of the Business section ("Trade Groups Regroup: As Revenue Shrinks, Area Associations Forced to Cut Staff, Services," December 15, 2008). The article presented a picture of declining revenue and staff layoffs.

But despite the headlines, when looking at marketing response data from a broad array of associations, a very different story is emerging. It is a story of individuals and companies turning to membership in associations for security, services, networking, and professional development.

This means that right now is perhaps the best time in recent memory to acquire new members.

We would all agree that manufacturing has been a hard hit sector of our economy. Nonetheless, the Society of Manufacturing Engineers (SME) found 2008 to be its best year in more than a decade for both retaining and attracting new members. Mark C. Tomlinson, the Executive Director of SME, says "A key reason for our turnaround was aggressive marketing around the theme, 'Survive and Thrive'. We backed up this theme by providing members with real value to help them excel in their job and career."

The Association for Supervision and Curriculum Development has enjoyed decades of membership success-growing from 12,000 members to more than 175,000. And 2008 has not been an exception. Ron Miletta, assistant executive director of ASCD, says that "dues revenue continues to be the bright spot in our budget picture, with an increase of four percent so far this year. And members continue to represent an important purchasing segment for our products and services."

How about the retail sector of the economy? Surely there has not been membership growth there.

Well, Costco-a for-profit membership organization-is also reporting big membership gains and strong membership renewals for 2008. Its membership growth shows how value and savings sell, especially in a tough economy. As quoted in a transcript from their first quarter 2009 earnings call, Costo representatives say, "At quarter end on November 23, our paid executive membership topped eight million, an increase of almost 400,000 or five percent just in the last 12 weeks or about 30,000 per week increase in the quarter, so again it still has been a big success for us. … In terms of renewal rates, as I said, they continue strong, essentially our all-time high renewal rate, at … a shade [over] 87.0 percent."

The Society of Human Resource Management has also realized one of its best membership years ever. Membership has gone from 36,000 in 1992 to 250,000 in 2008, making SHRM one of the largest associations in the United States. Success has been driven by a broadening of marketing channels and a focused message of human resources as a critical strategic asset to companies.

How can this membership growth be explained? There are three key drivers.

First, change prompts people to look at new opportunities and solutions. During times of economic uncertainty, people who formerly were secure and may have felt no need for affiliation with an association, even after years of invitations, now are ready to become a part of a community. In times of uncertainty, it is human nature to circle the wagons.

Secondly, associations are unique in their ability to provide market- and job-specific value and savings.

Think for a second. If you knew your job was in jeopardy, isn't your professional association one of the first places you would go for help? Associations are the place to network and make new contacts, increase personal industry recognition, go to job boards, find replacement health insurance, save money through member discounts, and improve professional credentials through training and certification.

The fact is, association membership is just about the cheapest unemployment insurance a member can buy.

Finally, associations that continue to market membership by presenting the unique value and solutions they make available to members see success. The temptation when an association encounters budget strains is to cut membership marketing. But this means the association will miss out on adding appreciative members who were able to benefit from the association's products and services in their time of need.

And properly managed membership marketing allows an association to read and analyze results for each promotion and then direct marketing dollars to top performing market segments, lists, and messages. ROI is measurable and statistically predictable.

What's the bottom line for associations in these times? Stay in the membership acquisition market-emphasizing the unique services you alone can provide. The result will be a growing and loyal membership building your association for future success.

Tony Rossell serves as the senior vice president of Marketing General, Inc., in Alexandria, Virginia. A frequent writer and speaker on marketing topics, he is a contributing author to two books, Membership Marketing (ASAE, 2000) and Membership Essentials (ASAE & The Center, 2008). Tony blogs at www.membershipmarketing.blogspot.com

More Articles From Associations Now, February 2009

  Why Your Association Needs a Sense of Urgency

  A How-To (and How-Not-To) Guide to Launching a Magazine

  The Upside of Down

  How Are Your Ethics?

  Finding Space for Success

  Strategy Session: What To Do When Funding Falters?

Top ^
To ASSOCIATIONS NOW
To ASAE & The Center home