A Focus on Value

Running a trade association or professional society is very much like running a for profit business. Typical questions to be asked by a board in this tight economy include, how will we position ourselves and what is our unique value proposition, where will we find and how will we recruit new “customers,” how can we grow our organization and take it to the next level. Especially in a down economy it becomes critical for non-profits to revisit their strategic plan and explore revenue generating opportunities, as opposed to only looking at expense reductions which could impact members and member retention. Surviving any downturn does not mean simply belt tightening and scaling back, non profits should follow the business model and look for new and innovative ways to add value and benefit for those dues members are willing to pay.

At AMG, high on the list of benefits our client partners perceive is the specialization and experience our seasoned executives have in offering strategic advice and best practices for moving forward and adding value. We encourage clients to:

• Continuously communicate their value proposition to membership. Whether we are “selling” memberships, education or event registrations, it is all about conveying the benefits and ROI for each dollar spent.
• Keep innovations coming and to do more with less. Because AMG works with multiple clients, we can easily facilitate idea-sharing among our executives who them make recommendations to our client boards.
• Maximize and continuously monitor revenue and expense. AMG helps prioritize assigned staff time to ensure it is put to revenue generation initiatives and the organization is seeing a real ROI.
• Focus on quality benefits and initiatives which are “consumed” and appreciated by members. AMG can be a give a good third party assessment.

While we believe 2010 will continue to be a tight economy and a full recovery may not occur until late next year, we encourage boards to look beyond the coming 12 months and plan for the future. There is no better time then the present to survey members using an appropriate needs assessment tool; determine what they want from their association in the year ahead, how their needs have changed and what new benefits and services they might wish to have down the line. Planning for the future and focusing on the value proposition allows any non profit to compete with the best for profit business.